MEASURING TECHNICAL EFFICIENCY AMONG DEPARTMENT OF TOURISM (DOT) ACCREDITED RESORTS IN DAVAO REGION: APPLICATION OF DATA ENVELOPMENT ANALYSIS (DEA)

Clarence Joy D. Alcaraz, Lilibeth C. Aragon

Abstract


One of the most important players in the hospitality and tourism industries is the resort industry. Data envelopment analysis (DEA) allows measuring the variation in efficiency between resorts businesses and in a particular time period. Furthermore, this technique allows the identification of the possible sources of inefficiency. The study developed a methodology utilizing the capabilities of Data Envelopment Analysis that provides a reasonably accurate means of evaluating the technical efficiency of DOT-accredited resorts in the Davao Region. Results of the study reveal that 18 out of 23 DMUs classified as fully efficient comprising 82.61% while the other 5 DMUs are under-efficient constituting 17.39% in total. Moreover, demographic characteristic significantly contributes to the efficient performance of DOT-accredited resorts in the Davao Region. These demographic characteristics, such as provincial category, type of resorts, and accessibility, provide policymakers, industry stakeholders, and tourism associations with information regarding the state of the tourism industry in various provinces, the type of resorts, and the means of reaching the resorts (accessibility). These results enable more focused assistance and coordinated efforts to improve the region's competitiveness and sustainability.

 

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Data Envelopment Analysis (DEA), efficiency, dot-accredited resorts, Davao region

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DOI: http://dx.doi.org/10.46827/ejmms.v8i4.1661

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