French Destination Efficiency

Abstract

The main aim of this article is to elevate the accuracy in reflecting the efficiency of tourism destinations. A mean–variance shortage function approach is applied to help destination management organizations (DMOs) minimize the instability and maximize the return of their inbound tourism. This approach seeks to identify tourists’ origins on which destination managers must allocate additional resources in order to ensure growth and stability of their destination. Empirical analysis is implemented in the case of France, which faces increasing competition. The results indicate that there is room for improvement for the French DMO to achieve the best performing strategy. But the main contribution of this article is methodological: the framework of this article offers tourism policy makers explicit and innovative guidelines for risk and performance management.