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Productivity Measurement of Korean Hotel Industry

  • Journal of Tourism Sciences
  • Abbr : JTS
  • 2005, 29(2), pp.337-359
  • Publisher : The Tourism Sciences Society Of Korea
  • Research Area : Social Science > Tourism

Bong Young Hong 1 강은경 1

1서울여자대학교

Accredited

ABSTRACT

Efficiency alone may be a correct measure of the well-being of a hotel due to a major environmental transformation. Rapid technical progress could result in lower technical efficiency even if hotels were increasingly productive over time. This paper measures efficiency and productivity growth for a group of 31 large Korean hotels from 1999 to 2003, using data envelopment analysis. Authors found negative productivity growth at the rate of 3.32% per year on average and lower technical efficiency compared to 1999. There was technological regress over the period including the decline in pure technical efficiency change and scale efficiency change. The results indicate that technological innovation is necessary to offset the decrease in pure technical and scale efficiency.

Citation status

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