Application of the DEA methodology in the analysis of efficiency of the Portuguese hotel industry: an analysis applied to the Portuguese geographical regions

Abstract

The main purpose of this paper is to analyze and to compare the
evolution of efficiency in the Portuguese hotel industry, by
geographical regions, in 2006 and 2008. It is also intended to find
companies which may be used as a reference to the least efficient
ones, to achieve higher levels of productivity.
Efficiency is analyzed through the study of technical productivity,
using a technique of linear programming: Data Envelopment Analysis
(DEA).
Contrary to the economic context, there is a general and significant
improvement in the productivity of the Portuguese hotel industry
from 2006 to 2008, with the exception of the insular regions. In 2006
there was a higher efficiency average in the northern and insular
regions whereas in 2008 only the northern region excelled. In the time
frame comprised by this research, 30 firms were found to be efficient:
7 in the north, 11 in the center, 5 in the south and 7 in the islands.