Residents’ Perceptions of the Benefits and Costs of Tourism Development: A Case Study of Riyadh City (Saudi Arabia)

Abstract

This study examines residents’ perceptions of tourism development in Riyadh city, Saudi Arabia, focusing on its benefits and costs, guided by social exchange theory. The objective is to explore how the perceived impacts of tourism development, along with external factors such as community attachment, residents’ knowledge of tourism development, and community involvement, affect locals’ satisfaction with tourism and their intention to support tourism development. A survey of 427 locals, analyzed using structural equation modeling (SEM), reveals a positive correlation between community attachment and the perceived benefits from tourism. Residents’ knowledge about tourism is linked to perceived benefits, but not to perceived costs, and community involvement does not significantly impact perceptions. Perceived benefits positively influence support for tourism, while perceived costs have a negative effect. Residents’ satisfaction with tourism, shaped by their perceptions of the benefits and costs, influences their future support for tourism initiatives. The theoretical implications highlight social exchange theory’s role in understanding community perceptions, while the practical implications emphasize inclusive and transparent tourism planning to gain local support. These results underscore the importance of considering locals’ perceptions and satisfaction in both current and future tourism planning and development strategies.