Tourists' nationalities and the cost efficiency of international tourist hotels in Taiwan

Abstract

This paper analyzes the effects of tourist nationalities on the cost efficiency of international tourist hotels (ITHs) in Taiwan. From 1996 to 2007, the numbers of overseas Chinese and European tourists have shown significantly negative effects on cost efficiency, while the numbers of Taiwan Nationals, North American, Japanese, and Australian tourists have had significantly positive effects on cost efficiency. The numbers of the rest of Asia tourists (including mainland Chinese) have no significant effects on cost efficiency. Furthermore, the chain system and shorter distances to the nearest international airport significantly improve cost efficiencies.