A two-way causal chain between tourism development and quality of life in a small island destination: An empirical analysis

This study postulates that tourism development (TD) and residents' quality of life (QoL) may have an intrinsically reciprocal relationship. More particularly, the study examines the relationship between TD and QoL for the island of Aruba, with economic development as a mediating variable. This investigation contributes to the literature by expanding our understanding of the development goal, and by emphasizing the active role of QoL in the relationship with TD through a subjective well-being approach. The study also provides a new methodological framework for studying the relevant bilateral relationships, and advances the theory through new propositions. The methodology consists of applying exploratory and confirmatory factor analyses combined with structural equations modeling. The results suggest that TD has a direct and indirect impact on QoL, and that QoL has an indirect effect on TD, via economic development. These findings provide new insights on the dimensions shaping the link between TD and QoL.