Application of Social Exchange Theory (SET) in Understanding Community Perception of Tourism Development: A Review Analysis
Year: 2026
Type: article
Abstract: Social Exchange Theory (SET) has been widely recognised as a dominant framework for studying how communities evaluate the impact of tourism in terms of perceived costs and benefits. Understanding community perception is a central concern in tourism research, particularly in the context of sustainable development, because without a supportive host community, it will be very difficult for the tourism industry to grow. This study provides a comprehensive review of how the community perceives the impact of tourism based on the application of SET. Drawing on a wide range of studies from different regions and time periods, this review highlights the key impacts of tourism development on the economic, socio-cultural, and environmental aspects. The review’s findings emphasise that community support for tourism is directly influenced by perceived benefits and costs. A positive perception is formed when the benefits associated with it outweigh the costs, and a negative perception is formed when the costs associated with it outweigh the benefits. Across the literature, the perception of tourism impact is rarely completely positive or negative. Most studies indicate that communities tend to support tourism when perceived benefits outweigh perceived costs, consistent with the principle of Social Exchange Theory. Further, the review shows how the SET evolved from an economic exchange model to a more comprehensive and integrated model that incorporates factors such as sustainable tourism development, community engagement, the importance of governance, trust, power relations, and institutional relations in shaping overall community attitudes toward tourism. This study also highlights significant research gaps, particularly the limited focus on developing regions, where there is a need to incorporate sustainability-oriented variables into the analysis. This study contributes to a deeper understanding of how the community perceives tourism’s impact and highlights directions for future research in tourism policy and planning.
Authors: Tenzin Chimey, Atege Linggi, Yab Camder
Institutions: Arunachal Pradesh University, Rajiv Gandhi University
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7164683089