Crossword Genius

Woman with capital touring area round Chilean port (10)

Ross

I believe the answer is:

valparaiso

I'm a little stuck... Click here to teach me more about this clue!

'chilean port' is the definition.
The definition suggests a singular noun which matches the answer.

'woman with capital touring area round' is the wordplay.
I cannot really see how this works, but
'woman' could be 'ara' and 'ara' is found within the answer.
'area' could be 'a' (maths abbreviation) and 'a' is found in the answer.
'round' could be 'o' (o is a circular letter) and 'o' is found in the answer.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?

I've seen this clue in The Times.
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