Determinants of Sustainable Tourism Efficiency: Evidence from East European Countries

Objective: In the first step, this paper aims to evaluate the tourism efficiency in East European Countries and later to identify factors that can determine the international tourism development in this European Region. Theoretical Framework: This study considers the impact of tourism demand on economic productivity (efficiency), with a particular focus on the role of sustainable tourism in driving economic development. Method: An input-oriented Data Envelopment Analysis model with a constant return to scale was applied for 6 years from 2014 to 2019 focusing on 22 countries in the area (except Kosovo due to lack of data) to estimate efficiency scores for each country. In the second stage, a Tobit Regression Model was used to stress the role of some characteristic factors influencing the efficiency of the international tourism industry. Findings: This study points out the greater attention of public and private institutions toward sustainability tourism (SDG target 8.9) associated with some factors such as environmental pollution (SDG target 3.9), friendly environment urbanization (SDG 11), educational level of the population (SDG 4), and tourism seasonality. Research implications: The study indicates that most East European Countries run inefficiently. Productivity is low, and efficiency needs to be improved in terms of capital- and labor production implementing consistently sustainable development principles.