Aggregate Efficiency and Productivity Analysis in the Tourism Industry

Abstract

This paper presents a new methodology for analysing efficiency and productivity in the tourism industry in an aggregate context. More precisely, by using the directional distance function, an aggregate Luenberger productivity indicator for a group of tourist firms is proposed. Moreover, the possibility of the reallocation of inputs and outputs between the individual tourist firms in the group is considered. Finally, this new performance measure is illustrated by considering a group of hotels.