Efficiency of the Malaysian Hotel Industry: a Distance Function Approach

• Ali Salman Saleh ^[1] ; A. George Assaf ^[2] ; Hong Son Nghiem Nghiem ^[3]
  1. [1] Swinburne University of Technology

     Swinburne University of Technology

     Australia

     
  2. [2] University of Massachusetts System

     University of Massachusetts System

     City of Boston, Estados Unidos

     
  3. [3] University of Queensland

     University of Queensland

     Australia

     

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• Localización: Tourism analysis, ISSN 1083-5423, Vol. 17, Nº. 6, 2012, págs. 721-732
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This article introduces the distance function approach with both the DEA bootstrap and Sf methods to examine the efficiency of the hotel industry in malaysia. The DEA results reveal that, on average, the malaysian hotels under investigation are 66% efficient compared with the best practices in the industry. It is also shown that large hotels are relatively more efficient than small hotels. After taking into account the differences in size and operational practices (proxies by the availability of a food and beverage operation), the average efficiency of malaysian hotels rose to 83%. It seems also that the inclusion of a food and beverage operation is a source of inefficiency, especially for small hotels.