Revisiting Value and Satisfaction in Sustainable Homestay Tourism: Evidence from Southwest Nigeria

Abstract

Homestay tourism is increasingly recognised as a pathway to sustainable tourism development, especially in community-based destinations. This study examines the roles of local community attitudes and environmental sustainability in shaping perceived value and tourist satisfaction within Nigerian homestay tourism. Using a cross-sectional survey design, data were collected from 386 homestay tourists across south-western Nigeria and analysed with Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that local community attitude significantly boosts tourists’ perceived value, while environmental sustainability positively influences both perceived value and tourist satisfaction. However, perceived value does not strongly predict tourist satisfaction, and the moderating effect of community attitude on the relationship between value and satisfaction appears weak. This study contributes to the literature by integrating and extending the Theory of Planned Behaviour (TPB) beyond behavioural intention, demonstrating its relevance to understanding the formation of value–satisfaction in community-based tourism. It also challenges dominant tourism assumptions by showing that perceived value may serve as a supporting rather than primary determinant of satisfaction in rural homestay settings. In practice, the findings suggest that homestay operators and policymakers should focus on environmental sustainability practices and on enhancing experiential service quality, rather than relying solely on value-for-money propositions. By providing context-specific evidence from sub-Saharan Africa, this study advances sustainable tourism scholarship and offers strategic insights for inclusive rural tourism development.

1. Introduction

Tourism has become a crucial global economic force, yet this growth has also led to increased scrutiny of its environmental and social impacts. As a result, sustainability has gained prominence as an important indicator of tourism development. Among emerging sustainable tourism models, homestay tourism stands out for its ability to generate localised value, safeguard cultural heritage, and enhance tourist satisfaction. Unlike mass tourism, homestays provide immersive, community-based experiences that promote mutual understanding between tourists and residents. Additionally, these interactions enrich the travel experience while supporting community empowerment and the preservation of traditions (Rakpathum et al., 2025). Homestay tourism also supports the Sustainable Development Goals (SDGs), especially those focused on decent work, reduced inequalities, and responsible consumption. Involving residents directly in the hospitality value chain also stimulates local economies by creating jobs, fostering cultural commodification, and promoting environmental stewardship.

Value creation in tourism involves co-creating experiences between hosts and guests, resulting in reciprocal benefits that extend beyond financial gains. In the context of homestays, value emerges from authentic interactions, cultural learning, and emotional connections. Today’s tourists seek not only picturesque landscapes but also meaningful engagement with local people and their lifestyles. This enhances the travel experience while promoting mutual respect and cross-cultural understanding.

Empirical research highlights the significance of skills in promoting the sustainability of the tourism and hospitality industry, particularly in areas such as green, digital, and social competencies (Silva et al., 2025; Arilesere et al., 2021). When homestay operators possess these skills, they are better equipped to meet the needs of modern, eco-conscious travellers, implement responsible waste management practices, and leverage technology to enhance their services. Additionally, entrepreneurs’ values are increasingly acknowledged as influential drivers of sustainable business practices, especially in ecologically sensitive destinations (Teruel-Sanchez et al., 2025).

Previous studies on homestay tourism in Nigeria have mainly addressed broad issues, such as economic benefits, infrastructure, and overall tourist satisfaction, often overlooking deeper aspects, including environmental sustainability and community attitudes and engagement (Ijose & KC, 2025). Although these elements are increasingly recognised globally as vital to meaningful travel experiences, they have been significantly neglected in the Nigerian context. Resident attitudes are crucial for tourism sustainability (Ap, 1992; Tosun, 2006), yet studies on rural African homestays are limited and tend to concentrate on destination perceptions rather than the influence of community attitudes on tourist satisfaction (Rastegar, 2019; Hanafiah et al., 2013; Vujović et al., 2021). While environmental sustainability remains a key theme worldwide (Gössling et al., 2018; Madanaguli et al., 2023), its adoption in Nigerian homestays is hindered by infrastructure and knowledge gaps. Consequently, the connection between environmental practices and tourist experiences in Nigeria is underdeveloped. Nigeria, a developing nation, faces numerous challenges in its tourism sector that threaten the long-term sustainability of tourism across different states, especially in the northern region. Furthermore, limited attention has been paid to how local community participation and ownership in homestay operations can boost both cultural and economic value creation.

Furthermore, existing Nigerian tourism research has largely focused on economic contributions and general satisfaction outcomes, with limited empirical attention given to the psychological and evaluative mechanisms through which sustainability practices and community dynamics shape tourists’ perceived value and satisfaction. Although community participation is frequently acknowledged as essential to sustainable tourism, the specific role of local community attitude in shaping tourists’ evaluative judgments remains underexplored in sub-Saharan African homestay contexts. Similarly, while environmental sustainability is widely promoted as a competitive advantage in global tourism discourse, its practical integration into Nigerian homestay operations and its influence on tourists’ evaluative responses require further empirical examination.

To address these research gaps, this study adopts the Theory of Planned Behaviour (TPB) as the guiding theoretical framework. TPB posits that individual evaluations and behavioural outcomes are shaped by three core determinants: attitudes, subjective norms, and perceived behavioural control. While TPB has traditionally been applied to predict behavioural intention, its underlying cognitive structure provides a robust framework for understanding post-consumption evaluative judgments in tourism settings. Therefore, this study aims to address these gaps by examining how sustainability practices, along with local community attitudes and participation, impact tourists’ experiences in Nigerian homestay tourism. In doing so, it provides valuable, context-specific insights into the existing body of knowledge. It offers practical guidance for developing homestay models that are not only more sustainable but also inclusive and culturally enriching for both tourists and host communities.

2. Literature Review and Hypotheses Development

2.1. Theoretical Review

This study is anchored in the Theory of Planned Behaviour (TPB). The Theory of Planned Behaviour (TPB), developed by Ajzen (1991), provides a comprehensive framework for understanding how attitudes, subjective norms, and perceived behavioural control influence behaviour. In the context of homestay tourism, the Theory of Planned Behaviour (TPB) is particularly valuable for examining how tourists’ behavioural intentions—such as choosing homestay accommodations, engaging in cultural immersion, or supporting environmentally sustainable practices—are shaped by their underlying beliefs and social expectations.

First, the TPB explains how tourists’ attitudes toward local community involvement, environmental sustainability, and community engagement affect their perception of value. If tourists believe that staying in homestays provides authentic cultural experiences, supports local communities, and promotes sustainable practices, they are more likely to develop a favourable attitude toward choosing homestay accommodations (Han et al., 2010). Attitudinal influences are reflected in this study through the local community’s attitude. In homestay tourism, tourists’ perceptions of community friendliness, support, and engagement shape their overall evaluative assessments of the experience. Positive community attitudes can enhance tourists’ cognitive appraisal of authenticity and social exchange, thereby influencing perceived value formation.

Second, subjective norms or perceived social pressures play a significant role in shaping tourists’ decisions. In Nigeria, as social and global awareness of sustainable tourism increases, tourists may be encouraged by their peers, the media, or social movements to support homestays that demonstrate environmental responsibility and local community involvement. These normative beliefs can influence both domestic and international travellers to choose homestay experiences that align with sustainability and cultural values.

Third, perceived behavioural control affects tourists’ confidence in their ability to engage in these behaviours. For instance, tourists may want to support eco-friendly, community-owned homestays but may be limited by factors such as accessibility, affordability, or a lack of information. The TPB posits that the stronger their perceived control over these factors, the more likely they are to act on their intentions (Ajzen, 2002). By applying the Theory of Planned Behaviour (TPB) to homestay tourism in Nigeria, this study can examine how tourists’ behavioural intentions are formed and how these intentions influence their satisfaction and perceptions of value. The theory also helps to understand how homestay operators and local communities can shape these intentions by enhancing attitudes (e.g., through cultural experiences), aligning with social norms (e.g., community involvement), and increasing behavioural control (e.g., clear communication and accessible eco-friendly options). In doing so, it provides theoretically grounded and context-specific insights into sustainable homestay tourism in an emerging African economy.

2.2. Overview of Community-Based Homestay Tourism Development in Nigeria

Homestay tourism is a type of accommodation in which tourists stay with a host family, sharing living spaces and daily routines. This facilitates cultural exchange and immersive community interaction. Additionally, homestay tourism is a form of small-scale accommodation in which visitors live in a host family’s home, sharing spaces, routines, and cultural practices. Unlike traditional hotel lodging, homestays are woven into the destination’s socio-cultural fabric and are meant to encourage direct interaction between hosts and guests. Recent research highlights homestay tourism as a sustainable alternative to mass tourism. Madanaguli et al. (2023) emphasise that rural homestays often include environmental stewardship, cultural preservation, and community empowerment. Similarly, Rakpathum et al. (2025) argue that sustainable homestay development depends on community involvement, local governance, and the preservation of indigenous heritage, reinforcing the idea that homestays are more than just places to stay—they serve as vehicles for socio-economic development.

Conceptually, homestay tourism is closely associated with community-based tourism (CBT). CBT refers to tourism initiatives owned, managed, and controlled by local communities, with benefits retained within the area and decisions made through participatory governance structures (Lee & Jan, 2019; Regmi & Walter, 2016). Homestays operationalise the principles of CBT at the micro-enterprise level. They are typically locally owned and family-managed, ensuring that tourism revenue circulates within the host community rather than leaking to external corporations. This local ownership structure reinforces economic multiplier effects, supports rural livelihoods, and enhances community resilience (Uduji & Okolo-Obasi, 2023). Furthermore, social and cultural interaction form the core of the homestay tourism product. Unlike standardised hotel services, the value proposition of homestays lies in everyday cultural exchange—shared meals, storytelling, participation in farming or craft activities, and exposure to indigenous traditions. Similarly, Richards (2020) locates homestays within the broader context of value co-creation in sustainable tourism, where authenticity and relational experiences foster satisfaction more than transactional service quality.

Nigeria’s tourism framework began in 1990 and was revised in 2005. The LGTC was founded in 1992 to address community tourism issues nationwide. The NTDC Act governs tourism at all levels of government. NTDC, now under the Ministry of Tourism, improves management and GDP contribution. While seeking stakeholder cooperation, tourism remains underfunded and overseen by the Ministry of Information and Culture, with regional efforts managed by a dedicated Ministry of Tourism. Each Local Government Area has unique attractions, with natural assets across Nigeria’s zones (Bassey, 2015). Many African governments, recognising the importance of economic diversification, included tourism in their 2006 plans. Nigeria’s Master Plan aims to sustainably grow its cultural and natural resource-based tourism. Community-based homestay tourism involves local communities, emphasising local development, guest–host relations, and regional improvement to attract respectful tourists (Jamal et al., 2011; Lee & Jan, 2019). CBT preserves ecosystems (Birendra, 2021; Regmi & Walter, 2016), supports traditions (Lenao, 2015), empowers rural populations (Birendra & Thapa, 2025), and fosters cross-cultural understanding (Regmi & Walter, 2016).

In the Nigerian context, this linkage is particularly salient. Homestay tourism in Southwest Nigeria operates largely through informal or semi-formal family-based enterprises rooted in local culture and communal structures. As noted by Turčinović et al. (2025), community participation and ownership enhance perceived authenticity, strengthen cultural pride, and promote inclusive development. Therefore, homestay tourism can be theoretically positioned as a practical manifestation of community-based tourism, where economic empowerment, cultural preservation, and experiential authenticity converge. Rather than functioning merely as an accommodation model, homestays constitute a community-embedded tourism system in which social relationships, local governance, and sustainable practices jointly shape tourist value and satisfaction.

2.3. Local Community Attitude and Perceived Value Creation in Nigerian Homestay Tourism

Sustainable homestay tourism involves local communities managing, owning, or supervising destinations. Rai et al. (2021) describe homestays as small hospitality facilities that promote cultural exchange and foster connections with locals. They are a compelling, sustainable option for rural tourism (Acharya & Halpenny, 2013). Sustainable tourism, a core part of sustainable development, helps prevent the overexploitation of tourism resources (Hai & Almgir, 2017). It has become a priority for governments, businesses, and travellers worldwide, as they recognise tourism’s positive and negative impacts on the environment, society, and the economy. Community participation and ownership are recognised as fundamental pillars of sustainable tourism development, with far-reaching implications for economic empowerment, cultural preservation, and social cohesion (Tosun, 2006). In Nigeria, homestay tourism offers a significant opportunity for local communities, particularly in rural areas, to benefit directly from tourism revenue while maintaining control over cultural assets and resources (Ijose & KC, 2025). When community members engage in planning, managing, and profiting from homestays, the tourism product becomes more authentic and culturally rich, enhancing perceived cultural and economic value among tourists (Uduji & Okolo-Obasi, 2023).

Achieving long-term success in the tourism sector requires active support from the local community (C. H. Chin et al., 2022). The attitudes and perceptions of residents offer valuable insights for various tourism enhancement programmes (Ayachi & Jaouadi, 2017), which can improve tourist satisfaction and promote positive word of mouth (Hanafiah et al., 2013). Prior research indicates that local community engagement is a critical element of sustainable destination tourism (C. H. Chin et al., 2022). Local communities act as service providers; therefore, the friendliness of residents toward tourists is essential for enhancing tourist satisfaction (Harun et al., 2018), which directly influences tourists’ intentions to return and contributes to the sustainability of the tourist destination (Pekerşen & Kaplan, 2023).

Tourists visiting homestays that are visibly community-owned and operated often perceive greater cultural legitimacy and economic contribution, which boosts their satisfaction and willingness to support these destinations (Hoque, 2020). However, challenges remain, including limited capacity, governance issues, and potential conflicts over resource control, which may affect the effectiveness of community participation. Therefore, understanding the relationship between local community attitudes and perceived cultural and economic value in Nigerian homestay tourism is crucial for guiding policies and practices that promote satisfaction and sustainable development. Thus, we hypothesise the following:

H1. 

The local community’s attitude significantly influences the creation of perceived value in Nigerian homestay tourism.

H2. 

The local community’s attitude positively moderates the relationship between perceived value and homestay tourists’ satisfaction.

2.4. Environmental Sustainability Practices and Tourist Satisfaction in Nigerian Homestays

Environmental sustainability is an increasing concern in the global tourism industry, driven by rising awareness of climate change, biodiversity loss, and resource depletion (Gössling et al., 2018; Madanaguli et al., 2023). It is promoted by technological advances and environmental innovations in developed countries (Satrovic et al., 2025). In the context of Nigerian homestays, environmental sustainability involves adopting practices that reduce negative impacts on natural resources, such as conserving energy, minimising waste, managing water usage, and utilising eco-friendly materials. These practices are essential because many homestays are situated in rural or ecologically sensitive areas, where unsustainable tourism can damage ecosystems, threaten wildlife, and jeopardise local communities’ livelihoods. Studies have shown that tourist satisfaction often correlates with perceptions that accommodations support environmental sustainability, indicating a shift toward responsible, ethical travel preferences (Nwosu & Adeyemi, 2024). Tourists increasingly expect their stays not to harm the environment and want their spending to support conservation efforts. For Nigerian homestays, implementing sustainability measures not only helps preserve the natural attractions that draw visitors but also enhances the property’s reputation and competitiveness.

Gössling et al. (2018) meta-analysed 42 studies worldwide on the environmental performance of eco-accommodations and tourist satisfaction, finding a positive link between sustainability practices and guest satisfaction. Environmentally conscious tourists value these efforts, boosting return visits and brand image. Meanwhile, sustainable tourism aims to reduce environmental impacts and conserve natural resources (Jasrotia et al., 2023; Cottrell & Vaske, 2006). It enhances ecological sustainability and can increase tourist satisfaction, especially among environmentally conscious travellers (Jasrotia et al., 2023). Hosts can lower costs and demonstrate their commitment by adopting resource-efficient practices, such as water and energy conservation. Guests value responsible resource use, including serving organic, locally sourced, seasonal food, which deepens their cultural connection and enriches their homestay experience (Pehin Dato Musa & Chin, 2022; Raj et al., 2024).

However, the impact of environmental sustainability practices on tourist satisfaction in Nigerian homestays may differ due to variations in awareness, implementation capacity, and cultural attitudes toward conservation among homestay owners and communities. While some homestays may fully integrate green technologies and practices, others may struggle due to financial or knowledge limitations. Therefore, it is essential to investigate how these environmental practices affect tourist satisfaction to inform policy and encourage the broader adoption of sustainable tourism models in Nigeria. Therefore, our stance is as follows:

H3. 

Environmental sustainability enhances homestay tourist satisfaction.

H4. 

Environmental sustainability positively influences homestay perceived value.

2.5. Perceived Value and Tourist Satisfaction

Perceived value is defined as “the consumer’s overall assessment of the utility of a product (or service) based on perceptions of what is received and what is given” (Zeithaml, 1988). The perceived value of a product or service determines its worth in the buyer’s eyes. While tourist satisfaction is vital to the success of the homestay industry, it also impacts travel choices and the services and products utilised. Defined as a customer’s evaluative assessment of their purchase and consumption experience (Çetinkaya & Öter, 2016), it encapsulates “the overall feelings or attitudes a person has about a product after it has been purchased.”

The empirical relationship between value and satisfaction has been supported by numerous studies (Cronin et al., 2000; Eggert & Ulaga, 2002; McDougall & Levesque, 2000), thereby allowing for a clear differentiation between these two concepts. Although value can contribute to satisfaction, consumption value enhances satisfaction. It is essential to note that value and satisfaction are fundamentally distinct constructs; satisfaction may be attained even in the presence of suboptimal value, while dissatisfaction can arise independently of high value in a consumption context (Oliver, 1980).

Recent studies, including Pandža Bajs (2015), Cronin et al. (2000), Ryu et al. (2012), and Williams and Soutar (2009), have elucidated the importance of tourists’ perceived values and their satisfaction with tourism locations. The perceived value is determined by a tourist’s feelings and thoughts regarding the service or product purchased, according to Jamal et al. (2011). Elements such as cost, quality assessment, and emotional response constitute “perceived value” (P. T. Chen & Hu, 2010; Petrick, 2004; Olaleye et al., 2024). Pandža Bajs (2015), Moliner et al. (2007), and Petrick (2004) assert that tourists’ perceptions of a destination’s value influence their satisfaction, likelihood of return, and recommendations to others, and that these perceptions contribute to enhanced long-term sustainability.

The link between tourist satisfaction and the desire to revisit is strong; positive experiences often lead tourists to return to the same homestay, indicating that their contentment during the stay significantly influences this desire. Evaluating tourist satisfaction involves assessing the overall experience and its various components, which play a crucial role in the continuously expanding travel and tourism service industry (Bitner & Hubbert, 1994). Consistent with the perspectives of Woodruff and Gardial (1996), the perceived value in this study reflects an overall evaluation of the benefits received and the sacrifices made during the homestay tourism experience from both functional and experiential viewpoints. In contrast, satisfaction reflects visitors’ responses to their perceived value of this homestay tourism experience. Consequently, the proposed relationship between these two concepts is outlined as follows:

H5. 

The perceived value derived from the homestay tourism experience has a positive effect on tourist satisfaction.

Following the discussion above, this study proposes the conceptual model in Figure 1 below:

3. Materials and Methods

3.1. Design, Population, and Sampling Procedure

The study employed a descriptive cross-sectional survey design. A cross-sectional design was employed to examine the relationship among local community attitudes, tourists’ perceived value, tourist satisfaction, and environmental sustainability. A descriptive research design incorporating a quantitative approach was also selected. The target population comprised homestay tourism centres in the southwestern region of Nigeria and their visitors. The study was conducted in Southwest Nigeria, comprising Lagos, Ogun, Oyo, Osun, Ondo, and the Ekiti States. The selection of this region was theoretically and practically justified for several reasons. First, Southwest Nigeria is one of the most tourism-active regions in the country, hosting culturally significant attractions and heritage sites such as the slave trade in Badagry, the Lekki Conservation Centre, Erin-Ijesa Waterfalls, the Idanre Hills, and the Osun-Osogbo Sacred Grove. Hence, these destinations are characterised by active community participation and the presence of informal and semi-formal homestay accommodations.

Secondly, the region shows relatively higher levels of tourism infrastructure development than other geopolitical zones in Nigeria, making it a suitable setting for examining sustainability practices within operational homestay enterprises. Thirdly, homestay tourism in Southwest Nigeria is deeply rooted in local cultural and community structures. This makes the region particularly well-suited for investigating how community attitudes and environmental sustainability shape tourists’ evaluative judgments. Finally, focusing on a single geopolitical zone enhances contextual coherence while allowing for sufficient variability in tourism experiences across multiple states. This improves internal consistency without sacrificing generalizability within the Nigerian rural tourism context.

The questionnaires were self-administered using the drop-off-and-collection method. This approach involved the researchers travelling to deliver the questionnaires to a local representative, who subsequently distributed the surveys to the respondents and collected them upon completion. A multi-stage sampling procedure was employed to ensure adequate representation of tourists across selected homestay destinations. In the first stage, major tourism destinations within each of the six Southwest states were purposively selected based on their known homestay activities and visitor traffic. This purposive element ensured that data were collected only from locations where homestay tourism is actively practised.

In the second stage, tourists who had stayed in registered or community-based homestays within the selected destinations were approached using systematic convenience sampling. Respondents were screened to confirm that they had experienced a homestay during their visit. The third stage entails distributing 100 surveys, bringing the total proposed sample size to 600.

Meanwhile, the use of this approach is justified by the population’s accessibility, given that there is no centralised database of homestay tourists in Nigeria, making probability sampling impractical, and by the additional screening to ensure that only relevant respondents with direct homestay experience were included. Hence, this sampling strategy ensured both methodological rigour and contextual appropriateness, allowing for robust testing of the proposed research model.

Furthermore, 401 of the 600 questionnaires delivered to the representative were returned as complete. At the same time, fifteen were regarded as outliers, resulting in an actual sample size of three hundred and eighty-six (386) valid responses for the study, implying a response rate of 64.3 per cent.

The Taro Yamane formula was followed in order to determine the appropriate minimum sample size for the study.

$$\mathrm{n}={\displaystyle \frac{\mathrm{N}}{1+\mathrm{N}\mathrm{ }({\mathrm{e})}^2}}$$

• n = sample size;
• N = population under study;
• e = margin error (0.5).

$$\mathrm{n}={\displaystyle \frac{600}{1+600({0.05)}^2}}$$

$$\mathrm{n}={\displaystyle \frac{600}{2.5}}$$

n = 240

The actual sample size of 386 exceeded the determined sample size of 240 using Yamane’s formula; this implies that the responses are a good representation of the population.

3.2. Measures and Analytical Techniques

This study used a structured questionnaire adapted from previous research and validated through face validity. Initially, experts or knowledgeable academicians in hospitality and tourism reviewed the questionnaire to ensure the questions accurately reflected the topic, possibly pretending to fill it out and noting issues. Additionally, a psychometrician reviewed common errors, such as double-barrelled, confusing, and leading questions, to ensure they were excluded. Environmental sustainability was evaluated using a three-item scale derived from Iniesta-Bonillo et al. (2016); tourist satisfaction was assessed using a three-item scale adapted from Prayag et al. (2018); and perceived value was measured using five items, as referenced by C. F. Chen and Chen (2010). Simultaneously, the attitude of the local community was evaluated using three-item statements derived from Tosun (2006), employing a five-point Likert scale where 1 indicates “very poor” and 5 “excellent.” The scale measuring local community attitude was adapted from Tosun (2006) and included items assessing residents’ attitudes, friendliness, and staff behaviour in homestay facilities. All other scales used a five-point Likert scale, with 1 indicating “strongly disagree” and 5 indicating “strongly agree.” Moreover, Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to evaluate both the measurement and structural models. PLS-SEM was chosen for its suitability to models integrating formative and reflective constructs. Numerous scholars have recommended utilising PLS-SEM when a model comprises both types of constructs (Hair et al., 2011). Furthermore, the modest sample size prompted the adoption of PLS-SEM, given its appropriateness for analysing small samples.

4. Results

4.1. Descriptive Analysis

In this study, most participants were male (55.7%), single (44.3%), and over 40 years old, and a significant proportion held tertiary-level degrees (69.7%) as depicted in

Table 1. Demographics.

Measures	Items	Frequency (n = 386)	Percentage (%)
Gender	Male	215	55.7
	Female	171	44.3
Marital Status	Single	227	58.8
	Married	159	41.2
Age	18–30	64	16.6
	31–40	121	31.3
	41–50	166	43.0
	50 and above	35	9.1
Education	Diploma	76	19.7
	University degree	269	69.7
	Postgraduate degree	41	10.6
Reason for the homestay	Novel experience	202	52.3
	Work-related	94	24.4
	Holiday experience	90	23.3

. A large majority of respondents (52.3%) chose the homestay for its novelty. In comparison, other reasons for using the homestay services included work-related stays (24.4%) or being part of a broader holiday experience (23.3%).

4.2. Assessing the Model Using PLS

The PLS model is normally evaluated in two stages: measurement and structural model evaluation (W. W. Chin, 2009; Hair et al., 2011). The measurement model tests the validity and reliability of the relationships between latent variables (LVs) and the observable ones. Conversely, a structural model analysis focuses on the correlations between the constructs (W. W. Chin, 2009; Hair et al., 2011). This research paper critically tested the measurement model through a thorough analysis of discriminant and convergent validity, as well as the reliability of the scales used.

Table 2. Factor loadings, AVEs, and reliability of variables.

Latent Variables	Loadings (λ)	CA	rho_A	CR	AVE
Environmental Sustainability	EVS	0.817	0.823	0.891	0.731
EVS1	0.838 ***
EVS2	0.884 ***
EVS3	0.842 ***
Homestay Perceived Value	HPV	0.928	0.942	0.945	0.775
HPV1	0.844 ***
HPV2	0.839 ***
HPV3	0.941 ***
HPV4	0.918 ***
HPV5	0.857 ***
Homestay Tourist Satisfaction	HTS	0.758	0.768	0.862	0.676
HTS1	0.836 ***
HTS2	0.741 ***
HTS3	0.883 ***
Local Community Attitude	LCA	0.899	0.902	0.937	0.833
LCA1	0.937 ***
LCA2	0.904 ***
LCA3	0.897 ***

Note: χ² = 489.976, NFI = 0.796, d_ULS = 0.597, d_G = 0.344, and SRMR = 0.075. *** shows significant.

presents all the results systematically. The study also evaluated the validity of the measures. The composite reliability (CR) and Cronbach’s alpha are both greater than the recommended value of 0.7 (Hair et al., 2019). This result shows the accuracy of the scales used. The variance inflation factor (VIF) was used to assess the possibility of multicollinearity and overall methodological bias. According to Hair et al. (2019), VIF values below 3.0 indicate negligible multicollinearity and no significant methodological bias. There is no evidence of methodological biasness or multicollinearity since the VIF scores are between 1.047 and 2.664 across all the questions.

In this study, the square root of the average variance extracted (AVE), the factor loadings, and the AVE were used to assess convergent validity. The findings show convergent validity with loadings ranging from 0.741 to 0.941 (above 0.7) and an AVE of 0.5 or higher. Following the traditional rules, we used the criteria of Fornell and Larcker (1981) to justify the discriminant analysis results (see

Table 3. Discriminant validity of variables (Fornell–Larcker criterion).

Constructs	1	2	3	4
1. Environmental Sustainability (EVS)	0.855
2. Homestay Perceived Value (HPV)	0.255	0.880
3. Homestay Tourist Satisfaction (HTS)	0.421	0.251	0.822
4. Local Community Attitude (LCA)	0.213	0.745	0.276	0.913

Note: the bold figure in the diagonal represents the square root of the AVEs.

), which suggest that the square root of the AVE exceeds the correlations between the latent variables. In addition, we used the heterotrait–monotrait (HTMT) criterion so that the ratio of HTMT could not be more than 0.85, which is presented in

Table 4. Discriminant validity of variables (HTMT ratio).

Constructs	1	2	3	4
1. Environmental Sustainability (EVS)
2. Homestay Perceived Value (HPV)	0.284
3. Homestay Tourist Satisfaction (HTS)	0.529	0.308
4. Local Community Attitude (LCA)	0.237	0.796	0.334

, proving the high discriminant validity (Olaleye & Mosleh, 2025).

4.3. Structural Model Evaluation

The results of the Partial Least Squares Structural Equation Modelling (PLS-SEM) bootstrapping analysis are shown in Figure 2, and the graphical depiction of the slope is shown in Figure 3. Summary outcomes are provided in

Table 5. Hypothesis testing.

	Parameters	β	SE	t-Value	p-Value	R2	F2	Decision
	Direct effects
H1	LCA → HPV	0.723	0.045	16.012	0.000	0.565	1.148	S
H3	EVS → HTS	0.371	0.093	4.001	0.000	0.237	0.169	S
H4	EVS → HPV	0.101	0.050	2.039	0.041	0.565	0.023	S
H5	HPV → HTS	0.114	0.119	0.953	0.341	0.237	0.006	NS
	Indirect effect
H2	LCA_MOD_HPV → HTS	0.101	0.053	1.923	0.055	0.031		NS

Key: SE—standard error, NS—not significant; S—significant.

, which assesses the research hypotheses alongside the structural framework. The analysis confirms the research hypotheses. Specifically, the positive and significant link between Local Community Attitude (LCA) and Homestay Perceived Value (HPV) is supported by Hypothesis 1 (H1) (β = 0.723, t = 16.012). Also, data indicate LCA cannot sufficiently strengthen HPV’s positive influence on HTS (H2) (β = 0.101, t = 1.923, p > 0.001), thus not supporting Hypothesis 2. Furthermore, Hypothesis 3 (H3) (β = 0.371, t = 4.001, p < 0.001) suggests a positive, significant association between Environmental Value System (EVS) and Homestay Tourist Satisfaction (HTS). Hypothesis 4 (H4) also indicates that environmental sustainability positively influences perceived homestay value (β = 0.101, t = 2.039).

However, results for Hypothesis 5 (H5) show that while perceived homestay value is positive, it does not significantly impact tourist satisfaction (β = 0.114, t = 0.953). Additionally, moderation analysis reveals that LCA minimally enhances the positive effect of HPV on HTS, suggesting that the local community’s support in translating perceived value into tourist satisfaction is limited.

Cohen’s effect size (f²) analysis evaluated the influence of each independent variable on the dependent variable. Results in Table 5 show that EVS’s impact on HPV is small, and LCA’s moderating effect on HPV → HTS is also limited (effect sizes 0.02 ≤ f² = 0.023 and 0.031 < 0.15). Conversely, the paths from EVS to HTS and LCA to HPV have moderate, significant effects (effect sizes 0.015 ≤ f² = 0.169 ≤ 0.35; f² = 1.148 ≥ 0.35). The HPV → HTS path, however, shows a negligible effect (f² = 0.006), suggesting additional limitations.

5. Discussion and Conclusions

5.1. Discussion

Homestay programmes have emerged as a critical element of local tourism destinations and services, evolving beyond their initial function as service providers to become integral components of community economic growth and development initiatives. These programmes help homestays and local communities generate increased income levels. However, this research focused on measuring homestay tourism within the perceived value and satisfaction context while considering the local community’s attitude toward it.

Firstly, in line with Hypothesis 1 (H1), the local community’s attitude is said to influence the perceived value of homestays positively. The significance is attributed to factors like socio-cultural interactions with tourists and cultural preservation. Intense interactions between tourists and hosts foster significant socio-cultural exchange. Locals take pride in showcasing their culture and hospitality, while tourists express admiration and respect. This positive engagement encourages locals to connect more with future visitors (Aprilia et al., 2023; Huang et al., 2017; Rastegar, 2019). The local community recognises that their lifestyle and traditions attract visitors, and they are focusing more on their unique qualities to preserve their heritage against the influence of urbanisation. However, there is concern about the younger generation’s shift toward city lifestyles, which are often promoted by tourists, posing a potential threat to local traditions (Obradović et al., 2021; Rastegar, 2019).

Secondly, Hypothesis 2 is not statistically supported, as evidenced by the insignificant results obtained from the data collected from respondents. Specifically, HPV is insignificantly related to homestay tourist satisfaction; although the path is positive, the extent is insufficient to substantiate the relationship. This contradicts studies (C. F. Chen & Chen, 2010; Williams & Soutar, 2009) that show that the higher the value tourists perceive, the more positive their satisfaction and behavioural intentions are. Furthermore, the study by Rasoolimanesh et al. (2016) represents a notable theoretical and methodological advancement in the fields of homestay and perceived value research, evaluating perceived value as a comprehensive formative construct and exploring how overall perceived value influences the satisfaction of homestay guests.

Furthermore, the outcomes of this study indicate that environmental sustainability positively influences tourist satisfaction and the perceived value of homestays, as supported by Hypotheses 3 and 4, respectively. According to Hypothesis 3 (H3), the positive effects of sustainable tourism extend beyond the economic and environmental realms. It enhances the appeal of areas by preserving their natural beauty and cultural heritage, boosting tourist satisfaction and ultimately improving the overall quality of life for visitors. Our analysis also uncovered a significant positive impact of environmental sustainability on tourist satisfaction in homestays. Specifically, when tourists perceived the environmental benefits to outweigh the costs of using the homestay and acknowledged its sustainability, they tended to be satisfied.

Conversely, if they viewed the environment as unsustainable, their dissatisfaction grew, making them less likely to recommend the homestay to friends or return to the service. This study aligns with earlier research examining the impact of environmental sustainability on tourist satisfaction (Gössling et al., 2018; Jasrotia et al., 2023; Madanaguli et al., 2023). Thus, sustainable tourism acts as a catalyst for holistic development, fostering prosperity, cultural richness, and environmental stewardship within local communities. Hypothesis 3 posited a positive relationship between environmental sustainability and perceived homestay value.

The results of H5 indicate that perceived value has a positive but statistically insignificant effect on homestay tourists’ satisfaction. This suggests that although tourists who perceive more value tend to feel more satisfied, the connection is not strong enough to be considered significant in this context. This aligns with the expectation–confirmation theory (Oliver, 1980), which states that satisfaction results from confirmed expectations. In homestay experiences, perceived value is important. However, it may not be sufficient alone to generate high satisfaction; tourists might also weigh factors like emotional connection, authenticity, safety, and service reliability more heavily when evaluating their satisfaction. Given the balance between price and quality expectations, many homestays are already positioned as affordable alternatives to hotels.

The non-significant relationship between perceived value and tourist satisfaction may be explained by structural and contextual realities within developing tourism environments. First, infrastructure and service gaps—such as unreliable electricity supply, inconsistent water provision, transportation challenges, and perceived safety concerns—may dilute the translation of cognitive value assessments into affective satisfaction. While tourists may recognise fair pricing or cultural uniqueness (and thus report high perceived value), deficiencies in service reliability and physical infrastructure can undermine emotional fulfilment. In developing-economy contexts, satisfaction is often more sensitive to functional service quality and basic amenities than to evaluative trade-offs, suggesting that value perceptions alone may be insufficient to elicit strong affective responses.

Second, homestay tourism is inherently relational, meaning that satisfaction may derive more from emotional authenticity than from transactional value considerations. In community-based tourism settings, tourists frequently prioritise host warmth, cultural immersion, storytelling, and social bonding over cost–benefit calculations. Thus, even when perceived value is favourable, satisfaction may depend more heavily on relational authenticity and experiential depth. Third, from an expectation–confirmation perspective, satisfaction occurs when actual experiences exceed prior expectations. If tourists enter Nigerian homestay contexts with modest or uncertain expectations, perceived value improvements may not significantly elevate satisfaction unless experiences generate strong emotional confirmation. Collectively, these explanations suggest that in rural homestay settings, satisfaction may be shaped more by emotional and experiential dimensions than by cognitive value assessments alone.

Furthermore, perceived value is subjective and can vary depending on travellers’ expectations, cultural backgrounds, and past experiences. This variability can reduce its overall statistical influence on satisfaction. Additionally, homestay providers should consider diminishing returns; once a certain perceived value level is reached, further improvements may yield little additional impact on satisfaction. Overall, while perceived value remains a theoretically significant part of the tourist experience, the findings indicate that in this setting, it serves more as a supporting factor rather than a primary driver of satisfaction. This highlights the importance of homestay operators supplementing value-for-money with enhanced experiential quality, cultural engagement, and service excellence to improve satisfaction outcomes.

The findings indicate that the local community attitude has a positive, yet statistically insignificant, influence on the relationship between perceived value and homestay tourists’ satisfaction. Although the direction of this influence suggests that a favourable community attitude enhances the translation of perceived value into satisfaction, the lack of statistical significance calls for further research. While the local community’s attitude shows a positive moderating effect—meaning that better attitudes among locals tend to strengthen the link between perceived value and satisfaction—its effect is not statistically significant. This implies that, although community friendliness and support could improve tourists’ experiences, they are not decisive in how perceived value leads to satisfaction in this context. This outcome is likely due to the dominance of core service factors, in which satisfaction is more strongly influenced by tangible elements such as cleanliness, amenities, pricing, and host hospitality than by indirect factors like community attitude (Su et al., 2020). In other words, tourists might appreciate a friendly community but still primarily assess satisfaction based on the value-for-money experience offered by the host. Furthermore, in line with Hypothesis 2 (H2), some tourists may have limited contact with the broader local community outside the host or organised activities, which diminishes the potential for community attitudes to significantly influence the value–satisfaction relationship.

Although the moderation of local community attitude is statistically insignificant, its positive tendency remains meaningful in theory. This aligns with social exchange theory (SET) (Ap, 1992), which proposes that positive interactions between residents and tourists can enhance tourists’ experiential value. However, in the homestay context, satisfaction tends to be more directly influenced by core service attributes—such as accommodation quality, price fairness, and host behaviour—rather than peripheral factors like overall community disposition (Su et al., 2020). According to expectation–confirmation theory (Oliver, 1980), tourists’ satisfaction results from comparing expected with actual experiences. If tourists anticipate friendliness from local communities as a cultural norm, the actual positive attitude may not significantly differentiate satisfaction levels. This clarifies why the statistical impact might be weak, even if the underlying relationship remains positive. Therefore, insignificant moderation does not diminish its importance; it indicates that community attitude functions as a supplementary experiential factor rather than a primary driver of satisfaction. This implies that while local community friendliness remains desirable, managers should prioritise direct service quality, pricing, and host–guest engagement to more effectively enhance satisfaction.

5.2. Theoretical Contributions

At first, this study extends the Theory of Planned Behaviour beyond its traditional focus on behavioural intention to explain post-consumption evaluative mechanisms in sustainable homestay tourism. While prior TPB-based tourism research has primarily examined revisit intention or green hotel choice, this study demonstrates that TPB constructs can meaningfully explain value-formation processes in community-based rural tourism contexts.

Second, the findings refine the TPB’s predictive boundaries by revealing that perceived value does not significantly translate into tourist satisfaction in Nigerian homestays. This challenges the dominant tourism value–satisfaction assumption and suggests that satisfaction in community-based tourism may be driven more strongly by experiential authenticity, emotional connection, and service interaction quality than purely cognitive value assessments.

Third, by modelling local community attitude as a moderating construct, this study advances community-based tourism theory by positioning community disposition as a contextual amplifier rather than a structural determinant of satisfaction. The weak moderation effect indicates that while community friendliness enhances perceived value, it may not, on its own, strengthen satisfaction unless supported by tangible service quality. Collectively, these contributions provide a theoretically refined, contextually grounded framework for sustainable tourism models in emerging economies and expand the TPB’s explanatory scope in hospitality research.

5.3. Implications and Future Research

Homestay programme directors must ensure consumer satisfaction to attract more tourists. The perceived value of the experience is a key factor in tourist enjoyment, so organisers should prioritise it. Prior research suggests that many factors related to service environment value and satisfaction are ambiguous, hard to quantify, and difficult to define. Assessing tourism impressions is complex; using an experimental scale does not guarantee reliable outcomes. This is particularly crucial in the tourism industry, as travellers may hesitate to participate in a survey. Despite thorough efforts to ensure the authenticity and accuracy of the comments, some may not truly reflect the perspectives of travellers.

Homestay programmes in multicultural countries, especially in emerging economies like Nigeria, offer numerous benefits, particularly in eco- and cultural tourism. Friendly, supportive locals, combined with stunning natural landscapes and a rich cultural environment, create unforgettable experiences for tourists. Additionally, this service-oriented sector plays a key role in stimulating the local economy and improving the quality of life for many stakeholders. It also significantly promotes responsible tourism aimed at sustainable development.

A major benefit of homestay tourism is its potential to significantly enhance rural livelihoods. Since residents operate homestays in rural areas, the benefits ultimately strengthen the local economy and elevate residents’ quality of life. Growth in homestay tourism is expected to increase income, foster economic development, create more jobs, and decrease out-migration. Preserving local culture and traditions is another vital aspect of homestay tourism. Our study indicates that safeguarding local history and practising environmentally responsible tourism can support local economies and ensure their long-term viability. For tourism to thrive, locals need opportunities to engage with visitors, share their culture, and immerse themselves in their history and traditions. Such interactions allow travellers to gain a deeper cultural understanding and experience a more authentic connection with the local community.

Tourism authorities and homestay hosts should consider the uniqueness, functionality, emotional impact, and social relevance of their offerings, as these are crucial for impressing visitors. They must ensure that the lodging is sanitary, accessible, and serene, provides stimulating activities, includes a welcoming host family, and is financially feasible. However, their merits and demerits depend on their context. Our research provides context-specific data on Nigerian community-based homestay tourism, advancing the development of ideas in community-based tourism and hospitality. Host families and communities must ensure that tourists have unique and enjoyable experiences while fostering positive relationships with them. Improved service will encourage guests to return and recommend the homestay to their friends and associates. The study’s cross-sectional design enables replication, comparison with other similar situations, and longitudinal research, which will support our findings and demonstrate the applicability of the multidimensional value framework to tourism. The present study has overlooked potential mediators. Therefore, factors such as host–guest interaction quality, cultural authenticity, or service customisation might mediate the perceived value–satisfaction link more strongly than community attitude does. Additionally, it should consider the dynamic nature of community perception, in which tourists’ perceptions of local attitudes can be influenced by temporary factors (such as events, festivals, or economic pressures), potentially altering results over time.

5.4. Conclusions

Tourism, particularly homestay programmes, remains a vital sector in Nigeria’s developing economy. The response to these programmes has been encouraging, partly due to the government’s sustainable tourism initiatives. Although the tourist homestay experience is widely recognised as a crucial criterion for community-based and eco-friendly destination loyalty, little is known about how to measure its sustainable service practices in the hospitality industry. This study emphasises the importance of co-management frameworks over top–down models: all stakeholders—government, NGOs, academia, tour operators, and residents—must be involved in tourism planning and oversight. Including communities in decision-making helps strengthen local governance structures and build legitimacy, performance, accountability, and fairness in tourism development. Furthermore, Nigerian Tourism Authorities need to engage youth, as younger hosts bring innovation, social media marketing, and help modernise community tourism offerings. They also need to leverage digital tools by investing in digital literacy and ICT training to enable operators to manage online bookings, marketing, and administrative tasks effectively. Hence, by embedding community engagement, robust governance, youth-driven digital capacity building, and ecological planning into homestay tourism, Nigerian authorities and operators can significantly advance both sustainability and inclusive development. In conclusion, this study ultimately revealed that maintaining the perceived value of homestays and ensuring tourist satisfaction is essential, even though the relationship between homestay value and tourist satisfaction is not influenced by the local community’s attitude towards homestay tourism. Meanwhile, homestay programmes require more effective and efficient management processes, particularly in performance measurement, which is crucial to ensuring guest satisfaction and program sustainability.