Abstract

This study analyzes how regional public transport facilities and medical services affect the efficiency of international tourist hotels (ITHs). First, we adopt data envelopment analysis (DEA) to measure the cost efficiency of international tourist hotels in Taiwan during 1998 to 2009. Next, we use the truncated regression to estimate the effect of traffic convenience and medical services on cost efficiency. The distance to international airports and distance to MRT station have significantly negative effects on cost efficiency of international tourist hotels, while the distance to the freeway exit, distance to bus station, and pick-up service, chain system, and shorter operating year have significantly positive impacts on their cost efficiency. The shorter distance to the hospital and more hospitals in a region significantly improve cost efficiency of ITHs in Taiwan.

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