IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v65y2018icp131-142.html
   My bibliography  Save this article

The estimation and decomposition of tourism productivity

Author

Listed:
  • Assaf, A. George
  • Tsionas, Mike

Abstract

This paper estimates a total factor productivity index that allows for a rich decomposition of productivity in the tourism industry. We account for two important characteristics: First, the heterogeneity between multiple tourism destinations, and second, the potential endogeneity in inputs. Importantly we develop our index at the macro level, focusing on cross-country comparisons. Using the Bayesian approach, we test the performance of the model across various priors. We rank tourism destinations based on their tourism productivity and discuss the main sources of productivity growth. We also provide long-run productivity measures and discuss the importance of distinguishing between short-run and long-run productivity measures for future performance improvement strategies.

Suggested Citation

  • Assaf, A. George & Tsionas, Mike, 2018. "The estimation and decomposition of tourism productivity," Tourism Management, Elsevier, vol. 65(C), pages 131-142.
    • Handle: RePEc:eee:touman:v:65:y:2018:i:c:p:131-142
    DOI: 10.1016/j.tourman.2017.09.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517717301942
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2017.09.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Caselli, Francesco, 2005. "Accounting for Cross-Country Income Differences," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 9, pages 679-741, Elsevier.
    2. Barros, Carlos Pestana & Botti, Laurent & Peypoch, Nicolas & Robinot, Elisabeth & Solonandrasana, Bernardin & A., George Assaf, 2011. "Performance of French destinations: Tourism attraction perspectives," Tourism Management, Elsevier, vol. 32(1), pages 141-146.
    3. Subal Kumbhakar & M. Denny & M. Fuss, 2000. "Estimation and decomposition of productivity change when production is not efficient: a paneldata approach," Econometric Reviews, Taylor & Francis Journals, vol. 19(4), pages 312-320.
    4. Goncalves, Olga, 2013. "Efficiency and productivity of French ski resorts," Tourism Management, Elsevier, vol. 36(C), pages 650-657.
    5. Barros, Carlos P. & Guironnet, Jean-Pascal & Peypoch, Nicolas, 2011. "Productivity growth and biased technical change in French higher education," Economic Modelling, Elsevier, vol. 28(1-2), pages 641-646, January.
    6. Mike G. Tsionas, 2016. "Alternative Bayesian compression in Vector Autoregressions and related models," Working Papers 216, Bank of Greece.
    7. Maria Francesca Cracolici & Peter Nijkamp & Piet Rietveld, 2008. "Assessment of Tourism Competitiveness by Analysing Destination Efficiency," Tourism Economics, , vol. 14(2), pages 325-342, June.
    8. Rajarshi Guhaniyogi & David B. Dunson, 2015. "Bayesian Compressed Regression," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 110(512), pages 1500-1514, December.
    9. Maria Francesca Cracolici & Peter Nijkamp & Miranda Cuffaro, 2007. "Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation Based on Data Envelopment Analysis and the Malmquist Method," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 325-343, Springer.
    10. Valentina Bosetti & Mariaester Cassinelli & Alessandro Lanza, 2007. "Benchmarking in Tourism Destinations; Keeping in Mind the Sustainable Paradigm," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 165-180, Springer.
    11. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
    12. Caselli, Francesco, 2005. "Accounting for cross-country income differences," LSE Research Online Documents on Economics 5266, London School of Economics and Political Science, LSE Library.
    13. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    14. Nicolas Peypoch & Bernardin Solonandrasana, 2008. "Aggregate Efficiency and Productivity Analysis in the Tourism Industry," Tourism Economics, , vol. 14(1), pages 45-56, March.
    15. A. George Assaf & Larry Dwyer, 2013. "Benchmarking International Tourism Destinations," Tourism Economics, , vol. 19(6), pages 1233-1247, December.
    16. Briec, Walter & Peypoch, Nicolas & Ratsimbanierana, Hermann, 2011. "Productivity growth and biased technological change in hydroelectric dams," Energy Economics, Elsevier, vol. 33(5), pages 853-858, September.
    17. Assaf, A. George & Tsionas, Efthymios G., 2015. "Incorporating destination quality into the measurement of tourism performance: A Bayesian approach," Tourism Management, Elsevier, vol. 49(C), pages 58-71.
    18. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    19. Caselli, Francesco, 2005. "Accounting for cross-country income differences," LSE Research Online Documents on Economics 3567, London School of Economics and Political Science, LSE Library.
    20. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    21. Tsionas, Efthymios G. & George Assaf, A., 2014. "Short-run and long-run performance of international tourism: Evidence from Bayesian dynamic models," Tourism Management, Elsevier, vol. 42(C), pages 22-36.
    22. Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), 2007. "Advances in Modern Tourism Research," Springer Books, Springer, number 978-3-7908-1718-8, June.
    23. Nazrul Islam, 2003. "Productivity Dynamics in a Large Sample of Countries: A Panel Study," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(2), pages 247-272, June.
    24. Carlos Barros & Fernando Alves, 2004. "Productivity in the tourism industry," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(3), pages 215-225, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chien-Chiang Lee & Mei-Ping Chen, 2022. "The impact of COVID-19 on the travel and leisure industry returns: Some international evidence," Tourism Economics, , vol. 28(2), pages 451-472, March.
    2. Kristiaan Kerstens & Jafar Sadeghi & Ignace Van de Woestyne & Linjia Zhang, 2022. "Malmquist productivity indices and plant capacity utilisation: new proposals and empirical application," Annals of Operations Research, Springer, vol. 315(1), pages 221-250, August.
    3. Walheer, Barnabé & Zhang, Linjia & Luo, Yingchan, 2020. "Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation," Economic Modelling, Elsevier, vol. 86(C), pages 210-226.
    4. Arpan Kumar Kar & Shweta Kumari Choudhary & P. Vigneswara Ilavarasan, 2023. "How can we improve tourism service experiences: insights from multi-stakeholders’ interaction," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 73-89, March.
    5. Songsong Zhao & Tai Huang & Jianchao Xi, 2022. "Understanding the Evolution of Regional Tourism Efficiency: Through the Lens of Evolutionary Economic Geography," Sustainability, MDPI, vol. 14(17), pages 1-16, September.
    6. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    7. Tiantian Guo & Jidong Wang & Chen Li, 2022. "Spatial–Temporal Evolution and Influencing Mechanism of Tourism Ecological Efficiency in China," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    8. Aurélie Corne & Olga Goncalves & Nicolas Peypoch, 2020. "Evaluating the performance drivers of French ski resorts: A hierarchical approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 389-405, April.
    9. Liu, Anyu & Wu, Doris Chenguang, 2019. "Tourism productivity and economic growth," Annals of Tourism Research, Elsevier, vol. 76(C), pages 253-265.
    10. Federico Inchausti-Sintes & Ubay Pérez-Granja & José Juan Morales-Mohamed, 2021. "Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos," Tourism Economics, , vol. 27(5), pages 1039-1059, August.
    11. Hai Dong & Nicolas Peypoch & Linjia Zhang, 2020. "Do contextual factors matter? Evidence from Chinese hotel productivity with heterogeneity," Tourism Economics, , vol. 26(2), pages 257-275, March.
    12. Arpan Kumar Kar & Sunil Kumar & P. Vigneswara Ilavarasan, 2021. "Modelling the Service Experience Encounters Using User-Generated Content: A Text Mining Approach," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(4), pages 267-288, December.
    13. Zhen Su & Joshua R. Aaron & William C. McDowell & Dan Dan Lu, 2019. "Sustainable Synergies between the Cultural and Tourism Industries: An Efficiency Evaluation Perspective," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    14. Larry Dwyer, 2022. "Productivity, Destination Performance, and Stakeholder Well-Being," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-16, July.
    15. Obaid Ur Rehman & Xiaoxing Liu & Abdul Rauf & Mayada Ben Slama & Waqas Amin, 2020. "Internet tradition and tourism development: A causality analysis on BRI listed economies," Tourism Economics, , vol. 26(6), pages 926-957, September.
    16. Michael L Polemis & Panayiotis Tzeremes & Nickolaos G Tzeremes, 2023. "Hotels’ occupancy rates and convergence: Empirical evidence from the first pandemic wave," Tourism Economics, , vol. 29(2), pages 533-542, March.
    17. Assaf, A. George & Tsionas, Mike G., 2019. "A review of research into performance modeling in tourism research - Launching the Annals of Tourism Research curated collection on performance modeling in tourism research," Annals of Tourism Research, Elsevier, vol. 76(C), pages 266-277.
    18. Nickolaos G Tzeremes, 2019. "Hotel productivity: A robust Luenberger productivity indicator," Tourism Economics, , vol. 25(6), pages 987-996, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Calogero Guccio & Domenico Lisi & Marco Martorana & Anna Mignosa, 2017. "On the role of cultural participation in tourism destination performance: an assessment using robust conditional efficiency approach," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(2), pages 129-154, May.
    2. Tiziana Cuccia & Calogero Guccio & Ilde Rizzo, 2017. "UNESCO sites and performance trend of Italian regional tourism destinations," Tourism Economics, , vol. 23(2), pages 316-342, March.
    3. Liu, Anyu & Wu, Doris Chenguang, 2019. "Tourism productivity and economic growth," Annals of Tourism Research, Elsevier, vol. 76(C), pages 253-265.
    4. Mohamed Amara & Khaled Thabet, 2019. "Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 25-51, August.
    5. Massimo Del Gatto & Adriana Di Liberto & Carmelo Petraglia, 2011. "Measuring Productivity," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 952-1008, December.
    6. Assaf, A. George & Tsionas, Efthymios G., 2015. "Incorporating destination quality into the measurement of tourism performance: A Bayesian approach," Tourism Management, Elsevier, vol. 49(C), pages 58-71.
    7. Guccio, Calogero & Mazza, Isidoro & Mignosa, Anna & Rizzo, Ilde, 2018. "A round trip on decentralization in the tourism sector," Annals of Tourism Research, Elsevier, vol. 72(C), pages 140-155.
    8. Gregor Singer, 2024. "Complementary Inputs and Industrial Development: Can Lower Electricity Prices Improve Energy Efficiency?," CESifo Working Paper Series 10944, CESifo.
    9. Douglas Gollin & Christopher Udry, 2021. "Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture," Journal of Political Economy, University of Chicago Press, vol. 129(1), pages 1-80.
    10. Alistair Dieppe, 2021. "Global Productivity," World Bank Publications - Books, The World Bank Group, number 34015, December.
    11. Rui HAO & Zheng WEI, 2009. "Sources Of Income Differences Across Chinese Provinces During The Reform Period: A Development Accounting Exercise," The Developing Economies, Institute of Developing Economies, vol. 47(1), pages 1-29, March.
    12. Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013. "Human Capital and Regional Development," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 105-164.
    13. BAH, Mamadou Mouminy, 2021. "Agglomeration Economies and Labour Misallocation in Cote d’Ivoire," MPRA Paper 109314, University Library of Munich, Germany.
    14. Ghosh, Saibal, 2013. "Do economic reforms matter for manufacturing productivity? Evidence from the Indian experience," Economic Modelling, Elsevier, vol. 31(C), pages 723-733.
    15. Rui Hao, 2011. "Sources of income differences across Chinese provinces during the reform period: a development accounting exercise," CERDI Working papers halshs-00557001, HAL.
    16. Alimov, Behzod, 2019. "Private debt, public debt, and capital misallocation," IWH-CompNet Discussion Papers 7/2019, Halle Institute for Economic Research (IWH).
    17. Dong, Zhanyu & Ma, Hongqi & Shen, Guangjun, 2021. "Estimating production functions using energy to control for unobserved utilization," Economics Letters, Elsevier, vol. 209(C).
    18. Gonzales-Rocha, Erick & Mendez-Guerra, Carlos, 2018. "Increasing productivity dispersion: Evidence from light manufacturing in Brazil," MPRA Paper 88478, University Library of Munich, Germany.
    19. Duranton,Gilles & Ghani,Syed Ejaz & Grover,Arti Goswami & Kerr,William Robert & Duranton,Gilles & Ghani,Syed Ejaz & Goswami,Arti Grover & Kerr,William Robert, 2015. "The misallocation of land and other factors of production in India," Policy Research Working Paper Series 7221, The World Bank.
    20. Francisco Queiró, 2022. "Entrepreneurial Human Capital and Firm Dynamics [How Large Are Human-Capital Externalities? Evidence from Compulsory Schooling Laws]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(4), pages 2061-2100.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:65:y:2018:i:c:p:131-142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.