Evaluation of Innovative Activities and Efficiency Results in The Activities of Tourism Enterprises

Despite the significant innovative potential of entrepreneurial tourism activities, its impact on the efficiency of tourism enterprises has not been studied enough this study fills this gap by investigating the possible determination of activities and other factors of tourism enterprises that can be studied on the example of tourism potential of Fergana Valley of Uzbekistan. However, the slow traffic of foreign tourists, despite various specialties of culture and more than 370 historical sites, suggests an innovative-driven growth. The study highlights an important gap in our understanding about the nature of innovation in tourism, which is identified as being all-important for the continued competitiveness of destinations, but not examined systematically across competing countries, and almost not at all in developing or emerging economies. In addressing this, the study investigates economic, social, environmental, and cultural outcomes of innovation in tourism enterprises, employing structural equation modeling, efficiency frontiers, and ethnographic observation. Well, this is what this empirical research suggests through digital platforms, virtual tours and the so-called “tourist ring” approach: higher economic efficiency and greater customer satisfaction and development of the region. Results indicate that a 20%-average return on investment in innovation creates significantly more profit while the company generates historic levels of social and environmental benefits. The findings further confirm that, in isolation, financial-based metrics are inadequate by leaving out part of the innovation story. In hindsight, it was better to have an integrated assessment framework based on economic, social and cultural efficiencies of innovation. Implications for Policy, Industry This study has far-reaching implications for both policymakers and industry stakeholders: carefully-integrated digital and organizational innovations can bolster the competitiveness of Uzbekistan’s tourism sector. Following OECD and World Bank principles, the paper then calls for transparent exchange of global best practices so that sustainable and innovative tourism development is based on regional enterprises.