Residents Perceptions of the Impact of Major Annual Tourism Events in Macao: Cluster Analysis

Transcription

1 Journal of Convention & Event Tourism, 12: , 2011 Copyright Taylor & Francis Group, LLC ISSN: print / online DOI: / Residents Perceptions of the Impact of Major Annual Tourism Events in Macao: Cluster Analysis SANDY C. CHEN Hospitality Management, College of Business, Oregon State University-Cascades Campus, Bend, Oregon This study examines how local residents perceive major tourism events in Macao, China. A cluster analysis revealed three clusters of residents with distinct views toward these events. Although the similarities of the major findings to those in previous studies are apparent, this study extends the others by identifying a new factor regarding the impact of events on a community. Also, unlike other studies that have focused on a single event, this study looked at a set of major events, thereby providing decision makers a more complete view of event tourism in a community. KEYWORDS residents perceptions, event tourism, community tourism, impact of event tourism The importance of staging events in tourism was not widely recognized by the industry until the late 1980s (Fredline & Faulkner, 2000; Getz, 2008). Since then, event tourism, an approach in which planned events are designed specifically to attract tourists to a destination, foster a positive destination image, and contribute to other destination-related promotions, has become an integral part of destination tourism development (Getz, 2008). This evolution has greatly expanded research on the topic. Studies examining both the demand and supply sides of event tourism have proliferated over the years; among the topics treated has been the impact of tourism events. As summarized by Getz (2008), studies on event tourism in the 1970s and 1980s tended to assess the economic impact of these events, while in the 1990s, researchers shifted their attention to understanding why tourists attended such Address correspondence to Sandy C. Chen, Assistant Professor, Hospitality Management, College of Business, Cascades Hall 227, OSU-Cascades Campus, 2600 NW College Way, Bend, Oregon sandy.chen@osucascades.edu 106

2 Cluster Analysis 107 events. In the last decade, more balance has been seen in event impact research with the inclusion of studies assessing the social, cultural, and natural impacts of tourism events. The most noticeable research theme to emerge in the last decade is how residents perceive the impact of these events on the community itself (Getz, 2008). In the literature, three major explanations can be identified for the emergence of this theme. First, as stated by Fredline and Faulkner (2000), sound management of the impact of tourism events is an ethical concern. Organizers should minimize the negative impact (e.g., disrupting daily routines) while maximizing the positive (e.g., creating more recreational facilities), thereby exercising corporate social responsibility and improving the quality of life for local residents. A second explanation is marketing considerations. As argued by some scholars (e.g., Menning, 1995; Richardson & Long, 1991), tourism development in a community is not simply a matter of matching product supply with tourist demand; the financial and leisure needs and wants, acceptance, and support of local residents must also be considered. Tourism events based on local culture and resources unavoidably involve local residents, who are part of the attraction the authentic side of the event offered the tourist, while at the same time, they can be event attendees. With either role, their attitudes and behavior can greatly influence the satisfaction and overall experience of tourists attending the events, and therefore, they are vital to the success of tourism in the community. Finally, the third explanation for the recent monitoring of how residents perceive the impact of tourism events entails political concerns. Involving local residents in tourism development reflects a social structure. In developed countries, it is normal and natural for decision makers to involve local residents in developing local tourism, since such development heavily concerns private money and taxes. In developing countries, although operational, cultural, and structural issues limit how much local residents can participate in community tourism development, the influence of different interest groups on the community has been recognized and thus must be examined (Tosun, 2000, 2006). Adding to the above explanations, this study argues that another reason it is important to examine how residents perceive the impact of tourism events resides in the unique role they play in a special event. As a means of developing community tourism, event tourism involves local residents in different ways than general tourism does. For instance, a local park or historical site might be an attraction to tourists, but for local residents it is only a part of their daily life. But an event such as an automobile race, which does not occur on a daily basis but only once a year or every several years, is a special occasion and can attract both tourists and local residents alike. In this case, the local resident becomes an event attendee, just like a tourist, to experience directly the special happening staged by the event organizer. This suggests that local residents perceive those types of tourism

3 108 S. C. Chen that do not make them feel like tourists differently from how they perceive event tourism, which allows them to experience what tourists experience. Thus, it is vital to understand their perceptions of such events in the course of developing community tourism. This study therefore has two purposes. First, it explores how local residents perceive event tourism in Macao. Specifically, it examines their perceptions of eight major tourism events organized and executed annually by the Macao government offices in its efforts to diversify Macao s travel products and promote the region as an ideal event destination. Second, the study compares the current findings to those in previous studies in order to draw parallels and identify patterns in resident reactions to event tourism and tourism in general. This study has both practical and theoretical implications. Practically, it provides Macao decision makers and event marketers an in-depth understanding of the local public s reactions to tourism events designed and staged by governmental agencies in an endeavor to change the destination image. Theoretically, it also extends the literature of event tourism by exploring one of its unique characteristics whereby local residents are event attendees like tourists. Unlike other studies focused on a single or single type of event, this study additionally examines a set of separate events, thereby providing community decision makers a more complete view of event tourism in a community. It also points out that resident perceptions of the impact of event tourism vary along with the social and cultural context. LITERATURE Resident Perceptions of the Impact of Community Tourism Studies on resident reactions to community tourism first emerged in the late 1980s, when event tourism began to be recognized in both the industry and academia; this illustrates the recognition of the significant role played by local residents in the success of community tourism. Two patterns of research can be identified from these previous studies. The earliest studies, published in the late 1980s and early 1990s, were devoted primarily to the impact of tourism on local communities (Andereck & Vogt, 2000). Researchers have almost reached a consensus on what makes up a resident s salient beliefs about these impacts. They have also labeled the positive impacts of tourism as benefits and opportunities, including greater employment and business opportunities, increased tax revenues for local governments, infrastructure and recreational opportunities for local people, enriched social life, restoration of historical sites, preservation of local cultures, and conservation of natural resources (e.g., Andriotis & Vaughan, 2003; Ap, 1992). Meanwhile, they have designated the negative aspects of tourism as costs and concerns, including traffic congestion, increased crime rate,

4 Cluster Analysis 109 increased cost of land and housing, increased price of goods and services, changes in traditional culture, deterioration of the natural environment, and decreased quality of life (e.g., Andriotis & Vaughan, 2003; Ap, 1992). But as Ap (1992) observed, most such studies were exploratory in nature and primarily descriptive. Ap called instead for a theoretical orientation as well as operational definitions of the central concepts in understanding resident reactions to tourism. More recent studies, published in the past decade, have demonstrated a broader approach by examining not only the impact of tourism as perceived by residents, but also their potential or actual support for tourism development. Although most studies on resident reactions have followed a quantitative approach (Andriotis, 2009), some have tried to apply a theoretical paradigm to determine whether a relationship exists between the impact perceived by residents and their attitude toward community tourism. As summarized by Andriotis and Vaughan (2003), theories adopted by previous studies include CAB (cognitive, affective, and behavioral components of attitudes), play theory, compensation theory, conflict theory, dependency theory, social exchange theory (SET), and social representation theory. SET has gained the most popularity among authors. Tourism researchers have also identified many variables that influence a person s salient beliefs about the costs and benefits created by community tourism. As categorized by Andriotis and Vaughan (2003), these factors include (a) extrinsic variables, including the state of tourism development in the host community, type of tourists, and seasonality; (b) intrinsic variables, including the distance that residents live from tourism zones, resident involvement in tourism, resident economic or employment dependency on tourism, and attachment to the community; and (c) sociodemographic characteristics, including gender, age, education, and income. Resident Perceptions of the Impact of Event Tourism Since studies on how residents perceive the impact of event tourism did not begin appearing until the start of the new millennium, or about 20 years after the studies on their perceptions of community tourism development (Getz, 2008), it is not surprising that the body of literature in this specific sector remains relatively small (Zhou & Ap, 2009). But as Fredline and Faulkner (2000) and Deery and Jago (2010) have discussed, most of these studies have adopted research methods from studies on tourism in general. This is only natural, since event tourism is a part of general community tourism (Getz, 2008), and the literature on general tourism has provided sufficient background for the studies pertinent to event tourism. Examination of existing publications looking at resident reactions to tourism events further shows that most have focused on a single event rather than a set of tourism events, or even the entire event tourism sector in the

5 110 S. C. Chen TABLE 1 Major Studies on Residents Perceptions of Tourism Events Author Year Research setting Soutar and McLeod 1993 America s Cup in Fremantle, Australia Mihalik and Simonetta 1999 Atlanta 1996 Summer Olympics Fredline and Faulkner 2000 Gold Coast Indy Car Race Neirotti, Bosetti, and Teed 2001 Atlanta 1996 Summer Olympics Deccio and Baloglu 2002 Salt Lake City 2002 Winter Olympics Waitt 2003 Sydney 2000 Summer Olympics Kim and Petrick FIFA World Cup in South Korea and Japan Gursoy and Kendall 2006 Salt Lake City 2002 Winter Olympics Bull and Lovell 2007 Tour de France 2007 Jackson 2008 Six events in Daytona Beach, Florida Bob and Swart FIFA World Cup in South Africa Zhou and Ap 2009 Beijing 2008 Summer Olympics Zhou 2010 Grand Prix Car Race in Macao community. Table 1 provides a list of major studies on resident perceptions and events as examined by Getz (2008) and Deery and Jago (2010), from which many of the attributes used in this study were adopted. Of the 13 studies listed here, only one, by Jackson (2008), examined a set of tourism events, which took place in a community in Florida. This table also shows that megaevents dominate this specific sector of literature. Although these studies have made significant contributions to the literature of event tourism, the current study argues that studying a set of major tourism events designed to occur annually in a community can provide decision makers with a bird s eye view of the event tourism sector; it also maintains that such research is critical in the strategic planning of tourism development as a whole. This is one of the main purposes of this study. SET and the Theory of Social Representations As mentioned previously, many studies on the impact of event tourism have followed in the footprints of studies in general community tourism; some have used SET in their studies, while others have used the theory of social representations. But although the use of SET in tourism has gained much support in the literature, it has also been criticized for its shortcomings (Fredline & Faulkner, 2000; Pearce, Moscardo, & Ross, 1996). The theory of social representations, as an alternative framework, is said to be more suitable for examining opinions shared by groups of people (Fredline & Faulkner, 2000). This study uses an integrated approach to include both theories in its analysis. SET examines the exchange of rewards and costs to quantify the value of outcomes from different situations for an individual or a group (Thibaut & Kelley, 1952). The theory suggests that people strive to minimize costs and

6 Cluster Analysis 111 maximize rewards. Their likelihood of developing a relationship with someone is based on perceived possible outcomes; when they perceive outcomes to be positive (i.e., rewards exceed costs), they will disclose more information and develop a relationship with that person. Applying this theory to tourism, Ap (1992) contended that SET was an appropriate theoretical framework to explain why and under what situations local residents would harbor positive attitudes toward and support for tourism. Ap s view gained much acceptance in later studies. For instance, McGehee and Andereck (2004) adopted and tested a model developed by Perdue, Long, and Allen (1990) using SET as the foundation, while Deccio and Baloglu (2002) replicated Jurowski s (1994) model, which was built on SET. As stated by Fredline and Faulkner (2000), social representations are mechanisms used and shared by a group of people to interpret the world around them; the key to identifying these representations is to identify a consensus of resident perceptions. In applying this theory to tourism, authors such as Davis, Allen, and Cosenza (1988) and Madrigal (1995) identified groups with common perceptions by analyzing cluster patterns in community reactions to tourism. This line of inquiry was followed by authors such as Fredline and Faulkner (2000), Fredline et al. (2003), Small (2007), Zhou and Ap (2009), and Zhou (2010). As specified in the introduction, the second purpose of this study is to compare the current findings to those of previous studies in order to draw parallels and identify patterns in resident reactions to both event tourism and general tourism. To conduct the comparison, this study clusters residents into groups based on their perceptions. Macao and Event Tourism Macao lies on the western side of the Pearl River Delta, bordering Zhuhai, a region in China s Guangdong province in the north, and facing the South China Sea on the east and south. It has a geographic area of 29.2 square kilometers and a population of half a million. Macau was both the first and the last European colony in China, being handed over to China in 1999 by the Portuguese government. Today it is one of two special administrative regions (SARs) of the People s Republic of China (the other being Hong Kong), and is also known as Macao SAR. It operates under the policy of one country, two systems set up by mainland China s central government, which is responsible for the territory s defense and foreign affairs. Macau maintains its own legal system, police force, monetary system, customs policy, immigration policy, and delegates to international organizations and events. Since liberalizing the gaming industry in 2001, Macao has obtained a vast investment inflow for building megacasinos. Well-known investors include

7 112 S. C. Chen Las Vegas-based gaming corporations, such as MGM, Wynn Resorts Ltd., and the Las Vegas Sands Corporation. The gaming industry is estimated to contribute more than 50% of Macau s gross domestic product and 70% of its government revenue. But the city s heavy reliance on the gaming industry is of concern to the Macao government, especially at a time when nearby Singapore has opened two major integrated resorts that are playing down casino space in favor of a Universal Studios theme park, among other attractions. At the same time, other destinations in the same region, such as Taiwan and Hainan, an island of mainland China, are considering liberalizing their casino policies. Since 2002, Macao s local government has been seeking ways to diversify the city s offerings in an attempt to change it from a gaming destination into a sustainable tourist destination able to maintain its competitive edge in the region. Among the marketing initiatives proposed by the government over the years, one has been to make the city into a city of events through a set of special events specifically designed to attract tourists. Table 2 summarizes the major tourism events designed and organized by Macao governmental organizations. When first introduced, however, this marketing initiative immediately became the subject of considerable discussion among different stakeholders. The major concern associated with the development of tourism events has been the rebranding and repositioning of Macao from casino tourism (CAT) to meeting, incentives, convention, and events (MICE; McCartney, 2008). Macao, as a former Portuguese colony, has a long history of gaming. In 2006, it became the world s leading gaming destination in terms of gaming revenue, and by mid-2008, it had surpassed the revenues of Las Vegas and Atlantic City combined (McCartney, 2008). Additionally, Macao does not have sufficient infrastructure and event management expertise, both of which are needed for it to become a world-class event destination (Lai, 2009; McCartney, 2008). For instance, at the moment, Macao depends largely on expertise from Hong Kong, Australia, and other countries in event management. Thus, changing Macao s image overnight from gaming to events tourism is not a possibility. Nevertheless, the provision of events and festivals by the local government has become an expected part of community tourism. Every year, special events involving both local residents and tourists are planned and executed in the city. As Wood (2006) noted, the main purpose behind local authority events (i.e., events designed and organized by local governments) is not economic benefit. Such appears to be the case in Macao, since no statistics can be found to indicate the economic gains and costs derived from the aforementioned events. Intangible impacts, such as social and cultural consequences, however, can and should be measured to see how other stakeholders, especially local residents, are responding to these events, given the importance

8 Cluster Analysis 113 TABLE 2 Major Annual Events and Festivals in Macao, SAR, P.R. China Event Description 1 Macau Grand Prix A set of car and motorcycle races in a city circuit. A history of five decades. Takes place on the third weekend of November every year. 2 Macao Food Festival Features food from around the world and is held for 17 consecutive days. Highlights include delicacy zones, namely Chinese, Asian, European, local, and dessert, with an average of 100 booths from Malaysia, Taiwan, and Macao. Also has live music performances, game booths, and rides. Takes places every year from mid to end of November. 3 Dragon Boat Festival Local and foreign teams participate in boat race every year in mid-june. 4 Macau International Fireworks Display Contest 5 Macao International Music Festival Takes place weekends in September and October. In past years, over 100 international teams from China, the Philippines, Thailand, Taiwan China, Japan, Korea, Australia, the United Kingdom, Switzerland, France, Germany, Portugal, and Spain have taken part. Brings internationally renowned artists from all over the world to Macau. Over the course of its decades-long history, this event has evolved into the major musical event in the territory. Takes place in October and the first week of November. 6 Macao Arts Festival Takes place throughout May and features over 70 performances by 25 acts from 20 countries, including Portugal, Brazil, the United Kingdom, Germany, France, Spain, Finland, Peru, Cuba, the United States, Canada, and Australia. 7 Macao International Marathon 8 Macao Open Golf Tournament Takes place the first week of December. Runners from overseas join hundreds of Macau and Hong Kong athletes. With high profile players and support of the Macau Golf and Country Club, the Macau Open gives the region s golfers a chance to test their rapidly developing skills against the best in the world. Source: Macao Government Tourism Office ( of their support for community tourism development as stated in the introduction. A few studies have examined the perceptions and attitudes of stakeholders toward tourism events specifically in Macao. McCartney (2005) investigated the satisfaction level of tourists who attended the Grand Prix 2005, while Zhou (2010) studied local residents perceptions of the impact of the same event. But both authors were examining a single event. The current study takes a broader approach by examining Macao residents overall perceptions of eight major tourism events carried out annually by different governmental agencies in the city, thus allowing decision makers to gain a global picture of the event industry in the city as perceived by local residents.

9 114 S. C. Chen METHOD Survey Instrument The survey instrument consisted of four parts. The first contained screening questions on participants residence status and attachment to the city; only Macao residents who had lived in Macao for at least 6 months were selected to take the survey. The second part asked the participants to rate their familiarity with eight major annual events in Macao (see Table 4) and their perceptions of the level of influence of each event. The third part included 28 statements on residents perceptions of the 8 events as derived from the previous literature review on resident reactions to tourism and events (e.g., Andereck & Vogt, 2000; Ap, 1992; Deccio & Beloglu, 2002; Fredline & Faulkner, 2000; Soutar & McLeod, 1993). The participants were asked to rate the extent to which they agreed or disagreed with each statement on a 7-point Likert scale ranging from 7 (strongly agree) to 1 (strongly disagree). This part also asked them to rate four general perception questions, namely my attitude toward these events is positive, these events are well organized, these events have created more positive than negative impacts on Macao, and overall, these events meet my expectations toward tourism events. The fourth part collected participants basic demographic information, including age, gender, education, marital status, monthly income, and occupation. Data Collection The data were collected from July 20 to August 6, 2009, by telephone interview. Six undergraduate students attending the Institute for Tourism Studies in Macao were hired and trained to conduct the phone interviews during the evenings within this timeframe; evenings were chosen since in Macao most people are at home between 6:00 p.m. and 9:00 p.m. Random sampling was used to select the phone numbers for the interviews. All landline phone numbers in Macao begin with two digits, 28, and each number has seven digits total. QuickCalcs provided by GraphPad Software ( was used to create random numbers between and Although the target sample size for this study was 800, 1,000 numbers were randomly generated. In the first round of the survey, 596 valid interviews were conducted. Reasons for the low response rate included invalid or disconnected numbers, the unwillingness of some residents to participate in the survey or to finish all questions, residents who had lived in Macao for less than 6 months, and unanswered calls. A second list of 1,000 phone numbers, excluding those in the first list, was then generated, again using QuickCalcs, from which the student interviewers obtained another 204 valid surveys. The two-step process thus resulted in a

10 Cluster Analysis 115 response rate of 40% (i.e., 800/2,000). Each of the six student interviewers was compensated accordingly by the Institute for Tourism Studies. DATA ANALYSIS Descriptive Statistics Table 3 summarizes the descriptive statistics of the study participants. All had lived in Macao for at least 6 months, with most more than 10 years and 71% preferring to live in Macao over other places. Although not all people are interested in everyday happenings in Macao, 57.1% of the respondents were. Among total respondents, 56.6% were female and 43.4% were male, TABLE 3 General Characteristics of Survey Respondents Characteristic Percent Length of time living in Macao 6 months 10 years 8.6 >10 years 91.4 N 800 Interested in what s happening in Macao a (n = 800) 57.2 Prefer living in Macao to other places a (n = 800) 71.0 Gender (n = 798) Male 43.4 female 56.6 Age (n = 799) < Education (n = 800) High school or less 67.4 Some college 10.2 College degree 22.4 Marital status (n = 799) Single 46.7 Married 53.3 Pre-tax monthly income (MOP$) b (n = 795) <5, ,001 10, >10, Occupation (n = 790) Management 30 Non-management 70 General questions c (M, n = 800) They are all organized 4.82 They have created more positive than negative impacts 4.93 They meet my expectations toward a tourism event 4.76 My attitude toward them is supportive 4.72 I prefer to live in Macao 5.17 a All those giving a rating of 5, 6, or 7 on a 7-point Likert scale (7 = strongly agree, 1 = strongly disagree). b US$1 = MOP$8. c On a 7-point Likert scale (7 = strongly agree, 1 = strongly disagree).

11 116 S. C. Chen TABLE 4 Awareness of, Participation in, and Influence Means of Major Events Awareness a Participation b Influence Event (%) (%) M c n Macau Grand Prix Fireworks Display Contest Macao Food Festival Dragon Boat Festival Music Festival A-Ma Temple Worship Macao Arts Festival International Marathon Macao Open Golf Tournament 30 > a The participant had heard about this event at least once from different media. b The participant had attended this event at least once. c The influence level of each event was evaluated on a 7-point Likert scale (7 = very influential, 1 = not at all influential). and 49.6% were under the age of 34. More than 67% had a high school education or less, which was consistent with overall education levels in Macao (macao.gov.mo). More than half (53.3%) were married, and more than 57% had a pretax monthly salary of over MOP$5,000 (US$1 = MOP$8, macaotourism.gov.mo). The overall perceptions of the survey respondents concerning the impact, organization, and quality of major events in Macao were moderate, ranging between 4 and 5 on the 7-point Likert scale. Table 4 shows that the events with the highest level of awareness were the Grand Prix, the Dragon Boat, the Fireworks Contest, and the Food Festival. These were also the most influential events with a mean score over 5 points. The event participation levels (i.e., at least once), however, were 40%, 70%, 80%, and 20%, respectively, for these top events. Factor Analysis To evaluate the validity and reliability of the 28 impact statements and to simplify the description of clusters identified through cluster analysis in the following text, principal factor analysis with varimax rotation was conducted on all statements. The statistical process resulted in seven factors explaining 62.5% of the variance (see Table 5). Factor 1, labeled community pride, mainly comprised the benefits accruing to the whole community, such as increased tourism image, sense of pride, and development of the local economy. Factor 2, labeled personal gains, included five statements describing the respondents personal experience with the major events. Factor 3, labeled economic benefits, involved statements such as increased employment rates, increased government and business profits, and increased living standards. Factor 4, labeled community life quality, consisted of

12 TABLE 5 Factor Analysis of Residents Perceptions of the Impacts of Major Events in Macao (n = 800). Statement (shortened) F1 F2 F3 F4 F5 F6 F7 M Communalities Factor 1: community pride Increased the city s tourism image Increased the city s image Made me proud to be a Macao resident Gained a sense of pride Made the city more international Contributed to the city s tourism Created more network opportunities Promoted the economy Factor 2: personal gains Brought in a big audience Had lots of enjoyment Brought excitement to my life Enriched my life Brought emotional experience to my life Factor 3: economic benefits Raised the employment rate Created profits for the government Improved shopping opportunities Created profits for the enterprise Created new facilities Improved overall living standards of residents (continued on next page) 117

13 TABLE 5 (continued ) Statement (shortened) F1 F2 F3 F4 F5 F6 F7 M Communalities Factor 4: community life quality Created many leisure opportunities Created family-based leisure opportunities Provided opportunities for residents to learn about their own community Factor 5: environmental negatives Destroyed the natural environment Created air pollution Factor 6: cultural negatives Damaged heritage sites Disrupted normal life Factor 7: social services Pressures Created traffic jams Put pressure on urban services Eigenvalue Variance explained (%) Total = Cronbach s alpha (α) Number of items Note: Extraction method: principal component analysis. Rotation method: varimax with Kaiser normalization, cutoff point = Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) = 0.866, df = 276, p <

14 Cluster Analysis 119 statements on leisure and educational opportunities that the events could bring to the community. Factor 5, labeled environmental negatives, comprised two statements describing the impact of the events on the natural environment. Factor 6, labeled cultural negatives, included two statements, namely damage to the heritage site and disruption of the normal routine of the community. Finally, Factor 7, labeled social services pressure, included two statements describing the impact of events on urban development. Cluster Analysis Cluster analysis was conducted on the 28 impact statements in an effort to identify groups of residents with similar response patterns. Prior to this, a missing value analysis was conducted using the expectation-maximization (EM) algorithm and its solution, but the missing at random (MAR) value was not significant, indicating that missing values were not a problem. A scatter plot was then used to identify outliers that could greatly influence the cluster analysis, but no extreme cases were identified. For the cluster analysis, a hierarchical technique was first applied using Ward s method with squared Euclidean distances. The results showed a two- to seven-cluster resolution. Then, following previous studies by Davis et al. (1988), Madrigal (1995), Fredline and Faulkner (2000), and Zhou (2010), two-, three-, and fivecluster resolutions were examined with the K-means technique. Ultimately, the three-cluster resolution seemed to provide the most interpretable results. Discriminant analysis was then applied to detect whether any significant differences existed among the three groups; the results were affirmative. Table 6 displays the factors with impact statements, with the mean scores of each statement in three clusters. Cluster A was labeled Embracers, as also used by Zhou (2010) and Zhou and Ap (2009). The characteristics of this group of residents were similar to those described by these authors as well as Davis et al. (1988), Madrigal (1995), and Fredline and Faulkner (2000), with the latter using the different term of Lovers. This cluster comprised 215 residents, who agreed most strongly that the events in Macao had promoted community pride, economic benefits, and increased community quality of life and disagreed that they interrupted the normal routine of the community; they also had reserved opinions as to whether the events had damaged the city s heritage sites. They did, however, recognize the negative impact that the events had on the city s transportation and service departments. Cluster B was called Realists, a label used by Madrigal (1995) and Fredline and Faulkner (2000), and included 326 residents. Similar to what Fredline and Faulkner (2000) described, this group of people acknowledged that the events had both positive and negative impacts. With respect to positive impacts, these residents opinions were not as strong as those in Cluster A, but they did strongly agree that the events had had a negative cultural impact.

15 120 S. C. Chen TABLE 6 Means of Clusters Cluster A, Cluster B, Cluster C, Experiencers Realists Embracers Statement (n = 173) (n = 326) (n = 215) Factor 1: community pride They have increased the city s tourism image They have increased the city s image They have made me proud to be a Macao resident I ve gained a sense of pride through these events They have made the city more international They have contributed to the city s tourism They have created more network opportunities for residents They have promoted economic development Factor 2: personal gains They have brought in a big audience I ve had lots of enjoyment They have brought excitement to my life They have enriched my life They have brought emotional experience to my life Factor 3: economic benefits They have raised the employment rate They have created profits for the government They have improved shopping opportunities They have created profits for the enterprise They have led to the creation of new facilities They have improved overall living standards of the residents Factor 4: community life quality They have created many leisure opportunities They have created new family-based leisure opportunities They have provided opportunities for residents to learn about their own community Factor 5: environmental negatives They have destroyed the natural environment They have created air pollution Factor 6: cultural negatives They have damaged heritage sites They have disrupted normal life Factor 7: social services pressures They have created traffic jams They have put pressure on urban services Note: Statements were measured on a 7-point scale (1 = strongly disagree, 7 = strongly agree). This group was also the only cluster to strongly disagree that the events had destroyed the natural environment of Macao. Finally, Cluster C was labeled Experiencers, with 173 residents. Their responses to most statements, except those in Factor 2, were low; in other

16 Cluster Analysis 121 words, the highest mean scores within this group were with respect to the statements contained in Factor 2, that of personal gains. This seems to imply that this group of residents cared more about their own personal experience with the events than about the events overall impact on the community, even though they did recognize the negative impact on city transportation. Despite their various perceptions of the benefits created by the eight events, the three clusters all recognized that the events had put a great deal of pressure on urban services and had caused a certain level of damage to the heritage sites of the city. This view reflected reality; since Macao is a small place with a high population, the crowds brought in by special events must undoubtedly compete with local residents over resources. Profiling the Residents Further information regarding each cluster was unearthed using descriptive analysis and multivariate analysis of variance (MANOVA). The respondents demographic information was categorized into each cluster. MANOVA analysis was then performed between each cluster and the variables I have a positive attitude toward these events, they have created more positive than negative impacts, these events are well organized, they meet my expectations, and I would be happy to move out of Macao if possible in an effort to identify any group differences. Table 7 shows that Cluster A (Embracers) had more male than female respondents. Approximately 55% of all respondents were over 34 years of age. More than half the residents in this group were married. About 27% considered themselves as holding management-level positions, and 38.2% had a pretax monthly income of more than MOP$10,000, which is considered a good income in Macao. Approximately 34% had at least some college education. This group agreed that the events had had more positive than negative impacts on Macao, and they held a positive attitude toward these events, but they did acknowledge that not all events were well-organized or met their expectations. Most said that if they had to move from Macao and live somewhere else, they would be very unhappy. But compared with the other two groups, this group had the lowest percentage (i.e., 62%) of residents who had participated at least once in a top event. Cluster B (Realists) had similar demographic features as Cluster A, except that about 2% more had a pretax monthly income of less than MOP$5,000, which is considered low in Macao. Like Cluster A, approximately 34% had at least some college education. This group of residents slightly agreed that the events had had a more positive than negative impact on Macao, and their overall attitude toward the events was vague. They also said they would be unhappy if they had to move from Macao and live somewhere else.

17 122 S. C. Chen TABLE 7 Profiles of Clusters Cluster A Cluster B. Cluster C, Embracers Realists Experiencers Feature (n = 215) (n = 326) (n = 173) Gender (%) Male Female Age < Education High school or less Some college College degree Marital status Single Married Income (MOP$) <5, ,001 10, >10, Occupation (%) Professional Non-professional Overall perceptions of major events in Macao a They are well organized (A) 5.04 (B) They have created positive impacts (B) My attitude toward these events is positive They meet my expectations (AB) I would be happy if moving out of Macao (A) 3.12 The most influential events in Macao are b Grand Prix Fireworks Contest Food Festival Participated at least once in the top three events (%) Grand Prix Fireworks Food Festival Total (times) 404 (62%) 665 (68%) 386 (74%) Note: Capital letters indicate that the number differs significantly at p.05 from the number in the corresponding column; no letter means no differences between the groups. a Variables were measured on a scale from 1 (strongly disagree) to 7 (strongly agree). b Variables were measured on a scale from 1 (not influential at all) to 7 (very influential) Approximately 6% more respondents in this group than in Cluster A had participated in at least one of the top events in Macao. Finally, Cluster C (Experiencers) demonstrated some unique characteristics. More than 61% were female, 54% were single, and 50% were under age 35. Approximately 40% had at least some college education, with 30% holding at least a bachelor s degree; more than 60% made more than MP$5,000, with 43% making more than MOP$10,000. Their opinions on whether the

18 Cluster Analysis 123 events had had a more positive than negative impact on the community were vague, as was their attitude toward event tourism in Macao in general. But they did agree that the events were well organized overall and met their expectations. This cluster of residents also stated that they would not be happy if they had to live somewhere else. The percentage of respondents in this cluster who had participated in at least one of the major events was as high as 74%. DISCUSSION As an extension of the literature on residents perceptions of tourism events, the findings in this study both resemble and differ from those in previous studies. Table 8 shows the parallels between the Macao clusters and those identified by other studies. First, clusters similar to those of previous studies were found. The Embracers cluster in this study shared similar characteristics to those in earlier studies, even though different labels (i.e., Embracers vs. Lovers) were sometimes used. Second, the Realists cluster in this study shared similarities with the Cautious Romantics cluster as identified by Davis et al. (1988) and Realists as identified by Madrigal (1995) and Fredline and Faulkner (2000). But the cluster of Experiencers in this study is new and not addressed in previous studies. This leads to a consideration of the differences between this study and previous ones. For the first time, this study has addressed a new dimension of the impact of event tourism, namely Personal Gains (see Table 5). The cluster analysis showed that this group of people tended to ignore both the positive and negative impacts of events on the entire community and focused instead on their own personal experience with them. The multiple regression analysis revealed significant positive correlated relationships between their personal experience (as Factor 2, personal gains, in Table 5) and overall perceptions toward tourism events (i.e., as in Table 9, I have a positive attitude toward these events, they have created more positive than negative impacts, these events are well organized, and they meet my expectations ). In this sense, they could be called indirect embracers of event tourism. Yet another difference between this study and previous ones is that it examines a set of major tourism events in a community, whereas the latter have focused on a single event. This approach has the advantage of providing a global view of the event industry in a community. At the same time, this study is similar to that of Zhou and Ap (2009), who examined residents perceptions of the 2008 Beijing Olympics, and Zhou (2010), who examined their perceptions of the Macao Grand Prix in terms of sociocultural contexts. As with these two studies, this study did not find Haters among local residents, mainly because these events were authoritative. In other words, in mainland China and Macao, tourism events

19 TABLE 8 Macao Clusters and Those Identified by Other Studies Fredline and Madrigal Faulkner Macao events Davis et al. (1988) (1995) (2000) Zhou and Ap (2009) Zhou (2010) (this study) Lovers (20%) Lovers (13%) Lovers (23%) Embracers Embracers (51.2%) Embracers (30%) Haters (16%) Haters (31%) Haters (15%) Optimistic (55%) Tolerators (48.8%) Realists (46%) Cautious Romantics Realists (56%) Realists (24%) Reserved Optimistic (33%) Experiencers (24%) (21%) In-Betweeners (18%) Ambivalent Supporters (29%) Love em for a Reason (26%) Concerned for a Reason (9%) Tolerators (12%) 124

20 Cluster Analysis 125 TABLE 9 Multiple Regression Analysis Results SD Standardized Variable M (n = 800) coefficients p Personal gains (DV) I have a positive attitude toward these events (IV) They have created more positive than negative impacts (IV) These events are well organized (IV) They meet my expectations (IV) Note: Variables were rated on a 7-point Likert scale (7 = strongly agree, 1 = strongly disagree). R 2 =.410, F = , p <.00. are normally planned and designed by the government, and the people are expected to support whatever the government decides to do. Thus, strong opposition to any event from local residents is rare. They could, however, express their concerns in a moderate manner. In this sense, the cluster Experiencers in this study could be considered Tolerators or Followers who were not willing to assess the overall impact of tourism events on the entire community. IMPLICATIONS, LIMITATIONS, AND CONCLUSION This study reports how local residents have perceived the major annual tourism events in Macao. Overall perception was moderate, with only about 70% slightly agreeing that these events had a more positive than negative impact on the city of Macao. The cluster analysis revealed three clusters of residents with distinct views toward these events, which could provide a basis for a more targeted approach by the local government in planning and promoting event tourism as a whole. For instance, it is important that the government take immediate action to relieve the pressure put on social services, since this issue was a concern to all three clusters. Cluster B, Realists, were concerned mainly about the damage of the events to cultural heritage sites. Thus, measures for not using these heritage sites or for protecting them from tourism events must be developed and put into place immediately. A closer examination of Cluster C, Experiencers, also shows that when promoting tourism events and soliciting support and participation from residents, decision makers could emphasize the excitement for residents in attending an event. Although the similarities of the major findings in this study to those in previous studies are apparent, this study extends the others by identifying a new factor (i.e., Factor 2, personal gains ) with regard to the impact of events on a community. This may indicate a difference between the

21 126 S. C. Chen impacts of community tourism and event tourism, although tourism events are usually designed and planned to stimulate tourism growth. This study also differs from that of Zhou (2010), who examined the same community. Whereas Zhou s study focused on a single event, this study examined a set of major events, thereby providing decision makers with a more complete view of event tourism in Macao. It should be pointed out that differences exist in resident perceptions when the social and cultural context varies. In a hierarchical society like China, residents tend not to disagree strongly with their government s decisions. Instead, they will try to embrace, tolerate, or adapt to them using different methods. Thus, it is not surprising that this study and those by Zhou (2010) and Zhou and Ap (2010) did not find a cluster of Haters as did others (e.g., Davis et al., 1988; Fredline & Faulkner, 2000; Madrigal, 1995), who examined Western countries. This study has limitations. In the tourism context, past research suggests that resident reactions are affected by factors such as their involvement in tourism and geographical proximity to activity concentrations (Fredline & Faulkner, 2000). Future studies should explore these issues. The study also provides a static picture of perceptions at a particular point in time, which can be another limiting factor. In conclusion, this study suggests that similar studies should be carried out every year to monitor residents perceptions of the development of event tourism in Macao. Further, a comparison of these findings with those obtained in the other two major tourism sectors in Macao, namely gaming tourism and heritage tourism, should give the local government a clearer understanding of how local residents perceive each of the three main sectors overall. This study is the first to include a personal factor (Factor 2, personal gains, in Table 5) in the construct of the impact of event tourism and one of the few to examine a set of tourism events simultaneously. It is hoped this study will stimulate more discussion on these issues. REFERENCES Andereck, K., & Vogt, C. A. (2000). The relationship between residents attitudes toward tourism and tourism development options. Journal of Travel Research, 39, DOI: / Andriotis, K. (2009). Community attitudes toward tourism development. Sci- Topics. Retrieved April 26, 2001, from Attitudes towards Tourism Development.html Andriotis, K., & Vaughan, R. (2003). Urban residents attitudes toward tourism development: The case of Crete. Journal of Travel Research, 42(November), Ap, J. (1992). Residents perceptions on tourism impacts. Annals of Tourism Research, 19(3), DOI: / (92) Bob, U., & Swart, K. (2009). Resident perceptions of the 2010 FIFA Soccer World Cup stadia development in Cape Town. Urban Forum, 20, DOI: /s