Abstract

The aim of this paper is to examine the performance and efficiency changes of international hotels in Taipei. Data Envelopment Analysis (DEA) is applied to a sample of international hotels in Taipei between 2000 and 2015. Malmquist Index is used to evaluate the relative importance of productivity changes. Five input variables (i.e. numbers of rooms, number of employee at administration department, number of employee at F&B department, number of employee at room department, number of employee at other departments,) and one output variable: total revenues are used in this model. The results showed that 2008 financial crisis did strongly impact performance for international hotels in Taipei in terms of TEC, SEC and TFPC, but did not seem to have great impact on the Technical efficiency change (TEC), Technical change (TC), Pure technical change (PTC), Scale efficiency change (SEC) and Total factor productivity change (TFPC) for the international hotels in Taipei. It is found that the international hotel with highest total factor productivity change (TFPC) intensification is Imperial Hotel Taipei over the period of 2000-2015. On the contrary, First Hotel had the lowest total factor productivity change (TFPC). Managerial implications and suggestion are discussed in the final section.

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