Page 31 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 1, 2020, pp. 31-50

MEASUREMENT OF THE EFFICIENCY OF AZERBAIJAN
REGION HOTEL ORGANIZATION: WINDOW ANALYSIS AND
MALMQUIST INDEX

Fuad Selamzade

Asts. Prof. Dr. Faculty of Health Sciences, Mus Alparslan University (MSU), Mus,
Turkey. E-mail: f.salamov@alparslan.edu.tr

Received 10 January 2020; accepted 22 May 2020; published online 10 July 2020

ABSTRACT:
In recent years, policies to develop tourism in the Republic of Azerbaijan have been
followed, and governmental level programs have been implemented to increase
competitive power in the tourism sector. The aim of study is to investigate the efficiency
changes of hotels and hotel-type accommodation organizations of 9 regions of Republic
of Azerbaijan with the data of 2006 to 2018 by using Window Analysis and Malmquist
Total Factor Productivity Index methods. Efficiency change measurements made
through Window Analysis method were made by using output oriented constant and
variable return models. In this study, average annual number of employees, total number
of rooms and total annual expenditures were used as input variable and number of
people placed, number of overnight stays and total amount of annual income were used
as output variable. According to the results of fixed and variable scale window analysis,
Nakhchivan A.R. was the only efficient region in all of the years of 2012 2018. In
addition, according to the results of both analyses, no region was efficient in 2010.
When examining the averages of all periods, it was observed a 1,1% decline in the TFP.
It could be said that this decline is due to the decrease in technical efficiency and
technological change. It is seen in the strategic planning for the socio-economic
development of the regions that there is a need to implement policies towards the
development of tourism and increasing the efficiency of hotel organizations.

Keywords: Tourism, Hotel Enterprises, Data Envelopment Analysis, Window
Analysis, Malmquist Index
JEL classification: L83, Z32, D61

INTRODUCTION
“The development of the tourism sector is among the priorities. State Tourism Agency
was established with the decision of the President of Azerbaijan, and for this purpose,
more government support was provided in this field. The number of tourists in
Azerbaijan increased by 22% in 2016, 20% in 2017 and 10% in the first half of 2018”

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