An Analysis of Management Efficiency ofForeign Tourism Industry by City in Korea

Da-Yeon Kang, Ki-Se Lee · National Association of Korean Local Government Studies · 2024

This study analyzed the management efficiency of the foreign tourism industry for each city in Korea. Data were used as of 2022, the time point after COVID-19. Input variables are the number of tourism companies, tourist destinations, major tourist destinations recommended by the Korea Tourism Organization, and the number of foreign visitors. Output variables are the number of foreign visitors and foreign consumption expenditure. As for the analysis method, the data were analyzed as an input-oriented model by applying the BCC-I model and the CCR-I model among the DEA models. As a result of the study, Seoul, Incheon, Daejeon, and Sejong Special Self-Governing City were efficient in the BCC model, while Seoul and Incheon were highly efficient in the CCR model. In terms of scale efficiency, it was confirmed that Seoul and Incheon were operated efficiently, and as a result of scale profitability, three were found to be CRSs, and 15 were found to be IRSs. In addition, Seoul Metropolitan City, Incheon Metropolitan City, and Sejong Metropolitan City were identified as having a high frequency of reference sets that could be benchmarked for efficient management, and inefficient cities presented improvement rates for efficient management.

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