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The moderating role of nationality in residents' perceptions of the impacts of tourism development in the United Arab Emirates

The purpose of this paper is to investigate residents' perceptions of tourism impacts and whether nationality moderates the relationship between these perceptions and support for tourism development in the UAE. Using data collected from 979
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  RESEARCH ARTICLE The moderating role of nationality in residents' perceptionsof the impacts of tourism development in the United Arab Emirates Nada Malalla Hammad  |  Syed Zamberi Ahmad  |  Avraam Papastathopoulos Management Department, College ofBusiness, Abu Dhabi University, Abu Dhabi,UAE Correspondence Syed Zamberi Ahmad, ManagementDepartment, College of Business, Abu DhabiUniversity, Abu Dhabi, UAE.Email: drszamberi@yahoo.com  Abstract The purpose of this paper is to investigate residents' perceptions of tourism impactsand whether nationality moderates the relationship between these perceptions andsupport for tourism development in the UAE. Using data collected from 979 respon-dents from the UAE, a questionnaire assessed the moderating effect of nationality onresidents' perceptions of the social, cultural, environmental, and economic impacts oftourism. Social exchange theory is used as a theoretical framework for this studybecause it considers the heterogeneity of a community and explains the differentperceptions held within it. The findings of this study show that nationality moderatesthe relationship between residents' perceptions of the impacts of tourism and theirsupport for tourism development in the UAE. Specifically, nationality moderates therelationship between residents' perceptions of negative social impacts, positivecultural impacts, and negative and positive economic impacts and their support fortourism development. This study can assist tourism officials in the UAE in developingstrategies that consider the diversity of a community with respect to the nationality ofits residents. KEYWORDS Emirati, nationality, residents' perceptions, social exchange theory, tourism development, UnitedArab Emirates 1  |  INTRODUCTION The UAE has become a popular tourism destination, as the totalcontribution of travel and tourism to the economy was USD 43.3billion in 2016, which is approximately 12.1% of the country's percapita gross domestic product (Turner & Freiermuth, 2017). Despitepolitical turmoil in the Middle East, the UAE reported a 4% increasein the number of arrivals in 2015 (World Tourism Organization(UNWTO), 2016), and tourist arrivals increased from 8.1 million in2006 to 15.3 million in 2016 (UAE Tourism Report ‐ Q1 2018, 2018).Tourism development in the UAE is part of the government's strategicplan for economic diversification away from dependency on oil, whichis a depleting resource and is governed by fluctuations in oil pricesthroughout the world. In 1974, the UAE's economy was 85%dependent on oil for its gross domestic product, but by 2014, thecontribution of oil had decreased to 30% (Statistical Center of AbuDhabi, 2018).This change in the UAE's economy has allowed the country tobecome a multicultural destination, with an overwhelming number ofexpatriate residents who were attracted to the country after thediscovery of oil versus a small number of national residents. TheUAE invested its returns from oil in major infrastructure projects,health care services, education services, and housing projects thattransformed the desert into modern cities that required a substantialnumber of workers and expertise that were unavailable in the UAE.This attracted many expatriates from neighboring countries andprovided opportunities for economic growth in many sectors, suchas real estate, construction, telecommunications, shipping and Received: 20 September 2017 Revised: 31 August 2018 Accepted: 3 September 2018DOI: 10.1002/jtr.2241 Int J Tourism Res . 2018;1 – 15. © 2018 John Wiley & Sons, Ltd.wileyonlinelibrary.com/journal/jtr  1  logistics, retail, finance, and tourism and hospitality. The expatriatesrepresent a growing community in the UAE, and they have becomethe dominant contributor to the workforce. In 2016, the estimatedEmirati workforce was only 7.19% compared with the remainingmajority expatriate workforce (UAEVision2021, 2018). Expatriateshave become an integrated part of communities, and they coexist withnational residents in the same destination. The involvement ofexpatriate residents extends to participation in various activities,including domestic tourism and the tourism workforce. Therefore, itis important to include the expatriates in analyses of the perceptionsof residents regarding the impacts of tourism.The tourism impact literature is dominated by investigations ofresidents' perceptions of the social, cultural, environmental, and eco-nomic impacts of tourism (Almeida ‐ García, Peláez ‐ Fernández,Balbuena ‐ Vázquez, & Cortés ‐ Macias, 2016; Andereck, Valentine,Vogt, & Knopf, 2007; Diedrich & García ‐ Buades, 2009; Dyer, Gursoy,Sharma, & Carter, 2007; Gursoy, Chi, & Dyer, 2010; Hammad, Ahmad,& Papastathopoulos, 2017a; Nunkoo & Gursoy, 2012), but few studiesassess the influence of the nationality of residents on their support fortourism development (Hernández & Mercader, 2015), especially inmulticultural destinations. In recent years, it has become more com-mon for people to live in a country other than the one in which theywere born and to keep their srcinal nationality. The reasons for thisinclude looking for better work opportunities, trying to improve one'slife conditions, and searching for new experiences. According to thedata from the United Nations, more than 244 million internationalmigrants in 2015 traveled to other countries in the search for betterliving conditions and work opportunities (United Nations, 2018). WuHongbo, UN Under ‐ Secretary ‐ General for Economic and SocialAffairs, claimed that the increasing number of migrants  “ has becomean integral part of our economies and societies ”  (p1) and that  “ well ‐ managed migration brings important benefits to countries of srcinand destination as well as to migrants and their families ”  (UnitedNations, 2018, p1).Extant studies focus on nationality's influence on tourists' percep-tions of various marketing strategies and tourists' satisfaction withtourism destinations (Jin, Hu, & Kavan, 2016; Kozak, 2001; Thrane &Farstad, 2012). Classifications of respondents based on nationalityhave often been used by researchers with tourists to investigate travelmotivations (Kozak, 2002; Peter & Anandkumar, 2014), spendinghabits (Thrane & Farstad, 2012), and satisfaction with destinations(Kozak, 2001). It is beneficial to understand the influence of national-ity on residents' perceptions of various impacts of tourism.Understanding the differences among disparate groups of residentscan provide information to policy ‐ makers and tourism stakeholdersregarding residents' perceptions of the impacts in tourism destinations(Andereck, Valentine, Knopf, & Vogt, 2005; Gursoy, Jurowski, & Uysal,2002; Long & Kayat, 2011; Sharpley, 2014; Sinclair ‐ Maragh, 2017;Sinclair ‐ Maragh, Gursoy, & Vieregge, 2015). This study addresses agap in the literature by investigating nationality as a moderator inexamining the influence of nationality on residents' perceptions ofthe impact of tourism and their support for tourism development. Thisstudy advances tourism research in the UAE and expands the tourismliterature on residents' perceptions of tourism's impacts by includingall nationalities of residents in the analysis, including both nationalsand expatriates in a multicultural destination. Including all groups ofresidents in the analysis can provide information to tourism officialsand policy ‐ makers regarding whether nationality is a relevant factorthat shapes the perceptions of residents regarding the impacts oftourism (Hernández & Mercader, 2015). This study thereforeaddresses two research questions: (a) What is the relationshipbetween residents' perceptions of tourism impacts and their supportfor tourism development in the UAE? (b) How does nationality moder-ate the relationship between residents' perceptions of tourism impactsand their support for tourism development? The answers to thesequestions will provide insights into the status of tourism developmentin the UAE and how different groups of residents perceive the impactsof tourism, which will enable tourism planners and governmentofficials to develop and offer customized programs, strategies, andpolicies to ensure that tourism development is sustainable, and thenegative impacts are minimized. 2  |  BACKGROUND INFORMATION ON THEUAE AND ITS SOCIETY  Located in the Middle East on the east side of the Arabian Peninsula,the UAE was established in 1971. The country consists of sevenemirates — Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, RasAl Khaimah, and Fujairah — and it lies within an 8 ‐ hr flight of two thirdsof the world's population. This strategic location has enabled the UAEto serve as a trade and transportation hub between the east and westfor many years.The UAE is diverse, but the country is primarily socially stratifiedby national residents, who represent the minority, and expatriate res-idents, who are the majority (Al Shamsi, 2009). Further classificationsof these two groups are based on class, social status, income, and pro-fession (Ahbabi & Al, 2016). Sarhan (1995) classifies the residents ofurban communities in the UAE into two groups before the discoveryof oil. The first was the influential group, consisting of the royal family,merchants, and ship owners. The second group consisted of commonworkers, such as pearl divers, ship repair laborers, farmers, andfishermen. Sarhan (1995) argues that after the discovery of oil, anew group emerged that had substantial wealth from oil income, realestate, and related trades. Another group that emerged was theemployee group, which itself has two classifications, high ‐ rankingand low ‐ ranking employees. Expatriate workers represent the majorityof the workface in the UAE, and they work as skilled, semiskilled, andunskilled workers.Rapid population growth in the UAE encouraged the governmentto consider tourism development as a driver of its economy diversifi-cation plan, especially because the government realized that oil is adepleting resource and is governed by price fluctuations throughoutthe world. Seven percent of the UAE's workforce worked in thetourism industry in 2015, and it supports 330,000 jobs (UAE TourismReport ‐ Q1 2018, 2018). According to the UAE Tourism Reportpublished in 2018, tourist arrivals in UAE increased from 8.1 millionin 2006 to 15.3 million in 2016. Table 1 shows the available data onthe total population in comparison to tourist arrivals in the UAE from2006 through 2016. 2  HAMMAD  ET AL .  3  |  LITERATURE REVIEW3.1  |  Impacts of tourism Tourism has various influences on the daily lives of residents in anytourism destination (Kim, Uysal, & Sirgy, 2013). Jafari (1985) arguesthat researchers focused on the positive economic contributions ofthe tourism industry during the 1960s. This focus continued intothe 1970s, but then the perspective changed, as researchers exam-ined the negative impacts on culture, communities' social structures,and the environment. Jafari (1985) explains that the research in the1970s questioned tourism itself rather than reporting findings regard-ing the impacts of tourism. During the 1980s, researchers used morebalanced approaches by reviewing the impacts of tourism from abroader perspective to enhance the understanding of residents' per-ceptions of the impacts of tourism. Since then, tourism research hasbenefitted from a proliferation of empirical and theoretical research(Almeida ‐ García et al., 2016). Most studies categorize tourism impactsinto social, cultural, environmental, and economic aspects — both pos-itive and negative (Almeida ‐ García et al., 2016; Dyer et al., 2007;Long & Kayat, 2011; Nunkoo, 2016; Rasoolimanesh, Ringle, Jaafar,& Ramayah, 2017; Ribeiro, Pinto, Silva, & Woosnam, 2017; Rivera,Croes, & Lee, 2016; Yolal, Gursoy, Uysal, & Kim, 2016). Support fromresidents is important for any region or country that seeks sustain-able tourism development (Gursoy et al., 2010). Residents' percep-tions of the impacts of tourism — positive or negative — influencetheir support for tourism development (Hammad, Ahmad, &Papastathopoulos, 2017b). Positive perceptions lead to strongsupport, and negative perceptions lead to less support for tourismdevelopment (Sharpley, 2014). The positive impacts of tourisminclude providing employment opportunities, improving services andinfrastructure, diversifying the economy, increasing the availabilityof cultural activities, promoting ecological protection, and improvingresidents' quality of life (Kim et al., 2013; Long & Kayat, 2011;Lundberg, 2017; Nunkoo & Ramkissoon, 2011; Rivera et al., 2016;Yu, Cole, & Chancellor, 2018). When residents perceive positiveimpacts of tourism, they are more supportive of tourism develop-ment. In light of the information provided above, the followinghypotheses are proposed: Hypothesis 1a.  Residents' perceptions of the positivesocial impacts of tourism correlate positively with their support for tourism development. Hypothesis 3a.  Residents' perceptions of the positivecultural impacts of tourism correlate positively with their support for tourism development. Hypothesis 5a.  Residents' perceptions of the positiveenvironmental impacts of tourism correlate positively with their support for tourism development. Hypothesis 7a.  Residents' perceptions of the positiveeconomic impacts of tourism correlate positively withtheir support for tourism development. The negative impacts of tourism include traffic jams, overcrowd-ing, increased crime, conflicts with society's values and traditions, anincreased cost of living, air pollution, vandalism of public property,and disturbed wildlife (Andereck et al., 2007; Brunt & Courtney,1999; Dyer et al., 2007; Jurowski, Uysal, & Williams, 1997; Látková& Vogt, 2012; Long & Kayat, 2011; Lundberg, 2017; Rasoolimanesh,Jaafar, Kock, & Ramayah, 2015). The research suggests that there isa relationship between residents' negative perceptions of the impactsof tourism and their support for tourism development. Therefore, thefollowing hypotheses are proposed: Hypothesis 2a.  Residents' perceptions of the negativesocial impacts of tourism correlate negatively with their support for tourism development. Hypothesis 4a.  Residents' perceptions of the negativecultural impacts of tourism correlate negatively with their support for tourism development . Hypothesis 6a.  Residents' perceptions of the negativeenvironmental impacts of tourism correlate negatively with their support for tourism development. Hypothesis 8a.  Residents' perceptions of the negativeeconomic impacts of tourism correlate negatively withtheir support for tourism development. 4  |  NATIONALITY AND TOURISMRESEARCH Nationality refers to membership in a country (Griffiths & Sharpley,2012) and is commonly used in cross ‐ cultural research to indicatebehaviors, beliefs, motivations, or perceptions (Jin et al., 2016). Li TABLE 1  UAE population and tourists (2006 – 2016)  Year Nationals' population (%) Expatriates population (%) Total population Tourist arrivals' % of total population 2006 851,164 17 4,161,220 83 5,012,384 8,089,000 1612007 877,741 14 5,341,265 86 6,219,006 8,797,000 1412008 904,857 11 7,168,769 89 8,073,626 9,468,000 1172009 933,381 11 7,266,615 89 8,199,996 9,378,000 1142010 947,997 11 7,316,073 89 8,264,070 10,502,000 1272016 9,121,167 15,311,860 168 Note . Compiled from Statistics Center of Abu Dhabi (2018), various years' statistics, and various years — UAE Tourism Reports (2018). HAMMAD  ET AL .  3  (2014) conducted a meta ‐ analysis of 91 articles of cross ‐ cultural tour-ism studies regarding tourist behaviors and perceptions, the majorityof which (i.e., 70) used nationality to measure cultural disparities aswell as other factors such as region, country of residency, ethnicity,and language. According to Li (2014), the most studied countries arethe United States, Japan, China, the United Kingdom, and SouthKorea, leaving a comparative lack of studies in the Arabic ‐ speakingcountries and the Middle Eastern countries. Tourism is an interna-tional phenomenon, and therefore, it is worth exploring different partsof the world to understand the perceptions of residents toward thevarious impacts of tourism.Nationality is used in tourism research to examine tourists' spend-ing habits while traveling, travel motivations (Jönsson & Devonish,2008; Kozak, 2002; Peter & Anandkumar, 2014), and satisfaction witha destination as well as its influences on host – tourist relationships(Griffiths & Sharpley, 2012). However, tourism researchers holddisparate views regarding the use of nationality or its equivalent as asegmentation criterion in the tourism literature (Thrane & Farstad,2012). Some studies suggest that nationality has the strongestinfluence on visitors' perceptions of tourism destinations (Prayag &Ryan, 2012), but others have found that nationality does not revealthe complexity of the relationship between host residents and tourists(Griffiths & Sharpley, 2012). Nationality influences tourists' percep-tions of crowding (Jin et al., 2016), and Thrane and Farstad (2012)found that it is one of the most important factors in explaining tour-ists' spending at a destination in Norway. Hernández and Mercader(2015) categorized residents into two groups based on nationality(i.e., nationals and nonnationals) when studying perceived tourismimpacts on residents in Torrevieja, Spain. Sinclair ‐ Maragh (2017)examined residents' ethnicity in relation to their support for tourismdevelopment in Jamaica. She reported that residents of Black/Africanethnic srcin were more supportive of tourism development, andtherefore, ethnicity was found to influence the reactions of residents.Similarly, Almeida ‐ García et al. (2016) found that national residentsand nonnational residents reported different perceptions of theimpacts of tourism in Spain. Although the extant literature shows thatnational and nonnational residents have disparate perceptions of theimpacts of tourism, the moderation influence of nationality has notbeen examined in the context of residents' perceptions of the impactof tourism. This study fills this gap by examining the followinghypotheses: Hypothesis 1b.  Residents' nationality moderates therelationship between residents' perceptions of thepositive social impacts of tourism and their support for tourism development. Hypothesis 2b.  Residents' nationality moderates therelationship between residents' perceptions of thenegative social impacts of tourism and their support for tourism development. Hypothesis 3b.  Residents' nationality moderates therelationship between residents' perceptions of thepositive cultural impacts of tourism and their supportfor tourism development. Hypothesis 4b.  Residents' nationality moderates therelationship between residents' perceptions of the nega-tive cultural impacts of tourism and their support for tourism development. Hypothesis 5b.  Residents' nationality moderates therelationship between residents' perceptions of the posi-tive environmental impacts of tourism and their supportfor tourism development. Hypothesis 6b.  Residents' nationality moderates therelationship between residents' perceptions of the nega-tive environmental impacts of tourism and their supportfor tourism development. Hypothesis 7b.  Residents' nationality moderates therelationship between residents' perceptions of thepositive economic impacts of tourism and their supportfor tourism development. Hypothesis 8b.  Residents' nationality moderates therelationship between residents' perceptions of thenegative economic impacts of tourism and their supportfor tourism development. 5  |  THEORETICAL BASIS There are a variety of theories and related conceptual models thathave been proposed to explain residents' perceptions of tourism,including the tourism area lifecycle (Butler, 1980), social exchange the-ory (Ap, 1992; Dyer et al., 2007; Gursoy et al., 2002), social identitytheory (Maruyama & Woosnam, 2015; Stets & Burke, 2010; Trepte,2006), identity theory (Nunkoo & Gursoy, 2012; Stets & Burke,2010), power theory (Kayat, 2002), and the social representations the-ory (Látková & Vogt, 2012; Moscovici, 1988). Based on a review ofthe tourism literature, social exchange theory has been usedextensively to explain residents' perceptions of the impact of tourism(Ap, 1992; Dyer et al., 2007; Gursoy et al., 2002; Gursoy & Rutherford,2004; Stylidis, Biran, Sit, & Szivas, 2014). This study has a similar focusand uses social exchange theory as the theoretical framework for twomain reasons. First, it is the dominant theory used when assessingresidents' perceptions of tourism impacts (Boley, McGehee, Perdue,& Long, 2014; Haley, Snaith, & Miller, 2005), and second, the theoryconsiders the heterogeneity of a community and explains the dispa-rate perceptions held in the same community (Latkova, 2008). Socialexchange theory is commonly used in the tourism literature toinvestigate residents' perceptions of tourism impacts. The basis ofthe theory is that people are willing to participate in an exchange ifthey anticipate that the gains or benefits that they will receive exceedthe costs or inconveniences that might result from the exchange(Maurer, 1977).Ap (1992) introduced social exchange theory to the tourismcontext to explain the exchanges between residents and the impactsof tourism. If residents believe that the positive benefits they receivefrom tourism exceed the costs associated with tourism impacts, theyare more positive about tourism, and they support tourism 4  HAMMAD  ET AL .  development to a greater degree (Ap, 1992). Social exchange theory isthe dominant framework in tourism research when investigating resi-dents' attitudes toward tourism impacts (Almeida ‐ García et al.,2016). The theory explains the relationship between individuals andgroups, in which exchanges of resources among residents, tourists,and tourism stakeholders lead to tangible and intangible benefits forthe residents, and the costs then do not exceed the benefits received.Jurowski et al. (1997) used the theory to develop a model that inte-grates the economic, social, and environmental impacts of those per-ceptions, suggesting that for economic gains, the use of tourismresources, protection of the natural environment, and communityattachment affect residents' perceptions and therefore their supportfor tourism. Gursoy et al. (2002) criticized the model for aggregatingthe tourism impacts into economic, social, and environmental aspectsand suggested expanding the model by segregating the impacts intobroader contexts, including costs and benefits. They found thatcommunity concerns, pro ‐ environmental values, resource use, andthe perceived costs and benefits affect residents' support for tourismin their communities. Gursoy and Rutherford (2004) argued that usingthe two dimensions of costs and benefits to investigate residents' sup-port for tourism limits the applicability of the findings. They extendedGursoy et al. ’ s (2002) model by including five areas of perceivedimpacts — economic benefits, social benefits, social costs, culturalbenefits, and cultural costs — and found that community concerns;pro ‐ environmental behaviors; the use of tourism resources; commu-nity attachment; the local economy; economic, social and culturalbenefits; and social costs directly and/or indirectly affect residents'support for tourism development in their communities.In a study conducted at the Sunshine Coast, Australia, Dyer et al.(2007) examined residents' perceptions of tourism using Gursoy andRutherford's (2004) impact scale and argued that the model shouldinclude negative socioeconomic, positive social, negative social,positive economic, and positive cultural impacts. Dyer et al. (2007)combined the negative social and economic impacts and did notinclude cultural costs, whereas Gursoy and Rutherford (2004) did notinclude economic costs but did include cultural costs. Although bothmodels include negative and positive impacts of tourism, the findingsare inconclusive. Miyakuni (2012) used social exchange theory to testa holistic model that explains residents' attitudes toward the impact oftourism. The model included the same variables of ecocentricattitudes, community attachment, and the use of tourism resourcesas variables that influence residents' perceptions of the negative andpositive economic, social, cultural, and environmental impacts oftourism. Miyakuni (2012) included personal economic benefits fromtourism development as a mediator between the exogenous andendogenous variables. The findings suggested a positive relationshipbetween environmental aspects and negative economic impacts anda negative relationship between residents' personal economic benefitsfrom tourism and negative economic impacts (Miyakuni, 2012). Thestudy also found positive relationships between residents' attitudestoward pro ‐ environmental behaviors and their perceptions of negativeeconomic, social, cultural, and environmental impacts. By developing amore comprehensive model, the current study uses negative and pos-itive social, cultural, environmental, and economic impacts of tourismto predict support for tourism development and includes nationalityas a moderator. The proposed model incorporates eight dimensionsof the impacts of tourism to predict support for tourism developmentwhile using nationality as a moderator to predict residents' percep-tions of the impacts of tourism. 6  |  METHODOLOGY 6.1  |  Procedure To examine residents' perceptions of tourism impacts, a structuralequation model (SEM) technique was adopted. According to Davcik(2014), there are two approaches to estimating the relationships inan SEM: covariance ‐ based SEM, which is based on covariancestructure analysis and latent variable analysis (CBSEM; Joreskog,1970), and the variance ‐ based method, which is known as the partialleast squares path model (Wold, 1982). Although the methods havethe same srcins (Jöreskog & Wold, 1982), they are not the same,and many researchers have applied these statistical procedures with-out comprehensively understanding their strict rules and assumptionsthat if not met can compromise the validity of the results (Davcik,2014). The main differences between CBSEM and variance ‐ basedmethod are presented inTable 2.In this research, we have chosen CBSEM because it is a confirma-tory analysis based on a priori knowledge with reflective psychometricconstructs only. All the constructs consist of four or more indicators.The sample size is large, with more than 10 observations per freeparameter. Finally, none of the measurement items had issues ofskewness and kurtosis, and all values were between  − 1.5 and +1.5(Tabachnick & Fidell, 2012).The final model is estimated using the multigroup analysis (MGA)technique, which is one of the most significant tools in structuralequation modeling (Hirschfeld & Von Brachel, 2014). The techniquewas used to estimate how nationality as the moderator affects therelationship between the way residents view the effects of tourismand their support tourism development. Briefly, SEMs using latentvariables arose due to the need to measure not directly observablemultidimensional concepts (latent variables or constructs, such as PSIor NSI) and to test the relationships between them (Bollen, 1989).Recently, SEM has been widely used in various fields, includingmanagement and tourism (do Valle & Assaker, 2016b). The literatureshows that a number of empirical studies have used SEM to examineprevious cases of support for tourism development, such as how eco-nomic, cultural, social, environmental, and sociodemographic effectsare perceived (Choi & Murray, 2010; Hammad et al., 2017a;Khoshkam, Marzuki, & Al ‐ Mulali, 2016; Lee, 2013; Moghavvemi,Woosnam, Paramanathan, Musa, & Hamzah, 2017; Nunkoo & So,2015; Ribeiro et al., 2017). In MGA, the moderator variable is categor-ical (usually two categories), and all the relationships in the innermodel may potentially be affected (F. Hair Jr, Sarstedt, Hopkins, &Kuppelwieser, 2014b). For example, the current research examinedwhether nationality (residents and expatriates) moderates the relation-ship between the way residents view the effects of tourism and theirsupport for tourism development in the UAE. Through the years, MGA has become more useful and relatively standardized (Hair, Babin, & HAMMAD  ET AL .  5
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