EFFICIENCY OF TOURISM DEVELOPMENT: APPLICATION OF DEA AND TOBIT MODEL
Aleksandra Marcikić Horvat - University of Novi Sad, Faculty of Economics Subotica, Segedinski put 9-11, Subotica
Boris Radovanov - University of Novi Sad, Faculty of Economics Subotica, Segedinski put 9-11, Subotica
DOI: https://doi.org/10.31410/tmt.2020.15
5th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2020, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-42-4; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: The main goal of this chapter is to evaluate the relative efficiency of tourism development in 33 European countries using a Two-stage DEA model for the seven-year time period. The output-oriented DEA model with a variable return to scale has been applied, with one input variable (government expenditure for travel and tourism (T&T)) and four output variables (average receipts per arrival, number of international tourist arrivals, T&T share of GDP and T&T share of employment). Results of the first stage showed that the lowest average efficiency scores were achieved in countries that recently joined the European Union, while a significant increase of efficiency is observed in the results of Western Balkan countries. The highest average efficiency score achieved countries in the EU15 group. Results of the second stage indicate the statistically significant relationships of the tourism efficiency scores with average international tourism receipt per arrival, tourism industry share of GDP and share of employment, government prioritization of tourism industry, visa requirements, number of rooms, rate of use and number of natural sites.
Keywords: DEA, Tobit Model, Tourism efficiency.
REFERENCES
Banker R.D., Charnes A., Cooper W.W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 9:1078–1092.
Chaabouni, S. (2019). China`s Regional Tourism Efficiency: A Two-Stage Double Bootstrap Data Envelopment Analysis. J. Destin. Mark. Manag. 11, 183–191, doi:10.1016/j.jdmm.2017.09.002.
Chen, H., Tsai, B., Liou, G. & Hsieh, C. (2018). Efficiency Assessment of Inbound Tourist Service Using Data Envelopment Analysis. Sustainability, 10, 1866. doi:10.3390/su10061866
Coelli, T. & Perelman, S. (1999). A Comparison of Parametric and Non-Parametric Distance Functions: With Application to European Railways. European Journal of Operational Research, 117(2): 326-39.
Gossling, S., Scott. D., Hall. M. (2020). Pandemics, tourism and global change: a rapid assessment of COVID-19, Journal of Sustainable Tourism, 29 (1), 1-20, doi.org:10.1080/09669582.2020.1758708
Greene, W.H. (2003). Econometric Analysis, 5th ed.; Prentice Hall: New Jersey, USA.
Grmanova, E.; Strunz, H., (2017). Efficiency of Insurance Companies: Application of DEA and Tobit Analyses. J. Int. Stud., 10(3), 250-263, doi:10.14254/2071-8330.2017/10-3/18.
Hadad, S., Hadad, Y., Malul, M. & Rosenboim, M. (2012). The economic Efficiency of the Tourism Industry: A Global Comparison. Tourism Economics, 18(5), 931-940.
Jacobs, R., Smith, P.C., & Street, A. (2006). Measuring Efficiency in Health Care: Analytic Techniques and Health Policy. Cambridge: Cambridge University Press.
Kosmaczewska, J. (2014). Tourism Interest and the Efficiency of Its Utilisation Based on the Example of the EU Countries. Acta Scientiarum Polonorum Oeconomia, 13(1), 77-90.
Kumar, S. & Gulati, R. (2008). An Examination of Technical, Pure Technical, and Scale Efficiencies in Indian Public Sector Banks using Data Envelopment Analysis. Eurasian Journal of Business and Economics. 1. 33-69.
Liu, J.; Zhang, J.; Fu, Z. (2017). Tourism Eco-efficiency of Chinese Coastal Cities—Analysis Based on the DEA-Tobit Model. Ocean Coast. Manag., 148, 164–170, doi:10.1080/09669582.2019.1699102.
Marcikić Horvat A., Radovanov B. (2016). Analiza efikasnosti razvoja turizma regiona primenom DEA metode, International Thematic Monograph – Thematic Proceedings: Modern Management Tools and Economy of Tourism Sector in Present Era, Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, Macedonia, Belgrade, Serbia. 115-127.
Martín, J.C., Mendoza, C., Román, C. (2015). A DEA Travel–Tourism Competitiveness Index, Social Indicators Research, pp. 1-21. DOI 10.1007/s11205-015-1211-3
Ozcan, Y.A. (2008). Health Care Benchmarking and Performance Evaluation: An Assessment using Data Envelopment Analysis (DEA), New York: Springer Science + Business Media.
Radovanov, B., Dudić, B., Gregus, M., Marcikić Horvat, A., Karovic, V. (2020). Using a Two-Stage DEA Model to Measure Tourism Potentials of EU Countries and Western Balkan Countries: An Approach to Sustainable Development. Sustainability, 12(12), 4903.
doi:10.3390/su12124903
Soysal-Kurt, H. (2017). Measuring Tourism Efficiency of European Countries by Using Data Envelopment Analysis. European Scientific Journal, 13, 10, 31-9.
Škrinjarić, T. (2018). Evaluation of Environmentally Conscious Tourism Industry: Case of Croatian Counties. Tourism, 66 (3), 254-268.
Tomić S., Marcikić Horvat, А. (2018). Evaluation of Efficiency in Tourism Industry, 3rd International Thematic Monograph – Thematic Proceedings, Modern Management Tools and Economy of Tourism Sector in Present Era, Association of Economists and Managers of
the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, Macedonia, Belgrade, Serbia. 289-298.
World Economic Forum. The Travel & Tourism Competitiveness Report 2013: Reducing Barriers to Economic Growth and Job Creation. Available online: http://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2015: Growth through Shocks. Available online: http://www3.weforum.org/docs/TT15/WEF_Global_Travel&
Tourism_Report_2015.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2017: Paving the Way for a More Sustainable and Inclusive Future. Available online: http://www3.weforum.org/docs/WEF_TTCR_2017_web_0401.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2019: Traveling and Tourism at a Tipping Point. Available online: http://www3.weforum.org/docs/WEF_TTCR_2019.pdf (accessed on 1st October 2020).
Keywords: DEA, Tobit Model, Tourism efficiency.
REFERENCES
Banker R.D., Charnes A., Cooper W.W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 9:1078–1092.
Chaabouni, S. (2019). China`s Regional Tourism Efficiency: A Two-Stage Double Bootstrap Data Envelopment Analysis. J. Destin. Mark. Manag. 11, 183–191, doi:10.1016/j.jdmm.2017.09.002.
Chen, H., Tsai, B., Liou, G. & Hsieh, C. (2018). Efficiency Assessment of Inbound Tourist Service Using Data Envelopment Analysis. Sustainability, 10, 1866. doi:10.3390/su10061866
Coelli, T. & Perelman, S. (1999). A Comparison of Parametric and Non-Parametric Distance Functions: With Application to European Railways. European Journal of Operational Research, 117(2): 326-39.
Gossling, S., Scott. D., Hall. M. (2020). Pandemics, tourism and global change: a rapid assessment of COVID-19, Journal of Sustainable Tourism, 29 (1), 1-20, doi.org:10.1080/09669582.2020.1758708
Greene, W.H. (2003). Econometric Analysis, 5th ed.; Prentice Hall: New Jersey, USA.
Grmanova, E.; Strunz, H., (2017). Efficiency of Insurance Companies: Application of DEA and Tobit Analyses. J. Int. Stud., 10(3), 250-263, doi:10.14254/2071-8330.2017/10-3/18.
Hadad, S., Hadad, Y., Malul, M. & Rosenboim, M. (2012). The economic Efficiency of the Tourism Industry: A Global Comparison. Tourism Economics, 18(5), 931-940.
Jacobs, R., Smith, P.C., & Street, A. (2006). Measuring Efficiency in Health Care: Analytic Techniques and Health Policy. Cambridge: Cambridge University Press.
Kosmaczewska, J. (2014). Tourism Interest and the Efficiency of Its Utilisation Based on the Example of the EU Countries. Acta Scientiarum Polonorum Oeconomia, 13(1), 77-90.
Kumar, S. & Gulati, R. (2008). An Examination of Technical, Pure Technical, and Scale Efficiencies in Indian Public Sector Banks using Data Envelopment Analysis. Eurasian Journal of Business and Economics. 1. 33-69.
Liu, J.; Zhang, J.; Fu, Z. (2017). Tourism Eco-efficiency of Chinese Coastal Cities—Analysis Based on the DEA-Tobit Model. Ocean Coast. Manag., 148, 164–170, doi:10.1080/09669582.2019.1699102.
Marcikić Horvat A., Radovanov B. (2016). Analiza efikasnosti razvoja turizma regiona primenom DEA metode, International Thematic Monograph – Thematic Proceedings: Modern Management Tools and Economy of Tourism Sector in Present Era, Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, Macedonia, Belgrade, Serbia. 115-127.
Martín, J.C., Mendoza, C., Román, C. (2015). A DEA Travel–Tourism Competitiveness Index, Social Indicators Research, pp. 1-21. DOI 10.1007/s11205-015-1211-3
Ozcan, Y.A. (2008). Health Care Benchmarking and Performance Evaluation: An Assessment using Data Envelopment Analysis (DEA), New York: Springer Science + Business Media.
Radovanov, B., Dudić, B., Gregus, M., Marcikić Horvat, A., Karovic, V. (2020). Using a Two-Stage DEA Model to Measure Tourism Potentials of EU Countries and Western Balkan Countries: An Approach to Sustainable Development. Sustainability, 12(12), 4903.
doi:10.3390/su12124903
Soysal-Kurt, H. (2017). Measuring Tourism Efficiency of European Countries by Using Data Envelopment Analysis. European Scientific Journal, 13, 10, 31-9.
Škrinjarić, T. (2018). Evaluation of Environmentally Conscious Tourism Industry: Case of Croatian Counties. Tourism, 66 (3), 254-268.
Tomić S., Marcikić Horvat, А. (2018). Evaluation of Efficiency in Tourism Industry, 3rd International Thematic Monograph – Thematic Proceedings, Modern Management Tools and Economy of Tourism Sector in Present Era, Association of Economists and Managers of
the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, Macedonia, Belgrade, Serbia. 289-298.
World Economic Forum. The Travel & Tourism Competitiveness Report 2013: Reducing Barriers to Economic Growth and Job Creation. Available online: http://www3.weforum.org/docs/WEF_TT_Competitiveness_Report_2013.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2015: Growth through Shocks. Available online: http://www3.weforum.org/docs/TT15/WEF_Global_Travel&
Tourism_Report_2015.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2017: Paving the Way for a More Sustainable and Inclusive Future. Available online: http://www3.weforum.org/docs/WEF_TTCR_2017_web_0401.pdf (accessed on 1st October 2020).
World Economic Forum. The Travel & Tourism Competitiveness Report 2019: Traveling and Tourism at a Tipping Point. Available online: http://www3.weforum.org/docs/WEF_TTCR_2019.pdf (accessed on 1st October 2020).
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