Performance evaluation of the hotel industry in an emerging tourism destination

The case of Oman

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.

Original languageEnglish
Pages (from-to)60-68
Number of pages9
JournalJournal of Hospitality and Tourism Management
Volume29
DOIs
Publication statusPublished - Dec 1 2016

Fingerprint

data envelopment analysis
tourism
bootstrapping
benchmarking
ranking
evaluation
hotel industry
Performance evaluation
Hotels
Hotel industry
Tourism destination
Oman
analysis

Keywords

  • Bootstrap
  • Data envelopment analysis (DEA)
  • Hospitality management
  • Hotel performance
  • Oman
  • Truncated regression

ASJC Scopus subject areas

  • Tourism, Leisure and Hospitality Management

Cite this

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title = "Performance evaluation of the hotel industry in an emerging tourism destination: The case of Oman",
abstract = "This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.",
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AB - This study is concerned with evaluating the performance of the hotel industry in the Sultanate of Oman through a two-stage data envelopment analysis (DEA) procedure. In the first stage, DEA-bootstrap is used to estimate point and interval efficiency ratios of the hotels, identify the benchmark hotels and suggest a potential ranking. In the second stage, a truncated regression model based on the double bootstrapping procedure of Simar & Wilson (2007) is implemented to identify potential sources of hotels' operational inefficiency. In addition, an empirical approach is introduced to quantify the attractiveness of tourism destinations through a weighting scheme. The benchmarking analysis is carried out on a sample of 58 hotels, and revealed that (1) the majority of hotels in Oman are technically inefficient; (2) most of the efficient hotels are located in the capital, Muscat; (3) star rating and cultural attractions are the most important factors influencing hotels' efficiency. Practical implications of these findings are also discussed.

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