This paper analyses the evolution and determinants of regional labour productivity in the hospitality industry in Spain during the period 1996-2004. The results obtained suggest that the main factors contributing to a fall in productivity growth are the increasing number of 3-star hotels and a reduction in the stock of physical capital per worker. It is also suggested that increases in the intensity of regional tourism have a positive impact on the growth of labour productivity. Nonetheless, the downward trend in the average length of stay and the changes relating to seasonal demand during this period have not had a significant aggregate impact on the growth of labour productivity in the regions.
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