Yahya A. ALzghoul

Type of the article: Research Article

Abstract
This study examines how innovation and sustainability influence the recovery of Jordan’s tourism and hotel sector, and whether their combined effect accelerates recovery beyond separate contributions. Annual data for 2010–2024 are compiled from the United Nations World Tourism Organization, the World Bank World Development Indicators, the Jordan Ministry of Tourism and Antiquities, the Global Innovation Index, and the Environmental Performance Index. A recovery index tracks sector performance relative to the 2019 baseline, while conditions are controlled using gross domestic product per capita, inflation, and exchange rate stability. Fixed-effects regression results indicate that innovation is positively associated with recovery (coefficient 0.41, probability value 0.001), and sustainability is positive and statistically significant (coefficient 0.34, probability value 0.032). The interaction between innovation and sustainability is positive and statistically significant (coefficient 0.48, probability value 0.009), showing complementarity: innovation yields larger recovery gains when sustainability performance is stronger. Exchange rate stability supports recovery (coefficient 0.19, probability value 0.021), and the model explains variation in outcomes (adjusted coefficient of determination 0.72). Robustness checks with alternative specifications confirm stable coefficient signs and significance. The findings support policy packages that align innovation investment with sustainability improvements to strengthen resilience and speed recovery in Jordan for long-term competitiveness.