MANAGERIAL EFFICIENCY AND TECHNOLOGY GAP RATIO FOR METROPOLITAN AND NON-METROPOLITAN HOTELS IN TAIWAN: APPLICATION OF METAFRONTIER INPUT DISTANCE FUNCTION

Abstract

The study applies the concept of metafrontier to estimate and compare the managerial efficiencies and technology gap ratios (TGRs) for metropolitan- and non-metropolitan international tourist hotels (ITHs) in Taiwan during the year 1998-2008. The approach that metafrontier model is applied to estimate technical efficiencies for ITHs operating under different technology patterns and the technology gap ratios. Empirical results find that the non-metropolitan hotels have better operating or production efficient scores in managerial side than the metropolitan hotels. Furthermore, the estimations of metafrontier indicate that whether it is the technical efficiency of the common border or the technical gap ratio, hotels in foreign countries, chain cooperative hotels and domestic chain hotels perform better than independent hotels.