The Role of Innovation and Creativity in Enhancing Urban Tourism Competitiveness: A Case Study of Chabahar City

Intensifying competition among urban tourism destinations, along with shifting patterns of demand, has highlighted the importance of new determinants of competitiveness enhancement. In this context, innovation and creativity, when integrated with infrastructural and environmental components, can play a crucial role in strengthening the competitive position of urban destinations. This study examine the impact of innovation and creativity on urban tourism competitiveness, with a particular focus on tourism infrastructure, natural and cultural resources, supportive environments, and governance frameworks. The research is applied in nature and adopts a descriptive–survey design. The statistical population consists of tourism experts and practitioners in the Chabahar Free Zone, from which 223 respondents were selected using purposive sampling. Data were collected through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4 software. The findings indicate that tourism infrastructure (β = 0.229) exerts the strongest direct effect on competitiveness, followed by supportive environments (β = 0.212) and innovation and creativity (β = 0.201). Moreover, the proposed model explains approximately 68% of the variance in tourism competitiveness. The results further demonstrate that innovation and creativity not only exert a direct effect but also function as a mediating mechanism, playing a significant role in transforming resource potential and infrastructural assets into dynamic competitive advantages.

Introduction

In recent decades, urban tourism has emerged as one of the most dynamic and influential sectors within the global economy, contributing significantly to economic growth, employment generation, urban regeneration, and sustainable development. Intensifying competition among tourism destinations has compelled cities to move beyond traditional resource-based advantages and adopt more innovation-driven and experience-oriented strategies. In this context, possessing natural and cultural attractions alone is no longer sufficient to ensure competitiveness. Instead, the ability to transform these resources into meaningful, memorable, and differentiated tourist experiences has become a decisive factor in destination success.

Innovation and creativity are increasingly recognized as critical drivers of tourism competitiveness. Innovation enhances efficiency and service quality through the application of new technologies, digital transformation, process improvement, and product development. Creativity, on the other hand, contributes to the design of unique experiences, storytelling, and emotional engagement, thereby strengthening the symbolic and experiential value of destinations. The interaction between these two elements enables destinations to create distinctive identities and sustain competitive advantage in rapidly changing tourism markets.

Chabahar, located in southeastern Iran, represents a strategic coastal city with significant geopolitical, cultural, and natural potential. Despite its unique geographical position as Iran’s only oceanic port and its rich ecological and cultural assets, the city has not yet achieved a proportional share of national and international tourism flows. This gap highlights a critical issue: the presence of resources alone does not guarantee competitiveness unless they are effectively activated through innovation and creativity. Therefore, examining the role of innovation and creativity in enhancing urban tourism competitiveness in Chabahar is both theoretically significant and practically relevant.



Methodology

This study adopts a quantitative, descriptive-correlational research design aimed at examining the structural relationships among key determinants of urban tourism competitiveness. The research is applied in nature and relies on empirical data collected from tourism professionals and stakeholders in Chabahar city.

The statistical population includes managers, experts, and practitioners working in tourism-related organizations such as the Chabahar Free Zone Organization, the Cultural Heritage, Handicrafts and Tourism Administration, travel agencies, and local tourism service providers. A purposive sampling technique was employed to ensure that respondents possessed sufficient professional experience and knowledge in the field. Ultimately, 223 valid questionnaires were collected and analyzed.

Data were accumulated using a structured questionnaire based on a five-point Likert scale ranging from strongly disagree to strongly agree. The questionnaire measured six latent constructs: tourism infrastructure, natural and cultural resources, supportive environment, executive framework, innovation and creativity, and tourism competitiveness. The measurement items were adapted from previous validated studies in tourism and innovation literature and refined to be align with the context of urban tourism in Iran.

To ensure the reliability and validity of the measurement instrument, Cronbach’s alpha, composite reliability (CR), average variance extracted (AVE), and discriminant validity criteria (Fornell-Larcker and HTMT ratios) were applied. The results confirmed satisfactory reliability and validity levels for all constructs.

For data analysis, Structural Equation Modeling (SEM) based on Partial Least Squares (PLS-SEM) was employed using SmartPLS 4 software. This approach was selected due to its suitability for exploratory models and complex relationships among latent variables. Bootstrapping with 5000 resamples was conducted to assess the statistical significance of path coefficients. Additionally, model fit indices, multicollinearity diagnostics, and predictive relevance tests (Q² and PLSpredict) were used to evaluate model robustness.



Results and Discussion

The empirical findings indicate that all proposed hypotheses are statistically supported, confirming that tourism infrastructure, natural and cultural resources, supportive environment, executive framework, and innovation and creativity all have significant positive effects on urban tourism competitiveness.

Among these factors, tourism infrastructure exhibits the strongest direct effect on competitiveness (β = 0.229), followed by supportive environment (β = 0.212), innovation and creativity (β = 0.201), natural and cultural resources (β = 0.187), and executive framework (β = 0.164). The model explains approximately 68 percent of the variance in tourism competitiveness, indicating strong explanatory power.

The findings highlight the central role of infrastructure in shaping destination performance. In the case of Chabahar, despite its strategic location and natural attractions, limitations in transportation systems, hospitality facilities, and digital infrastructure remain significant barriers to tourism development. Improving these components can significantly enhance accessibility, visitor satisfaction, and overall destination attractiveness.

Natural and cultural resources also play a fundamental role in shaping the identity of Chabahar as a tourism destination. The presence of unique coastal landscapes, geological formations, and cultural diversity provides a strong foundation for developing experience-based tourism. However, the transformation of these resources into competitive advantages requires creative interpretation, storytelling, and community engagement.

The supportive environment, including institutional frameworks, policies, and stakeholder collaboration, significantly influences the effectiveness of tourism development strategies. A well-coordinated governance system can facilitate investment, reduce uncertainty, and foster innovation ecosystems within the tourism sector.