Sustainability, Vol. 11, Pages 5773: Evaluating the Performances of Taiwan`s International Tourist Hotels: Applying the Directional Distance Function and Meta-Frontier Approach (Sustainability)

This study employs the directional distance function in the meta-frontier model by expanding outputs, contracting inputs, and fastening quasi-fixed inputs simultaneously on a dataset of 170 observations obtained from the annual reports of international tourist hotels. Empirical results show that the meta-efficiency and technology gap (TG) of foreign-owned hotels are better than those of domestic hotels. In addition, employees of foreign-owned hotels are more productive than those of domestic hotels. The findings imply that Taiwan’s tourist hotels should structure a plan to augment their operating scales.