The human edge of the service economy

China's service sector is transitioning from expansion in scale to a new stage defined by quality and efficiency. In the service sector, competitiveness hinges on people. What matters most is human interaction, attentiveness, emotional connection and the quality of service encounters. These are elements through which cultural and tourism services create their greatest value. Greater attention should be given to service providers and cultural practitioners, as they shape how services are perceived, experienced and remembered.

Human warmth cannot be easily replicated by technology. It enables genuine interaction between people — locals and visitors, hosts and guests — and fosters a mutual value creation in which both sides benefit. In this sense, people are not only service providers and consumers, but also the source of humanistic value and cultural confidence. Ultimately, the quality of service depends on authentic human connection.

Beyond emotional engagement, a strong "sense of place" is another key driver of competitiveness. The emphasis of the conference on lifestyle-oriented services highlights the need for higher-quality and more diverse offerings. This requires moving beyond hardware upgrades and focusing instead on service spaces and scenarios. Spaces should not be treated as neutral containers, but as localized environments that carry culture and memory, allowing services to be rooted in place rather than overly standardized.

Hainan province offers a compelling example. As a major international tourism destination, its competitiveness will remain superficial if it relies only on sunshine, beaches and luxury hotels. By integrating local elements — such as Li brocade, intangible cultural heritage, and regional dialect narratives — into the service ecosystem, Hainan's tourism sector can create a distinctive hard-to-replicate identity.

More broadly, services themselves are becoming a brand in their own right. Just as "Made in China" stands for manufacturing strength, "Chinese services" can evolve into a globally recognized brand. People-centered service and the idea of shared experiences between hosts and guests can create a strong international appeal. This not only enhances China's attractiveness in global engagement, but also helps communicate a clearer and more tangible national image, reinforcing cultural confidence through everyday interactions.

The cultural and tourism sector is a natural integrator within the service industry. Though rooted in life services, it links multiple parts of the value chain and drives broader upgrading. A single tourism experience spans transport, accommodation, catering, retail and entertainment, underscoring the interconnectivity of different services.

When effectively developed, cultural and tourism services can catalyze coordinated improvements across related sectors in real-world settings. Even a small intangible cultural heritage workshop can combine cultural experiences, product sales, social interaction, and content dissemination. This kind of integration multiplies service value. As an entry point, culture and tourism can trigger targeted breakthroughs that ripple across the wider service chain, raising both quality and efficiency at the system level.

Sun Jiuxia is a professor at the School of Tourism Management, Sun Yat-sen University.

The views don't necessarily reflect those of China Daily.

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