Composite indicators in evaluating tourism performance and seasonality

Abstract

This study proposes the use of the Gini index and the non-parametric method of Data Envelopment Analysis (DEA) for strategic planning and performance management in the Greek tourism sector. To attain our research effort, we use an innovative two-stage DEA bootstrap procedure to establish, among other determinants, the Gini coefficient in the light of tourism performance. According to our scale analysis a high turnover rate of low-skilled and badly paid seasonal jobs is an important challenge need to be addressed, by promoting full and productive employment. The results of the Simar and Wilson two stage analysis reveal that Greece’s seasonality and the number of overnights by domestic tourists are negatively related with tourism performance. In fact the global financial recession and the austerity measures implemented on the Greek economy had a high impact on the domestic tourism behavior. However this situation could be reversed through price differentiation and tax incentives. In contrast to domestic tourists, the number of inbound overnight stays is positively associated with tourism performance, as a result of the growth path from 2010 onward, of the world’s major economies. This trend must be further strengthened through alternative forms of tourism such as cultural tourism that needs more concentration on upgrading the attractiveness of museums and archaeological sites. © 2020, Springer-Verlag GmbH Germany, part of Springer Nature.