An Empirical Analysis of Efficiency in Accommodation Industry in Australian Tourism Regions

ABSTRACT

A body of empirical literature exists which sets out how the accommodation industry performs across a range of locations. However, research on tourism regions in terms of its accommodation industry remains underdeveloped, especially in the Covid-19 pandemic when tourism faced unprecedented adversity and need to find a way to move forward. In an attempt to address this and take the Australian accommodation industry as a case study, this paper sought to investigate the efficiency of Australian tourism regions in the accommodation industry for the period of 2014/15–2017/18. The findings clearly showed that Australian tourism regions had seen significant growth in terms of their efficiency in the accommodation industry over the surveyed period. The Australian commercial large cities, namely Sydney, Melbourne, Brisbane, and the Goal Coast, represent perhaps the best example, having obtained a higher efficiency than all other tourism regions. Exogenous factors, such as the occupancy rate, the average daily rate, the number of international visitors and the number of domestic visitors overnight were identified as influencing the technical efficiency score of tourism regions, with policy formulation and implementation identified as being key to improving the efficiency of the accommodation industry at the regional level for a post-Covid-19 period.

KEYWORDS:

• Accommodation industry
• Australian tourism regions
• data envelopment analysis
• fractional regression
• technical efficiency
• exogenous factors

Disclosure statement

No potential conflict of interest was reported by the author(s).