Measuring the operational performance of international tourist hotels in Taiwan: A Simar and Wilson approach

This paper used data envelopment analysis (DEA) to evaluate the operational performance of international tourist hotels in Taiwan from 2003 to 2007 by combining operational and financial variables. In this paper an innovative DEA two-stage procedure proposed by Simar and Wilson[14] was used. In the first stage, a DEA model was used to estimate the efficiency scores of hotels. While in the second stage, a bootstrap truncated regression was used to induce the drivers of efficiency. The regressions can be tested the roles played, respectively, by the factors of location, whether to join an international hotel chain, and the annual number of inbound tourists. Some implications of the results were deduced.