Excess capacity in hospitality sector drives up costs and inefficiency.
The article looks at how having too much space in hotels and restaurants affects their costs and efficiency in Norway. They studied data from 94 places over 11 years. They found that having too much space makes things more expensive and less efficient. The more extra space there is, the higher the costs get. Efficiency starts to drop when there's more than 50% extra space. Places in small towns and the North use their resources better than those in the South and West.