The Role of Innovation and Creativity in Enhancing Urban Tourism Competitiveness: A case study of Chabahar city

A B S T R A C T
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.
Extended Abstract
Introduction
Urban tourism has increasingly become a central component of contemporary urban development strategies, playing a significant role in economic vitality, cultural representation, and spatial transformation. In recent years, the intensification of global competition among destinations has compelled cities to search for new mechanisms capable of enhancing their competitiveness in sustainable and future‑oriented ways. Traditional competitive advantages rooted solely in natural, cultural, or historical resources are no longer sufficient, as modern tourists demand innovative, immersive, and personalized experiences. Consequently, many scholars emphasize that innovation and creativity represent fundamental drivers in shaping the competitive structure of tourism destinations, particularly within urban contexts where economic and cultural dynamics evolve rapidly. Innovation contributes to the modernization of services, adoption of digital technologies, improvement of managerial processes, and development of new tourism products that align with changing market expectations. Creativity, on the other hand, enriches tourism through interpretive depth, experiential design, cultural storytelling, artistic expression, and the construction of symbolic identities. Together, these elements enable destinations to convert static resources into dynamic and experience‑based tourism offerings.
Chabahar, as Iran’s only oceanic port and a unique urban setting in the southeastern part of the country, represents a highly valuable yet underutilized tourism destination. The city benefits from privileged geographic positioning, diverse coastal and ecological landscapes, and a rich multicultural heritage rooted in long-standing trade and cultural interactions. Despite these inherent strengths, Chabahar has not achieved tourism growth proportional to its potential. This discrepancy underscores a critical challenge faced by many emerging destinations: the mere possession of natural and cultural assets does not automatically guarantee competitiveness. Instead, these resources must be activated through innovative planning, creative product development, institutional coordination, and infrastructural enhancement. Chabahar’s evolving economic role as part of the Free Trade–Industrial Zone adds further complexity, offering opportunities for investment, entrepreneurship, and urban transformation that can contribute to tourism development if properly integrated into strategic planning.
The global shift toward creative and smart tourism models highlights the need for destinations to reimagine their tourism systems. Digital platforms, smart infrastructure, participatory governance, and creative economies increasingly shape tourists’ expectations and influence their destination choices. For a developing coastal city like Chabahar, adopting innovation‑driven and creativity‑oriented approaches is essential for improving competitiveness and establishing a coherent position within national and regional tourism networks. Understanding how innovation and creativity interact with other determinants such as infrastructure, supportive environments, and administrative frameworks therefore becomes particularly important. The present study examines these dynamics through an empirical analysis that evaluates the direct effects of multiple determinants on urban tourism competitiveness in Chabahar, while also interpreting the transformative roles of innovation and creativity within this structure.
The significance of this research lies in its contribution to both theoretical and practical domains. At the theoretical level, it deepens the understanding of how innovation and creativity function as pivotal mechanisms in urban tourism competitiveness, especially in contexts where resource endowments exist but remain insufficiently operationalized. At the practical level, the study provides evidence‑based insights for policymakers, tourism managers, investors, and community stakeholders seeking to develop sustainable and experience‑based tourism strategies. By identifying the most influential drivers of competitiveness and clarifying how innovation and creativity can amplify their impacts, the research offers applicable guidance for strengthening Chabahar’s position as a distinctive tourism destination capable of sustained economic and cultural growth.
 
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. Similarly, the executive framework ensures that policies are effectively translated into operational actions, reducing the gap between planning and implementation.
Innovation and creativity play a mediating and transformative role in this model. They act as mechanisms that convert static resources into dynamic tourism experiences. Through digital technologies, personalized services, and creative tourism design, innovation enhances efficiency and visitor engagement. Creativity strengthens emotional connections between tourists and destinations through cultural narratives, participatory activities, and immersive experiences. In this sense, innovation and creativity function as catalytic forces that integrate and amplify the effects of other determinants.
 
Conclusion
This study demonstrates that urban tourism competitiveness is the result of a complex interplay among structural, institutional, cultural, and innovation-related factors. Innovation and creativity, In the context of Chabahar, serve as key mediating forces that transform underlying resources and infrastructure into sustainable competitive advantages.
The findings suggest that relying solely on physical infrastructure or natural attractions is insufficient for achieving long-term tourism development. Instead, a balanced and integrated approach that simultaneously strengthens infrastructure, enhances institutional support, leverages cultural and natural assets, and promotes innovation is essential.
From a practical perspective, policymakers and tourism planners should prioritize investment in smart tourism infrastructure, encourage digital transformation, support creative tourism initiatives, and foster collaboration between public and private sectors. Furthermore, empowering local communities and integrating cultural authenticity into tourism experiences can significantly enhance destination differentiation and visitor loyalty.
Overall, the study underscores the importance of transitioning from traditional tourism development models toward innovation-driven and creativity-oriented approaches. Such a shift is essential for improving the global competitiveness of emerging tourism destinations like Chabahar and ensuring sustainable and inclusive tourism growth.
 
Funding
There is no funding support.
 
Authors’ Contribution
The first author was responsible for the overall design of the study, the development of the theoretical framework, the development of the conceptual model, and the writing of the introduction and literature review sections. The first author also played the main role in analyzing and interpreting the findings and in drafting the discussion section. The second author contributed to the research methodology, the development of the data collection instrument, the implementation of the data collection process, and the statistical analysis using SmartPLS 4. The second author also played an active role in writing the results section and in the technical and scientific editing of the article. Both authors participated in the final review of the article and approved the final version.
 
Conflict of Interest
Authors declared no conflict of interest.
 
Acknowledgments
We are grateful to all the scientific consultants of this paper.