Factors Influencing Productivity Growth in the Spanish Hotel Industry

Researchers at the University of Las Palmas de Gran Canaria have conducted a study on the factors influencing productivity growth in the Spanish hotel industry, focusing on the period from 1997 to 2019. Using the non-radial and non-parametric weighted Russell directional distance model (WRDDM), the study analyzed the contribution of each individual input to total factor productivity change, distinguishing between technical and efficiency change. The findings indicated that factors such as being affiliated to an international hotel chain or the market share of hotels have a significant effect on total factor productivity change, technical change, and efficiency change.

Key Takeaways:

• The study applied the non-radial and non-parametric weighted Russell directional distance model (WRDDM) considering an input orientation and the Luenberger productivity indicator to analyze the contribution of each individual input to total factor productivity change.
• The research found that productivity rose during the period from 1997 to 2019, with capital and labor productivity changes being behind this increase.
• Factors such as being affiliated to an international hotel chain or the market share of hotels have a significant effect on total factor productivity change, technical change, and efficiency change.
• The study used a linear dynamic panel data model to analyze the drivers of productivity, technical, and efficiency changes for each input.
• The research has been peer-reviewed and has significant implications for the Spanish hotel industry.

Statistics:

• Productivity in the Spanish hotel industry rose during the period from 1997 to 2019.
• Capital and labor productivity changes were behind the increase in productivity.
• Factors such as being affiliated to an international hotel chain or the market share of hotels have a significant effect on total factor productivity change, technical change, and efficiency change.
• The study analyzed the period from 1997 to 2019.

Sources:

• Hernandez-Guedes, C et al. Factors Influencing the Contribution of Each Individual Input To Productivity Growth In the Spanish Hotel Industry. Tourism Economics, 2025.
• NewsRx. New Tourism Economics Findings from University of Las Palmas de Gran Canaria Outlined (Factors Influencing the Contribution of Each Individual Input To Productivity Growth In the Spanish Hotel Industry). Economics Week. October 17, 2025; p 586.