Did the Financial Crisis and Policy Deregulation for Chinese Tourists Affect the Efficiency and Output Slacks of Taiwanese Hotels?



The financial crisis of 2008 caused the economic recession. In addition, restrictions on Chinese tourists to Taiwan were relaxed in July of 2008. The paper was to examine whether the financial crisis or the deregulation of Chinese tourists affected the performance of hotels in Taiwan. A metafrontier approach to data envelopment analysis (MDEA) was used in this paper to estimate the efficiency scores and metatechnology ratios (MTRs) of 84–99 international tourism hotels (ITHs) and standard tourism hotels (STHs) in Taiwan during the period ranging from 2005 to 2010. The results indicated that the MTR of ITHs with more service facilities was worse than that of STHs with specialised room revenue during the economic downturn. After the Chinese tourists policy deregulation, the MTR of ITH had increasingly outperformed that of STH. A truncated regression with a bootstrap procedure had examined the impact of macroeconomic and microeconomic variables on hotel efficiency and output slacks. In addition to the insignificant effects of the financial crisis on the efficiency of Taiwanese hotels, China/Taiwan tourism policy deregulation had a favourable influence on hotel efficiency, but mainly benefited on the occupancy rate, and unfavourable impact on the room revenue.


Data Envelopment Analysis Efficiency Score Data Envelopment Analysis Model Data Envelopment Analysis Approach Gross Domestic Product Growth Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.



We would like to thank Professor Manuela Sarmento (the conference chairperson), Professor Stephen Wanhill, Professor John Tribe, and other participants in the “Destination Management and Tourism Performance” session of the International Conference on Advances in Tourism Economics in 2011 (Universidade Lusíada de Lisboa, Portugal) for their helpful comments.

Financial supports from Taiwan’s National Science Council (NSC 100-2410-H-003 -005, NSC 99-2410-H-003-002) are also gratefully acknowledged.


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© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Graduate Institute of Hospitality ManagementNational Taiwan Normal UniversityTaipei CityRepublic of China

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