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Economic efficiency of coastal hotel companies

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  • Jan Frančeškin
  • Štefan Bojnec

Abstract

The article focuses on the analysis of the economic efficiency of Slovenian coastal hotel companies in the period between 2015 and 2018. We applied non-parametric Data Envelopment Analysis to estimate economic efficiency and the panel regression analysis to explain the association between economic efficiency, economic growth, and the hotel location. The results showed that most coastal hotel companies were economically inefficient associated with decreasing returns to scale. As a key source of inefficiency we identified inappropriate allocation of inputs. Given the high concentration of hotels in the municipality of Piran, the hypothesis on higher efficiencies in this location area has been rejected. Most coastal municipalities were negatively related to the economic efficiency of the hotel companies. We also rejected the hypothesis that economic growth affected the economic efficiency of the Slovenian coastal hotel companies.

Suggested Citation

  • Jan Frančeškin & Štefan Bojnec, 2022. "Economic efficiency of coastal hotel companies," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 4425-4436, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:4425-4436
    DOI: 10.1080/1331677X.2021.2013277
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    Cited by:

    1. Guang Chu & Liangjian Yang & Jinhe Zhang & Tian Wang & Yingjia Dong & Zhangrui Qian, 2024. "Navigating the Efficiency Landscape: A Data Envelopment Analysis of Tourist Resorts in Jiangsu Province for Optimized Socio-Economic Benefits," Sustainability, MDPI, vol. 16(4), pages 1-21, February.

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