Efficiency Measurement of Tourism and Recreation Companies (Industry Code E51) Listed on the Indonesia Stock Exchange.

COVID-19 pandemic which the first outbreak was found on December 2019 in Wuhan, China, has given great impact to tourism industries worldwide. Since then, most countries implemented lockdown and quarantine system, issued tight regulations about travel restriction. In order to survive the COVID-19 pandemic, which the ending has yet to be determined, every tourism industry must be able to work efficiently to maintain the usage of operating costs as low as possible since the revenue could not be optimized. This research aims to measure efficiency score of 41 companies in Tourism and Recreation Industry (code E51) listed on Indonesia Stock Exchange (IDX) from 2018 to 2021. At the first stage, data envelopment analysis (DEA) method with variable-return-to-scale (VRS) input-oriented approach is employed to estimate technical efficiency scores. At the second stage, left-truncated regression estimation with double-bootstrap is employed to test the significance of some explanatory factors. Cost of Sales and Revenue, Operating expenses, Interest expenses, and Fixed Assets are chosen as input variables, while Sales and Revenue, Profit (Loss) from Operation, and Asset Turnover Ratio as output variables of DEA. The result shows that efficiency score dropped by 20.42% in 2020 compared to the score in 2019. A slight increase of 2.39% in 2021 compared to the score in 2020. Another result also denotes that several explanatory factors such as Stock Price positively affected efficiency score of, meanwhile Liability to Asset Ratio gave negative influences. Finally, this research may contribute to the development of operation and management science in hospitality and tourism field as well as to support the business operators to adjust their strategic plans, especially in financial budgeting, to face the long-impact of COVID-19 pandemic. Efficiency measurement using advanced DEA Double Bootstrap method with selected financial parameters that are different from any previous studies in tourism provides novelty to this research. [ABSTRACT FROM AUTHOR]