Evaluating Efficiency and Total Factor Productivity of Top Five Tourism Countries Using Malmquist DEA

Suneet Singh (), Saurabh Pratap and Snehal Laud
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Suneet Singh: IIT (BHU) Varanasi
Saurabh Pratap: IIT (BHU) Varanasi
Snehal Laud: Shri G. S. Institute of Technology and Science

A chapter in Advances in the Theory and Practice of Data Envelopment Analysis, 2025, pp 492-503 from Springer

Abstract: Abstract The present work examines the efficiency and Total Factor Productivity (TFP) changes in the tourism sector of the top five countries with the highest international visitors in 2022: France, Spain, USA, Italy, and Turkey. Focusing on the period from 2019 to 2022, the study employs an output-oriented Malmquist Data Envelopment Analysis (DEA) under the Variable Return to Scale (VRS) assumption to evaluate efficiency and TFP changes. The analysis uses international tourism receipts as the output and the number of people employed in the tourism sector and the number of international visitors as inputs, with data sourced from Statista and the World Travel and Tourism Council (WTTC). The results indicate a significant decline in TFP across all countries in 2020 due to the COVID-19 pandemic, except for the USA, which saw a 5.8% increase in TFP by reducing employment in the sector. The findings highlight the pandemic's impact on the tourism sector's efficiency and offer insights for managing inputs during future crises.

Keywords: Malmquist Data Envelopment Analysis; Technical efficiency; Total factor productivity; Travel and Tourism (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-3-031-98177-7_33

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DOI: 10.1007/978-3-031-98177-7_33

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