Bidirectional impacts of digitalization on cultural tourism performance in China: The moderating role of fiscal incentives

China’s digital transformation is reshaping its cultural tourism sector, creating both opportunities and regional disparities. This study examines the bidirectional relationship between digitalization and cultural tourism performance across 15 cities from 2009 to 2023, while evaluating the moderating role of fiscal incentives like subsidies and tax breaks. Using panel data, Granger causality tests, impulse response functions, and VAR models, the study finds a two-way dynamic: digital growth boosts tourism, and thriving tourism promotes digital development. Fiscal incentives strengthen this relationship, though effects vary by region. Leading cities like Beijing and Shanghai outperform less-developed ones such as Shijiazhuang and Guiyang due to differences in infrastructure and governance. The research contributes to Innovation Diffusion, Industry Convergence, and Value Co-Creation theories, and offers tailored recommendations for improving digital infrastructure and policy support. Subject classification codes: O33, L83, Z32, R11, H25, M31