How Tourism Development Leads to Residents' Subjective Happiness Through Their Quality of Life: A Social Exchange Theory Perspective

ABSTRACT The present research confirmed a comprehensive model for examining the connections between tourist development, subjective happiness, residents' quality of life, and support for sustainable tourism development. Study hypotheses were tested using a covariance‐based structural equation modeling analytical technique with 451 data points. The structural model found socio‐economic impact as the most vital antecedent of quality of life, followed by social impact, cultural impact, and environmental impact. In addition, social impact emerged as the most important predictor of subjective happiness, followed by cultural impact and quality of life. Moreover, the full mediating effect of residents' quality of life was confirmed in two paths, namely, socio‐economic impact to subjective happiness and environmental impact to subjective happiness. Finally, a study model confirmed a positive and significant effect of residents' quality of life on their support for sustainable tourism development. Theoretical and practical implications are discussed at large.