Current studies suggest focusing on the study of residents’ negative perceptions towards tourism. This study estimates a confirmatory model of structural equations based on variance. The negative perceptions of residents living in Fuengirola (Spain), divided into three dimensions (negative economic impact, negative social impact, and negative environmental impact), according to social exchange theory, and, also the residents’ loyalty to their city are considered to be predictors of residents’ happiness. We have proposed a construct of residents’ loyalty to their tourism destination residence as a novelty, being composed of two indicators. The model has been computed based on partial least squares-structural equation modeling. The following hypotheses have been tested: (a) negative perceptions have positive effects on each other; (b) negative perceptions have a negative effect on happiness; and, (c) residents’ loyalty has a positive effect on happiness. The hypotheses were not rejected. Moreover, the loyalty of the residents has the highest direct positive impact, while the negative impacts have weak negative effects, direct and indirect, on the happiness of the residents. The result of the positive relationship between place loyalty and happiness referred by those persons who perceive their living place (neighborhood) as prestigious is consistent with our findings, which is, an increase of loyalty was found to be associated with an increase in happiness.
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