Research On Tourism Enterprises Scale Efficiency Effect Factors

The growing amount of competition in the economy over the years has stimulated the process of the economies of scale in China’s tourism enterprises. However, the growth of the tourism enterprises’scale sometimes is accompanied by the declining profitability. And the large-scale tourism enterprises play an important role in the whole tourism economic development. Therefore, analysis of tourism enterprises’scale efficiency is significant for investors and managers, as it would be helpful for them to assess their performance according to the comparative efficiency scores. It is also very important from the point of view of the tourism management to make informed decisions about investment, and to allocate, monitor and evaluate the annual expenditure and service delivery. The paper on measurement the scale efficiency is not only a crucial supplement to the study of tourism economy of scale, but also a practical guideline when the enterprise is conducting the scale expansion in the future.The objective of this paper is to measure the scale efficiency of China’s tourism enterprises and explore the factors linking to their level of efficiency. Firstly, following the development of a literature-based review, the paper assessed the way in which certain characteristics of market and firms may affect the scale efficiency and proposed the relevant hypotheses. In particular, the study ascertained whether or not the firm’s performance, management costs or the tourism demand were the factors that affect its level of efficiency. Then the study analysed efficiency data gathered from2008to2012relating to20listed tourism companies, using the Super-efficiency Data Envelopment Analysis technique to measure their scale efficiency. Following the analysis, the paper employed the multiple linear regression method to verify the impact of these factors on the tourism enterprises’scale efficiency. Finally, taking Huatian Hotel as the case study, the paper examined the relationship between the factors and the levels of efficiency, in order to provide practical solutions for tourism enterprises’development. The conclusions found that expansion of tourism enterprises did not have the determined relationship with enhancing benefits, and a tourism firm right-size had a wider range of existence. Not only the theoretical analysis, but also empirical results illustrated that the level of internal management and external market environment influenced the effective size of the tourism enterprises. Especially when the enterprise expanded the size, the operating capacity came to be critical to the tourism enterprises’ scale efficiency. Through the found, the study emphasized the need to develop a more rigorous examination of the firm’s own ability when the tourism enterprises would expand their scale in the future.