Star-Rated hotel productivity in china: A provincial analysis using the DEA cross-Efficiency evaluation approach

The hotel industry in China has recently seen phenomenal growth, but despite this there has been criticism of its relatively ordinary service standards, which are thought to lag behind its more advanced hardware and infrastructure. Such unbalanced development could lead to less efficient operations and hence to less desirable industry performance. This study therefore aimed to examine star-rated hotel productivity in China on a provincial basis using the data envelopment analysis (DEA) technique based on the Banker-Charnes-Cooper (BCC) model with the extended cross-efficiency approach. The results indicate that cross-efficiency evaluation does provide an alternative to the major productivity indicators presented in The Yearbook of China Tourism Statistics (Shao, 2002–2007). The implications for managers are also discussed.