In this study, we aim to extend the application of the Bayesian stochastic frontier
to analyse the efficiency of Luanda hotels. Despite the advantages of this method, the
literature indicates that most existing studies are still based on the traditional stochastic
frontier model. In using a more advanced methodology, this study also aims to crossvalidate
previous research undertaken on African hotels with DEA models (Barros &
Dieke, 2008). On a macro perspective, the importance of tourism for economic development
throughout the African continent is well documented. It was reported that only
those African countries that adopted a tourism strategy converged towards the US real
product per capita (Cun˜ado & Pe´rez de Gracia, 2006). This finding underlines the need
for tourism to be taken more seriously by African countries when thinking in terms
of growth.