A two-stage data envelopment analysis approach to productivity, efficiency and their sustainability in the hotel industry of Tunisia

Integrating sustainable practices to hotel industry is crucial to overall business and environmental sustainability. The productivity, efficiency, and their sustainability in hotel industry of Tunisia (years: 2014–2015) is analyzed using two-stage Data Envelopment Analysis. The study employed a bootstrapping method to correct possible bias associated with the efficiency scores. Tobit regression analysis was used to find the relationship between efficiency and sustainability indicators. In addition, Malmquist productivity index was adopted to estimate productivity. A comparison is done on the efficiency and productivity of touristic regions of Tunisia and the effect of the sustainability indicators like water consumption, tourism gross domestic product and poverty rate. Results show that Tunisian hotel industry has experienced decline in efficiency from 2014 to 2015. Further analysis shows that operational inefficiency is the root-cause of the underperformance rather than scale inadequacy. Water consumption and direct contribution of tourism to gross domestic product has a positive impact on the efficiency of the country’s hotel industry. Poverty rate negatively affects the efficiency of the country’s hotel industry. Integrated practices with operational improvement and sustainability practices are recommended as policy mechanism. To support required water and sustainability, water-recycling plants are also suggested, coupled with Corporate Social Responsibility projects. © 2022, The Author(s), under exclusive licence to Springer Nature B.V.