EFFICIENCY OF TOURISM DEVELOPMENT: APPLICATION OF DEA AND TOBIT MODEL
EFFICIENCY OF TOURISM DEVELOPMENT: APPLICATION OF DEA AND TOBIT MODEL

Author(s): Aleksandra Marcikic, Boris Radovanov
Subject(s): Economy, Tourism
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: DEA; Tobit Model; Tourism efficiency.
Summary/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.

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