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The purpose of this paper is to focus on territorial dynamics generated by five music festivals in the Emporda region (Spain) and its tourism sector.

Using qualitative methodology, 10 qualified informants were interviewed. Their answers were coded and analysed.

Territorial features favour the organisation of festivals. Promoters wish to offer some added value using local products. Festivals broadcast local identity to the world. Festivals’ features as tourist products explain how they are perceived as innovative.

These existing products are being further developed to meet cultural tourism requirements. This strategy is justified by the search for innovation in a fiercely global competitive context.

Current paper focuses on a present product and analyses its transformation: how a territory uses an old strategy in a new way generating future opportunities for tourism sector and local economies.

This study aims to identify the challenges faced by urban destinations in Spain in the current transitional stage towards a new reality of tourism, caused by the outbreak of COVID-19 and the ongoing global changes in the tourism industry.

An extensive literature review and an analysis of current debates were conducted to identify the different factors that have influenced the recent tourism phenomenon and the development of destinations on a global, regional-national and local-urban scale.

Four main challenges are identified, including the new mobility patterns of the population; information and communication technologies and the digitalisation process in urban and tourism management; sustainability, as a factor of the competitiveness, stability and viability of urban destinations; and governance in urban destinations.

The study’s findings provide valuable insights for urban destination managers to make informed decisions and adapt to the new reality of tourism.