How tourism industry agglomeration improves tourism economic efficiency?

Abstract

The agglomeration of the tourism industry has important effects on its efficiency. This article used panel data on the Chinese provincial tourism industry for the 2011–2016 period, applied the location quotient index and three-stage data envelopment analysis method to, respectively, measure the degree of agglomeration and efficiency, and explained the impact of agglomeration on tourism efficiency. The empirical results of this study indicate the following. (1) China’s tourism industry shows a trend towards agglomeration, revealing gradient differences where the highest degree of agglomeration is in the eastern region, followed by the western and central regions. (2) After eliminating random and environmental factors, the adjusted efficiencies are lower than the unadjusted efficiencies. The average overall tourism efficiency is higher in the eastern region than in the central and western regions. (3) From the national perspective, industrial agglomeration can significantly improve the overall efficiency (TE), pure technical efficiency (PTE), and scale efficiency of the tourism industry. (4) Based on regional analysis, the agglomeration of the eastern tourism industry can significantly enhance its TE and PTE. Agglomeration for the western area has a significant positive impact on PTE. There is no significant relationship between agglomeration and efficiency in the central region.