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In this study, capacity utilization of tourism business-certified accommodation facilities divided into regions according to the Classification of Accommodation Facilities Regional Units of the Ministry of Culture and Tourism has been examined by Total Factor Productivity (TFP), Scale Efficiency and Pure Technical Efficiency change. The research covers the four years between 2014 and 2017. The Malmquist Total Factor Productivity Index approach was used in the analysis. The findings show that in 2014-2017, the capacity utilization of the hospitality sector has a downward trend in TFP. In this case, policymakers and investors should focus on the factors that are driving the TFP increase. The increase of TFP will be possible in the hospitality sector by improving and developing appropriate production technologies. In addition, it is necessary to improve operational efficiency (management and organization) in order to increase TFP. 85% of the 13 regions taken in the study are less than 1 TFV limit value. For these regions, especially technological development is the dominant factor affecting total factor productivity growth. Our study proposes a different perspective in the sector's capacity utilization efficiency and productivity assessment by using non-financial input and output variables in the hospitality sector. [ABSTRACT FROM AUTHOR]