Room Occupancy Rate of Accommodation Establishments in Davao Region, Philippines: An Empirical Analysis
DOI:
https://doi.org/10.55927/eajmr.v3i7.9147Keywords:
Room Occupancy Rate, Accommodation, Davao Region, PhilippinesAbstract
This study was conducted to investigate what models could be developed in analyzing the Room Occupancy Rate (ROR) of accommodation establishments in the Davao Region. This investigation used a quantitative research method utilizing empirical analysis. The statistical tools used were the Bai and Perron multiple structural break test and One Least Squares (OLS) regression. Secondary data was utilized and the sources were from various government agencies and reliable websites. The key findings of this investigation include overall mean of 29.53% for the ROR of accommodation establishments in Davao Region between 2016 and 2022. Results revealed that the presence of three breakpoints happened in January 2019, January 2022 and March 2020. The OLS regression and Augmented Dickey-Fuller (ADF) test result exhibit that the sources and magnitude of the structural breaks are Public Safety with permanent effect, Regime with permanent effect, Earthquake with transitory effect and Health Crisis with permanent effect. The conclusions of this study imply that it just simplifies the actual events occurring in the Davao Region’s Accommodation Industry.
References
Adedoyin, F., Ozturk, I., Abubakar, I., Kumeka, T., Folarin, O., & Bekun, F. V. (2020). Structural breaks in CO2 emissions: Are they caused by climate change protests or other factors? Journal of Environmental Management, 266. https://doi.org/10.1016/j.jenvman.2020.110628
Alleyne, D., & Boxill, I. (2003). The impact of crime on tourist arrivals in Jamaica. International Journal of Tourism Research, 5(5), 381–391. https://doi.org/10.1002/jtr.444
Andini, F. H., & Koesrindartoto, D. P. (2020). Developing a Marketing Strategy to Increase the Occupancy Rate: Case Study Hotel XYZ. European Journal of Business and Management Research, 5(5). https://doi.org/10.24018/ejbmr.2020.5.5.534
Anichiti, A., Dragolea, L. L., Hârșan, G. D. T., Haller, A. P., & Butnaru, G. I. (2021). Aspects regarding safety and security in hotels: Romanian experience. Information (Switzerland), 12(1), 1–22. https://doi.org/10.3390/info12010044
Badri, S. A., & Kazemi, N. (2021). How Does the Hotel Quality Rate Influence the Preparedness against the Effects of Disasters? Journal of Quality Assurance in Hospitality and Tourism, 22(5), 591–613. https://doi.org/10.1080/1528008X.2020.1818357
Baldigara, T., & Koic, M. (2015). Modelling Occupancy Rates in Croatian Hotel Industry. International Journal of Business Administration, 6(3). https://doi.org/10.5430/ijba.v6n3p121
Bassil, C., Saleh, A. S., & Anwar, S. (2014). Is tourism in Lebanon subject to permanent or transitory exogenous shocks? Tourism Analysis, 19(6), 781–790. https://doi.org/10.3727/108354214X14146846679682
Berbekova, A., Uysal, M., & Assaf, A. G. (2021). A thematic analysis of crisis management in tourism: A theoretical perspective. Tourism Management, 86. https://doi.org/10.1016/j.tourman.2021.104342
Chan, E. S. W., & Lam, D. (2013). Hotel safety and security systems: Bridging the gap between managers and guests. International Journal of Hospitality Management, 32(1), 202–216. https://doi.org/10.1016/j.ijhm.2012.05.010
Chattopadhyay, M., & Mitra, S. K. (2019). Determinants of revenue per available room: Influential roles of average daily rate, demand, seasonality and yearly trend. International Journal of Hospitality Management, 77, 573–582. https://doi.org/10.1016/j.ijhm.2018.09.001
Creswell, J. W., & Creswell, J. D. (2018). Research design (5th ed.). SAGE Publications.
Cró, S., & Martins, A. M. (2017). Structural breaks in international tourism demand: Are they caused by crises or disasters? Tourism Management, 63, 3–9. https://doi.org/10.1016/j.tourman.2017.05.009
Davahli, M. R., Karwowski, W., Sonmez, S., & Apostolopoulos, Y. (2020). The hospitality industry in the face of the COVID-19 pandemic: Current topics and research methods. In International Journal of Environmental Research and Public Health (Vol. 17, Issue 20, pp. 1–22). MDPI AG. https://doi.org/10.3390/ijerph17207366
De Man, A. P. (1994). 1980, 1985, 1990: A Porter Exegesis (Vol. 10, Issue 4).
Denton, G., & Sandstrom, J. (2021). The Influence of Occupancy Change on Hotel Market Equilibrium. Cornell Hospitality Quarterly, 62(4), 426–437. https://doi.org/10.1177/1938965520953849
Dogru, T., Hanks, L., Mody, M., Suess, C., & Sirakaya-Turk, E. (2020). The effects of Airbnb on hotel performance: Evidence from cities beyond the United States. Tourism Management, 79. https://doi.org/10.1016/j.tourman.2020.104090
Dogru, T., Hanks, L., Suess, C., Line, N., & Mody, M. (2023). The resilience of the lodging industry during the pandemic: Hotels vs. Airbnb. International Journal of Hospitality Management, 109. https://doi.org/10.1016/j.ijhm.2022.103406
Dogru, T., Mody, M., & Suess, C. (2019). Adding evidence to the debate: Quantifying Airbnb’s disruptive impact on ten key hotel markets. Tourism Management, 72, 27–38. https://doi.org/10.1016/j.tourman.2018.11.008
Elsayed, M. R. A. E. (2023). The Impact of Climate Change on International Tourism: Evidence from Egypt. International Journal of Energy Economics and Policy, 13(2), 379–390. https://doi.org/10.32479/ijeep.14045
Gössling, S., & Lund-Durlacher, D. (2021). Tourist accommodation, climate change and mitigation: An assessment for Austria. Journal of Outdoor Recreation and Tourism, 34. https://doi.org/10.1016/j.jort.2021.100367
Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics. The McGraw-Hill Companies, Inc.
Harvie, C., & Pahlavani, M. (2006). An Application of the ARDL Sources of Economic Growth in South Korea: An Application of the ARDL Analysis in the Presence of Structural Breaks-1980-2005 Sources of Economic Growth in South Korea: An Application of the ARDL Analysis in the Presence of Structural Breaks. https://ro.uow.edu.au/commwkpapershttps://ro.uow.edu.au/commwkpapers/153
He, P., Qiu, Y., Wang, Y. D., Cobanoglu, C., Ciftci, O., & Liu, Z. (2019). Loss of profit in the hotel industry of the United States due to climate change. Environmental Research Letters, 14(8). https://doi.org/10.1088/1748-9326/ab2dce
Hegerty, S. W. (2022). Journal of Economics and Management Time-series dynamics of Baltic trade flows: Structural breaks, regime shifts, and exchange-rate volatility. https://doi.org/10.22367/jem.2022.44.05
Ihsan, B., & Alshibani, A. (2018). Factors affecting operation and maintenance cost of hotels. Property Management, 36(3), 296–313. https://doi.org/10.1108/PM-04-2017-0023
Soriano, Ma. J. G. (2022). Determinants of Sustainability among Beach Resorts. In Journal of Tourism, Hospitality & Culinary Arts (Vol. 14, Issue 3).
Kamińska, W., & Mularczyk, M. (2013). OCCUPANCY RATE OF ACCOMMODATION IN POLAND. Геология, Геоэкология, Эволюционная География. Коллективная Монография XIII, 260.
Kubickova, M., Kirimhan, D., & Li, H. (2019). The impact of crises on hotel rooms’ demand in developing economies: The case of terrorist attacks of 9/11 and the global financial crisis of 2008. Journal of Hospitality and Tourism Management, 38, 27–38. https://doi.org/10.1016/j.jhtm.2018.10.002
Lee, C. G. (2020). Are we explaining the movement of hotel room rates correctly? Tourism, 68(1), 21–33. https://doi.org/10.37741/T.68.1.2
Lei, W. S., & Lam, C. C. (2015). Determinants of hotel occupancy rate in a Chinese gaming destination. Journal of Hospitality and Tourism Management, 22, 1–9. https://doi.org/10.1016/j.jhtm.2014.12.003
Lin, Y. C., & Chen, C. M. (2022). How do hotel characteristics moderate the impact of COVID-19 on hotel performance? Evidence from Taiwan. In Current Issues in Tourism (Vol. 25, Issue 8, pp. 1192–1197). Routledge. https://doi.org/10.1080/13683500.2021.1910213
Mignonac, A., & Lind, H. (2012). Attracting Foreign Real Estate Investors to the Brazilian Hotel Market.
Miles, A. D. (2017). A Taxonomy of Research Gaps: Identifying and Defining the Seven Research Gaps.
Mitra, S. K. (2020). Estimating the duration of different seasons and their impact on hotel room prices. International Journal of Hospitality Management, 90. https://doi.org/10.1016/j.ijhm.2020.102604
Mohan, P. S. (2021). Sustainable tourism and the Sustainable Development Goals in sub-national island jurisdictions: The case of Tobago. Island Studies Journal, 1–22. https://doi.org/10.24043/isj.183
Mushtaq, R., Thoker, A. A., & Bhat, A. A. (2021). Does institutional quality affect tourism demand? Evidence from India. Journal of Hospitality and Tourism Insights, 4(5), 622–638. https://doi.org/10.1108/JHTI-05-2020-0088
Nagaj, R., & Žuromskaitė, B. (2020). Security Measures as a Factor in the Competitiveness of Accommodation Facilities. Journal of Risk and Financial Management, 13(5). https://doi.org/10.3390/jrfm13050099
Nik Mat, N. H., Omar, K., Zabidi, Z. N., Safrah Salleh, H., Yusof, Y., Mohamed, W. N., & Abdul Rani, I. N. F. (2019). FRAMEWORK FOR MANAGING THE CLIMATE CHANGE IMPACT IN MALAYSIAN HOTEL INDUSTRY. In Journal of Sustainability Science and Management (Vol. 14).
Perron, P., & Yamamoto, Y. (2015). Using OLS to estimate and test for structural changes in models with endogenous regressors. Journal of Applied Econometrics, 30(1), 119–144. https://doi.org/10.1002/jae.2320
Pinto, A., Bernardino, M., Santos, A. S., & Coelho, F. E. S. (2015). ASSESSING CLIMATE CHANGE IMPACT IN HOSPITALITY SECTOR. SIMPLIFIED APPROACH USING BUILDING RESOURCES CONSUMPTION SIGNATURE. 8th AECEF Symposium. https://www.researchgate.net/publication/284187664
Poprawe, M. (2015). A panel data analysis of the effect of corruption on tourism. Applied Economics, 47(23), 2399–2412. https://doi.org/10.1080/00036846.2015.1005874
Popșa, R. E. (2021). HOTEL INDUSTRY-TRENDS AND PERSPECTIVE IN THE CONTEXT OF COVID-19 PANDEMIC. www.statista.com
Porter, M. E. (1980). Competitive strategy techniques for analyzing industries and competitors. Free Press.
Rahmania, T., Pratiyudha, D., & Pariwisata Palembang, P. (2021). Compatibility of the Number of Room Attendant at Imara Hotel Palembang. 1(2). http://journal.poltekpar-palembang.ac.id/index.php/jh
Rindrasih, E., Witte, P., Spit, T., & Zoomers, A. (2019). Tourism and Disasters: Impact of Disaster Events on Tourism Development in Indonesia 1998-2016 and Structural Approach Policy Responses. Journal of Service Science and Management, 12(02), 93–115. https://doi.org/10.4236/jssm.2019.122006
Sami, J. (2021). International Journal of Economics and Financial Issues The Response of Hotel Room Occupancy Rate in Fiji to Shocks: Empirical Evidence from Unit Root Tests with Endogenous Multiple Structural Breaks. International Journal of Economics and Financial Issues |, 11(5), 2021. https://doi.org/10.32479/ijefi.6948
Soriano, G., & Joy, M. (2022). Determinants of sustainability among beach resorts/Ma. Joy G. Soriano. Journal of Tourism, Hospitality and Culinary Arts, 14(3), 90-104.
Shrestha, M. B., & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. Journal of Finance and Data Science, 4(2), 71–89. https://doi.org/10.1016/j.jfds.2017.11.001
Sönmez, S. F., Apostolopoulos, Y., & Tarlow, P. (1999). Tourism in crisis: Managing the effects of terrorism. Journal of Travel Research, 38(1), 13–18. https://doi.org/10.1177/004728759903800104
Srovnalikova, P., Semionovaite, E., Baranskaite, E., & Labanauskaite, D. (2020). Evaluation of the Impact of Sharing Economy on Hotel Business. Journal of Tourism and Services, 11(20), 150–169. https://doi.org/10.29036/jots.v11i20.145
Tang, J., Leelawat, N., Suppasri, A., & Imamura, F. (2019). An effect of tsunami to hotel occupancy: A case of Phuket, Thailand. IOP Conference Series: Earth and Environmental Science, 273(1). https://doi.org/10.1088/1755-1315/273/1/012033
Tuladhar, S. (2016). Impact of the Great Earthquake-2015 on Hospitality Industry of Nepal. The Gaze: Journal of Tourism and Hospitality, 7, 87–115. https://doi.org/10.3126/gaze.v7i0.15121
Tumbali, M. L. (2020). “SHARING ECONOMY” THE CASE OF AIRBNB IN NCR: AN HONESTLY SIGNIFICANT DIFFERENCE (HSD) TEST. Article in Journal of Tourism Hospitality and Environment Management. https://doi.org/10.35631/JTHEM.519008
Tumbali, M. V. L. (2020). IMPACT OF AIRBNB ON PHILIPPINE ACCOMMODATION SECTOR: A QUANTITATIVE APPROACH. Journal of Tourism, Hospitality and Environment Management, 5(21), 74–88. https://doi.org/10.35631/jthem.521005
Valadkhani, A., & O’Mahony, B. (2018). Identifying structural changes and regime switching in growing and declining inbound tourism markets in Australia. Current Issues in Tourism, 21(3), 277–300. https://doi.org/10.1080/13683500.2015.1072504
Wang, Y. S. (2009). The impact of crisis events and macroeconomic activity on Taiwan’s international inbound tourism demand. Tourism Management, 30(1), 75–82. https://doi.org/10.1016/j.tourman.2008.04.010
Wu, E. H. C., Law, R., & Jiang, B. (2010). Data mining for hotel occupancy rate: An independent component analysis approach. Journal of Travel and Tourism Marketing, 27(4), 426–438. https://doi.org/10.1080/10548408.2010.481585
Wulandari, A. W., Susanto, B., Triyuni, N. N., Sarja, N. L. A. K. Y., & Budarma, I. K. (2021). Contribution of online platform reservations to increase room occupancy at The Haven Hotel Bali Seminyak. International Journal of Green Tourism Research and Applications, 3(1), 1–8. https://doi.org/10.31940/ijogtra.v3i1.2071
Yang, Z., & Li, T. (2020). Does high-speed rail boost urban tourism economy in China? Current Issues in Tourism, 23(16), 1973–1989. https://doi.org/10.1080/13683500.2019.1696756
Yap, G., & Saha, S. (2013). Do political instability, terrorism, and corruption have deterring effects on tourism development even in the presence of unesco heritage? A cross-country panel estimate. Tourism Analysis, 18(5), 587–599. https://doi.org/10.3727/108354213X13782245307911
Zarei, A., Ariff, M., Hook, L. S. &, & Nassir, A. M. (2015). Identifying multiple structural breaks in exchange rate series in a finance research. Pertanika Journal of Social Sciences and Humanities, 23(S), 155–166. http://www.pertanika.upm.edu.my/
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Mylen Cano
This work is licensed under a Creative Commons Attribution 4.0 International License.
