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Internal and Locational Factors Affecting Hotel Industry Efficiency: Evidence from Italian Business Corporations

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  • Cristina Bernini
  • Andrea Guizzardi

Abstract

This paper investigates whether and how the competitive delay of the Italian hotel industry is influenced by the level of business corporation efficiency. A stochastic frontier production approach is proposed in which technical inefficiency is specified as a function of the internal and locational factors in a firm. The model is estimated on a balanced panel of tourism business corporations observed during 1998–2005. Estimates show that the competitive gap in the Italian accommodation system is not a result of poor business corporation performance, and the importance of location, human and immaterial capital is assessed as (in)efficiency determinants. The authors then suggest policies to improve the Italian tourist industry's competitiveness.

Suggested Citation

  • Cristina Bernini & Andrea Guizzardi, 2010. "Internal and Locational Factors Affecting Hotel Industry Efficiency: Evidence from Italian Business Corporations," Tourism Economics, , vol. 16(4), pages 883-913, December.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:4:p:883-913
    DOI: 10.5367/te.2010.0008
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    2. Puciato, Daniel, 2016. "Attractiveness of municipalities in South-Western Poland as determinants for hotel chain investments," Tourism Management, Elsevier, vol. 57(C), pages 245-255.
    3. Bo Zhou & Yanping Xu & Seul Ki Lee, 2019. "Tourism development and regional production efficiency: Evidence from southwestern China," Tourism Economics, , vol. 25(5), pages 800-818, August.
    4. Yaguo Deng & Helena Veiga & Michael P. Wiper, 2019. "Efficiency evaluation of hotel chains: a Spanish case study," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(2), pages 115-139, June.
    5. Antonio Arbelo & Pilar Pérez-Gómez & Marta Arbelo-Pérez, 2017. "Cost efficiency and its determinants in the hotel industry," Tourism Economics, , vol. 23(5), pages 1056-1068, August.
    6. Pin-Ju Juan & Shin-Yi Lin, 2013. "Selecting Resort Locations," Tourism Economics, , vol. 19(6), pages 1249-1272, December.
    7. Bernini, Cristina & Galli, Federica, 2023. "Innovation, productivity and spillover effects in the Italian accommodation industry," Economic Modelling, Elsevier, vol. 119(C).
    8. Manuela Pulina & Valentina Santoni, 2018. "A two-stage DEA approach to analyse the efficiency of the hospitality sector," Tourism Economics, , vol. 24(3), pages 352-365, May.
    9. Zutao Deng & Yan Gao & Bin Liang & Alastair M Morrison, 2020. "Efficiency evaluation of hotel operations in Mainland China based on the superefficiency SBM model," Tourism Economics, , vol. 26(2), pages 276-298, March.
    10. Marco Corsino & Enrico Zaninotto, 2012. "Revealing the influence of managerial practices and entrepreneurs' characteristics on hotel efficiency," DISA Working Papers 2012/03, Department of Computer and Management Sciences, University of Trento, Italy, revised May 2012.
    11. Claudio Detotto & Manuela Pulina & Juan Brida, 2014. "Assessing the productivity of the Italian hospitality sector: a post-WDEA pooled-truncated and spatial analysis," Journal of Productivity Analysis, Springer, vol. 42(2), pages 103-121, October.
    12. Daniel Puciato & Ewa Dziedzic, 2017. "Attractiveness of South-West Poland municipalities for independent hotel investors," Tourism Economics, , vol. 23(3), pages 702-711, May.
    13. Vincent Linderhof & Stijn Reinhard, 2012. "Do rural development program measures for the encouragement of rural tourism work? A spatial econometric analysis," ERSA conference papers ersa12p932, European Regional Science Association.
    14. Daniel Puciato & Piotr Oleśniewicz & Agnieszka Gawlik & Julita Markiewicz-Patkowska & Krzysztof Widawski & Teresa Słaby & Rafał Kasprzak & Barbara Mróz-Gorgoń, 2019. "Location factors for budget, medium standard and luxury hotels based on the example of hotels operating in Poland," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(1), pages 61-73.
    15. Arbelo-Pérez, Marta & Arbelo, Antonio & Pérez-Gómez, Pilar, 2017. "Impact of quality on estimations of hotel efficiency," Tourism Management, Elsevier, vol. 61(C), pages 200-208.
    16. Oliveira, Ricardo & Pedro, Maria Isabel & Marques, Rui Cunha, 2013. "Efficiency and its determinants in Portuguese hotels in the Algarve," Tourism Management, Elsevier, vol. 36(C), pages 641-649.
    17. Zha, Jianping & He, Lamei & Liu, Yang & Shao, Yuhong, 2019. "Evaluation on development efficiency of low-carbon tourism economy: A case study of Hubei Province, China," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 47-57.

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