This study explores the evolving landscape of cultural tourism and performance art in the digital era, focusing on the integration of spatial narrative, technological innovation, and sustainable development. Through case studies such as Tianmen Fox Fairy, Digital Donor, and Legend of the Maritime Silk Road, the research examines how physical and virtual spaces are reimagined to enhance audience immersion and cultural expression. It proposes a collaborative model that links culture, space, and technology, emphasizing the importance of community participation and cultural authenticity in product development. The study also addresses critical ethical and operational challenges, including the risks of technological overreach, data privacy concerns, and the balance between globalization and localization. As the industry moves toward the metaverse, the research highlights the potential for immersive, interactive experiences while underscoring the need for ecological and cultural responsibility.