Fan Li

Brandenburg University of Technology Cottbus, Germany Faculty of Architecture, Civil Engineering and Urban Planning
World Heritage Studies
Master Thesis
Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions
Submitted by: Fan Li Matriculation No: 2214820 27th October 2004 Cottbus, Germany Supervisors Professor Hans Detlef Kammeier Professor Volker Martin
Brandenburg University of Technology Cottbus, Germany Faculty of Architecture, Civil Engineering and Urban Planning
Master of Arts (M.A.) in World Heritage Studies
This is to certify that the Master Thesis prepared by Fan Li
Entitled: Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions and submitted in partial fulfilment of the requirements for the degree of Master of Arts (M.A.).
Complies with the regulations of this University and meets the accepted standards with respect to quality.
Approved by: Professor Hans Detlef Kammeier Professor Volker Martin
_____________________________
(Signature and Date)
_____________________________
(Signature and Date)
Professor Hans Detlef Kammeier
Professor Volker Martin
Abstract
This thesis deals with heritage management with emphasis on urban conservation and tourism development in the old town of Lijiang in China. The case study about Lijiang shows the history of urban conservation and tourism development, identifies the achievement and problems, assesses the way how the local government deals with problems, and gives recommendations.
The main content of the thesis includes:
Past evaluation: The thesis identifies the issues including how tourism develops and conservation works in Lijiang; the impact of tourism development; the intervention in heritage management by the local authorities.
The present situation: The thesis explains how tourism contributes to conservation and works for tourism, the roles of different stakeholders in heritage management.
Future options: The possible scenarios for the old town are envisaged and evaluated.
Recommendations: Based on the previous research, the thesis demonstrates how to improve the present situation and how to integrate heritage management into social, economic and cultural development by the different stakeholders at different management levels
Acknowledgement
There are many people who played a role in my being able to write this thesis. Special thanks go to Professor Ruan Yisan, the directer of the National Research Center of Historic Cities in China, for initiating my interest in historic towns in China. Thanks to my employer, Dr. Shao Yong, in Shanghai Urban Planning and Research Institute, for giving me the chance to work in the field of urban conservation in historic towns in China and sharing her ideas and discussions with me.
Thanks to the people in Lijiang who contributed to this thesis Officers from the Heritage Conservation and Management Committee in Lijiang, tourists, local residents and shop owners whom I interviewed. Special thanks to officer Yao Jindian from the Heritage Conservation and Management Committee in Lijiang, for providing me with a lot of field information. I would particularly like to thank Professor Kammeier and Professor Martin, for their relentless efforts in helping me to write this thesis from the beginning to the end. Professor Kammeier helped me to structure my thesis and encouraged me to go ahead. Professor Martin gave me many useful suggestions.
Glossary
ATCF: the Ancient Town Conservation Fee (Lijiang) RMB: Chinese currency (1 RMB 0.1 EURO) GDP: Gross Domestic Product GHF: Global Heritage Fund (USA) HCMC: Heritage Conservation and Management Committee (Lijiang) LCAP: Conservation Action Plan for the old town of Lijiang (by UNESCO workshop2002) MCP: The Master Conservation Plan for the old town of Lijiang (2003)
Table of Contents
Chapter 1: Introduction....1 1.1 Rationale.1 1.2 Objectives...1 1.3 Methodology...2 1.4 Scope..2 1.5 Justification about the year 1994....3 Chapter 2: Concept framework..5 2.1 Identification of urban heritage in China ...5 2.2 Present situation of urban heritage in China.9 2.3 Tourism development in China.....13 2.4 The way forward: the future of urban heritage in China...16 Chapter 3: Urban conservation in Lijiang.....19 3.1 Introduction of Lijiang.....19 3.2 Urban conservation in Lijiang....21 3.3 Finance for urban conservation in Lijiang24 3.4 Attitude of different groups about conservation: residents, tourists, shop owners...30 3.5 Overview and recommendations about heritage conservation in Lijiang...31 Chapter 4: Tourism in Lijiang...34 4.1 History of tourism development in Lijiang...34 4.2 The impact of tourism in Lijiang....36 4.3 Attitude of different groups about tourism: residents, tourists, shop owners....43 4.4 Commercialisation in Lijiang..45 4.5 Government intervention on tourism development47 4.6 Critiques and conclusions..48 Chapter 5: Current situation of tourism and conservation in Lijiang...54 5.1 Review of the past..54 5.2 The relationship between tourism and conservation in Lijiang...54 5.3 The UNESO workshop: Lijiang Model concerning conservation and tourism development (2001).....56 5.4 The Master Conservation Plan for the old town of Lijiang (2003).......60 5.5 Summary of findings about heritage management in Lijiang...63 5.6 Problem identification and conclusions69 Chapter 6 Scenarios dealing with the future of the old town..86 6.1 Pre-conditions for the scenario.....86 6.2 Description of the scenarios..87 6.3 Evaluation of scenarios..91
6.4 The feasibility of the scenarios.....93 6.5 Retrospect....95 Chapter 7 Conclusion and recommendations.....97 7.1 The recommendations for the urban heritage conservation system in Lijiang..97 7.2 A recommended system and model for urban heritage conservation in China....98 7.3 Concluding remarks..101
Annexes Annex 1: Figures and tables..103 Annex 2: Boxes108 Annex 3: Interview description..118 Annex 4: Interview findings....121 Annex 5: The description of questionnaire survey by Tongji University in 2002..129 Annex 6: Tourists questionnaire survey by Tongji University in 2002130 Annex 7: Residents questionnaire survey by Tongji University in 2002....133 Annex 8: Open questions survey by Tongji University in 2002...137 Annex 9: Lijiang Model formulated in the Fifth Annual UNESCO Workshop of Culture Heritage Management and Tourism in October 2001, Lijiang..140
References..144
List of Figures Figure 1.1: Structure of the thesis.....4 Figure 3.1: The proportion of different fund sources....29 Figure 4.1: The increasing tourist numbers (1990-2003)....35 Figure 4.2: The monthly distribution of tourist numbers in year 2002...42 Figure 4.3: Components of the heritage industry.45 Figure 4.4: The former shop in the Ancient Tea Caravan Route ......49 Figure 4.5: The life cycle of tourism development51 Figure 5.1: The interaction between tourists, residents, shop owners, government and heritage...............67 Figure 6.1: the structure of scenarios for the old town of Lijiang86 Figure 7.1: The recommended system and model for heritage management in China (Lijiang as a case study) ...100 Figure 7.2: The beautiful views of the old town..102
List of Tables Table 2.1: The Changing Model of Tourism Policies in China14 Table 2.2: The Tourism Policy in China in 1984...14 Table 2.3: The impact of tourism on the urban environment..16 Table 3.1: The development of the organisation dealing with conservation after 1997 (the year of World Heritage inscription)..23 Table 3.2: Policies dealing with heritage conservation in Lijiang...24 Table 3.3: Fees from the ATCF in Lijiang..27 Table 3.4: The comparison between different funds for urban conservation in Lijiang...29 Table 3.5: The public fund and sources for urban conservation in Lijiang...29 Table 4.1: Important policies and projects dealing with tourism in Lijiang ..34 Table 4.2: The price difference in the old town and the new town.37 Table 4.3: Critiques about shop control by the HCMC....49 Table 4.4: Anticipated tourist numbers by Lijiang Tourism Bureau...51 Table 5.1: Interview opinions about interaction of tourism and conservation..54 Table 5.2: The development of a mechanism of collecting the Ancient Town Conservation Fee .58 Table 5.3: The interaction between tourists, residents, shop owners, government and heritage..67 Table 5.4 Structure of the above table...68 Table 5.5: Assessment of conservation efforts.....69 Table 6.1: The evaluation of the scenarios based on criteria.92
List of Boxes Box 5.1: Examples of public education about heritage conservation in Germany..82 Box 5.2: Public education for appropriate restoration in Lijiang.83 Box 5.3: Examples of interpretation in historic towns. 84 Box 5.4: The commercial activities in historic towns....84 Box 5.5: Promotion of cultural activities in historic towns...85 Box 5.6: The market square....85
Chapter 1 Introduction
1.1 Rationale
It seems that there is a dilemma between the economic development and heritage conservation.
The tourism industry in historic towns such as Lijiang has a significant impact in the built environment, local economics, culture, and the community. Tourism influences city development in both positive and negative ways. Under this situation, urban conservation has its own characteristics. Urban conservation has new problems because of tourism development. This research tries to identify the problems brought about by tourism in historic towns, it considers integrated urban conservation and it tries to find out how to manage heritage in a proper way.
This study is intended for planners, scholars and researches in the area of urban conservation, cultural tourism and heritage management. This study will provide a detailed understanding about heritage management in Lijiang. In addition to this, it will provide detailed information useful for research in this area.
1.2 Objectives
The main objectives of the study: To identify tourism development and conservation efforts since year 1994 and find out the actors, private or public. To structure actions, interventions, incentives and projects in order to support future integrated tourism development and urban conservation. To identify for the future, the most important actions which the private or public sectors will play. These may be either positive or negative roles in the process of heritage management.
1.3 Methodology
This study was mainly based on reviewing literature, case studies and analysing data in the following way, Reviewing literature Literature in this thesis was collected by gathering information, carrying out background reading and critically reviewing research in this field and theories related to this topic were analysed. Survey and interviews A questionnaire survey was undertaken which was organised by Tongji University for the project of the Master Conservation Plan of Lijiang in August 2002.
In March 2004 interviews were conducted, as a fresh supplement to the questionnaire survey. This enabled author to get information about the present situation. Data Analysis Author got the figures and facts in this thesis by reproducing and collecting information, statistics, searching for literature about tourism development in Lijiang from certain departments, bureaus and institutes such as the tourism bureau and the city statistics office in Lijiang.
1.4 Scope
The defined scope of the study is urban heritage in China.
Lijiang was chosen as a representative town for urban heritage in China. This was done in order to study its past, present and its future possibilities. Lijiang is one of the most typical tourism towns in China which has undergone major changes in the last 2
20 years in terms of social, economic and cultural development due to rapid tourism development. It is the first town in China where great conservation efforts have been conducted. This thesis does not cover all the historic towns in China, but the case of Lijiang has some characteristics and features with other historic towns.
The way it may go and should go could be referred to other historic towns in China which are under present or potential future pressure from tourism similar to Lijiang, while most of them are being actively promoted to develop tourism by the local governments. The study of this town discovered the similar or contrary fates of many other towns which have experienced the same dramatic political, economic reforms in the past half of the century in China.
The discussion about heritage mainly focuses on the built environment. The economic and social aspects are mentioned, but are not the main emphasis in this research. For instance, when discuss about the impact of tourism on heritage, the impact on the built environment is regarded as the main emphasis.
1.5 Justification about the year 1994
In October 1994, a conference held by the provincial government with the topic of Northwest Yunnan tourism planning had significant impact on Lijiang. Firstly, the development strategy about Lijiang city was identified as the tourism industry. Secondly, a decision was made to apply for enlistment as a world heritage site, which meant that serious conservation work had to begin. Since this year, Lijiang has undergone huge social, cultural, economic changes. The old town of Lijiang, a small town hidden behind mountains is well-known by the world for hosting more than three million visitors a year (2003).
Figure 1.1: Structure of the thesis
Past and Present: 1994-2004
Future
Literature about heritage management
Chapter 3: Conservation assessment Chapter 1: Introduction Chapter 2: Background about urban heritage in China Chpater 5: Management assessment Chapter 4: Tourism assessment Chapter 6: Scenarios for the old town Chapter 7: Recommendatio ns for heritage management Referring to other urban heritage in China
Considering different stakeholders
Source: Authors summary.
Chapter 2: Concept framework

2.1 Identification of urban heritage in China
Urban heritage in China has undergone dramatic political and economic reforms. In the long history of China, from feudal time to modern time, the central government had powerful intervention on the built environment. The identification of urban heritage changed with the change of regime. It was the year 1949 when the Peoples Republic of China was founded.
2.1.1 Before 1949 Feudal time: Heritage as a symbol of the former regime, demolition of precious constructions
Heritage, relics, is taken as the symbol of the past. New governors who took over the previous regime always destroyed visible constructions especially magnificent palaces of previous governors. In history books, there are many records about how rebel armies burnt the palace after they occupied the capital. Therefore, apart from the problems of fire and decay to Chinese wooden architecture, the ideology of the governors determined the difficulties in heritage conservation. Despite the long history of civilization (more than 2000 years), only a few buildings older than 1000 years exist now. Most ancient buildings which can be seen now were built during the Qing Dynasty (about 200 years ago), though some were built during the Ming Dynasty (about 300 years ago). Compared to Europe, the ancient fabrics which are more than 1000 years are in big numbers. The beginning of democracy: Heritage as culture, the beginning of conscious conservation by Kuomintang (1912-1949)
In the late 19th, with the coming of colonists, foreign scholars and missionaries came to heritage sites in China and many precious masterpieces were robbed or stolen and taken to foreign countries such as the famous grotto in Dunhuang. Now you can
find them presented in The Great Britain Museum and other museums in France, Germany and other European countries.
In 1922, the first heritage conservation academic institute, The Institute of Archaeology was founded in Beijing University. The Kuomintang government issued The Antique Conservation Law in 1930. Two years later, The National Heritage Management Committee was founded. Because of the chaos during the wars, real conservation work was not carried out. Most antiquities were abandoned.
2.1.2 After 1949 1950s to 1960s: Heritage as culture, the beginning of conservation After the foundation of the new country, the government issued laws and regulations about antiques. An antique conservation system had been developed in mid 1960s. But the work only focused on single monument conservation.
During this period, the house ownership was changed from private ownership to collective ownership. Some historic buildings which had private ownership were taken over by the government. They were changed to collective ownership which meant that houses no longer belonged to the original owners but to the nation or community. The government allocated these houses to more people to live there for free. On the one hand, the rising population density per house increased the deterioration of the buildings. On the other hand, due to unclear ownership, people who lived in these houses did not care about maintenance of the property. Both factors brought difficulties for heritage conservation. Since the economic reforms in the 1980s, properties were partly returned to the original owners. This situation is similar to the some historic towns before and after reunification of Germany, for instance, Quedlinburg.
1960s to 1980s: Heritage as a symbol of the feudal system, the Cultural Revolution getting rid of culture and traditions
During the Cultural Revolution (1966-1976), which was a political movement initiated to distinguish communist culture from other cultures, heritage was regarded as a backward thing and the relics of feudal system. Therefore, all of them had to be demolished, including temples, palaces, historic houses and almost everything with historic information. The great impacts of the Cultural Revolution on heritage are as follows:
A lot of damage was made to heritage in the whole country. Sculptures, paintings, houses were destroyed because they were regarded as relics from the feudal times which were in conflict with the communist ideology. 1980s to 1990s: Heritage as a useless obstacle, new constructions neglecting heritage
The open policies and economic reforms brought a huge scale of new constructions all over the China especially in the eastern part of China which had and still has a better economic development than the western part. Many historic districts were seriously damaged or even totally demolished by fast industrialization and urbanization. 1990s to 2000: Heritage begins to be realized as having value, facing opportunities and threats
With speedy economic development, heritage has been facing threats from new constructions. More and more precious heritage was destroyed because of ambitious of land development projects.
On the other hand, speedy economic development started to bring a tourism boom in China. Towns with historic information became tourist attractions. Because of tourism, people increasingly realized the value of heritage. Efforts were made gradually to save heritage by few organisations. 7
Some historic towns which were remote from economically developed areas had transportation which was inconvenient and faced shortages in investment.These historic towns were isolated from the construction wave. For that reason, they still keep the authenticity and became the attraction for tourists. Zhouzhuang, a small water town close to Shanghai, is one of these cases. The big success of tourism in this kind of cases helps to realize the value of heritage and importance of conservation. 2000 to the present: Heritage as a resource for economic development, facing different trends
The inscription of two small towns (Lijiang and Pingyao) as World Heritage Sites in 1997 brought the boom of heritage tourism. The national and local governments began to put emphasis on the conservation of historic towns. Chaotic construction activities on heritage sites began to be controlled however, only a few extraordinary towns participated in this initiative.
From 1997, a conservation fund for national historic towns was founded by the National Finance Ministry. The funds have been used for the architecture restoration and infrastructure construction in selected districts in historic towns. This action promoted the attention to urban heritage all over the country.
During this period, there have been some predominant phenomena in urban heritage. One is the renewal of historic districts, represented by Beijing. Old districts were reconstructed to modernized districts. Beijing is the political centre in China. The urban construction in Beijing has strong influence in the whole country. For example, when the ancient city wall was destroyed in Beijing in the 1950s shortly after foundation of PRC, the same thing happened in numerous cities in China. Following Beijing, other cities would follow to destroy the old districts in the city centres.
The second is the gentrification of historic districts, represented by Shanghai. Shanghai is the economic centre in China. The success of this case would have similar urban fabric development in other commercial cities. Historic districts in the
city centre were restored by developers and transformed as places for luxurious entertainment.
The third is the tourism park, represented by Lijiang, Pingyao (in Shanxi Province, China), Zhouzhang. Historic towns were developed to theme parks aiming at mass tourism.
The fourth is enthusiasm for application of world heritage site, represented by Wuzhen, a small town near Shanghai. The success of mass tourism in heritage sites such as Lijiang and Pingyao promotes the enthusiasm for applying for heritage site status. All these phenomena show the push for short term profits. The real art, history and culture of urban heritage is not seriously considered.
2.2 Present situation of urban heritage in China
2.2.1 The types of urban heritage in China
There are three main types of urban heritage which can be found in China now. The whole town as heritage Cities such as Lijiang, Pingyao still keep the integration of the historic fabric. One important reason is that their locations are far from the economic development circle. There are a lot of these towns in Western China. But in Eastern China with high economic development, most of them have been destroyed. Urban structures as heritage Historic settlements on the ground have been destroyed, but historic road systems, river systems, structure axis, or layouts can still be read. Beijing is one typical case.
Part of urban districts as heritage Fortunately some historic districts remained. These remaining historic districts represent a historic appearance of the city. In many cities in China historic districts can be found.
2.2.2 Problems in heritage conservation in China The problem of awareness in heritage conservation In Eastern China where economics is highly developed, heritage is taken as a means for economic development, either to attract tourists or to develop commerce. The real value of heritage is partly realised but not fully respected. In the western China where agriculture is the main economic resource, heritage value is ignored, while the demand for cheap concrete construction is increasing which is damaging the built environment. Monument conservation instead of urban conservation Monuments are regarded as heritage which should be conserved instead of the whole historic environment. Based on this notion, the surroundings of monuments which developed at the same time as monuments were demolished to emphasize monuments. In fact, they are also part of urban heritage which contributes to the cultural significance of the place. Conservation efforts focusing on physical restoration Conservation efforts only focused on the physical restoration such as architecture restoration, infrastructure improvement, not on the revitalisation of the whole environment. Social and cultural integration of urban conservation are less considered. Local communities are almost ignored. This type of urban conservation can not solve social problems; on the contrary, it may bring new social problems.
10
Tourism is the only way for revitalisation Tourism is regarded as the only way for redevelopment of historic districts. Heritage is used as a resource to attract tourists. Around the historic districts, tourism facilities such as hotels, restaurants are constructed which damage the traditional environment of the historic districts. The authenticity of the historical fabric is being lost. Traditional culture and community identity are not respected. Heritage overused as a resource would lose its attraction. In some historical towns in China, instead of a professional bureau, tourism companies have the power over heritage management.
2.2.3 Comparison between China and Europe in urban heritage conservation Policies and organisations In Europe, the conservation system is more established, from the central government, to the state government and finally to the local government. In almost every historic city, there is a specific bureau working on urban heritage conservation. Heritage conservation is well known at different levels. Actions were taken by local authorities under a defined conservation plan. In China, The National Cultural Ministry is more concerned about monument conservation rather than urban conservation. There is no established scientific conservation system. The local government has the power to make decisions regarding urban conservation work. At present only a few cities have began to establish offices for heritage conservation. Lijiang is the pilot city and it is ahead in urban conservation among most of the historic cities in China. Involvement of stakeholders In Europe, urban conservation involves both public and private sectors. Local people who are the owners of heritage put effort to preserve their own properties. Entrepreneurs develop business in a small scale and show the respect for heritage. In China, under the cooperation between governments and developers, historic built environment is changed by some development projects, more or less, mostly projects for tourism commerce, such as shops, hotels and restaurants. In this way, either the local government and the developers get profits, or only developers can get profits. 11
The other stakeholders such as local residents, tourists who do not take part in the decision making process are less considered. Sometimes, residents interests are greatly sacrificed by so-called development projects. For instance, residents are forced to move out of the old town, leave their own houses for the redevelopment of the area while they do not get necessary compensation. Urban revitalisation Urban conservation in Europe is concerned with not only the revitalisation of the built environment, but also the local community, culture and economics. Urban conservation is taken as a way of sustainable urban development. In China, urban revitalisation mainly deals with the promotion of commerce by the redevelopment projects. Revitalisation of the historic districts normally means commercial development and tourism attraction. Public awareness In Europe, public awareness enables the broad participation of heritage conservation consciously or unconsciously by different stakeholders. In China, the value of heritage is not widely realized. At government level, there is an extreme shortage of heritage conservation professionals. This point was discovered in both the survey and interviews by the author. Due to the overlooking of the value of heritage and the need to make short-term profits, decision makers tend to ignore authenticity of heritage to some extent.
In a nutshell, heritage conservation in Europe emphasises on integrated conservation into the overall development of society. Planning for heritage involves making a conservation management plan. In China, however, heritage conservation is the redevelopment of the built environment with a potential economic profit. Planning for heritage involves making a master conservation plan.
12
2.3 Tourism development in China
2.3.1 National policies towards tourism Tourism before the 1980s Mass tourism in China was not popular until the 1980s. Before that, tourism was the privilege of some classes such as officers and artists. The tourism boom in China began from the late 1980s soon after the economic boom due to economic reforms. The highly centralized and planned economy was gradually transformed into a market economy. Tourism policies are a component of the countrys social and economic development and have been adopted with the general orientation of the nation. Tourism development since the foundation of the PRC According to Zhang (2003, p. 24), the recognition of tourism in China has undergone three major changes:
Tourism as a political activity: shortly after 1949, until the economic reform in 1978, there were almost not domestic tourists. Overseas tourists to China were in a small numbers. Those who came to China, it was a result of the good diplomatic relations with their countries.
Tourism as both a political and economic activity: From 1978 to 1985, tourism began to be considered as an economic activity. People with different origins were treated differently. Overseas Chinese and compatriots from Hong Kong, Macao and Taiwan paid much less than foreign tourists without a Chinese origin, although they received the same services.
13
Table 2.1: The Changing Model of Tourism Policies in China

Motivation and Goals 1950s to mid-1970s Political considerations Government reception Without cost-benefit analysis Centralized planning State monopoly The state as the sole investor Guests and visitors from other socialist countries Limited business travel Controlled travel demand Since the early 1980s An economic sector Foreign exchange Profit-making drive Job creation Market mechanism Diversification of ownership Local participation Foreigners from all over the world Compatriots and overseas Chinese Emerging mass domestic tourism Diversified travel motives
Mechanism
International Tourism Domestic Tourism
Source: Xu. 1999, p. 19
Tourism as an economic activity: In 1986, the national government declared tourism to be a comprehensive economic activity with the direct purpose of earning foreign exchange. It was the first time that tourism was included in Chinas national plan for social and economic development. The tourism policy issued in 1984 was a milestone in tourism development in China (Xu 1999, p.25). The highlights of this policy involved four transformations in the overall tourism development.
Table 2.2: The Tourism Policy in China in 1984

Four Transformations Investment Orientation Tourism Promotion Investors in Infrastructure Development Enterprise Management Source: Xu. 1994, p.25 From Reception facilities International tourism The state as the major investor To Both resource development and reception facilities Both international and domestic tourism The state, local governments, collectives, and private individuals; use of foreign capital Independent firms
Government agencies
2.3.2 Impact of tourism on urban heritage
Page, S. has summarized the impact of urban tourism from three perspectives: economic, social and cultural, environmental viewpoints (1995, p.112-156). Referring to China, these impacts can also be used for analysis. Economic impact According to Page (1995, p. 119), there are some commonly cited economic benefits of tourism for urban areas: 14
The generation of income for the local economy
The creation of new employment opportunities for the city locality
Improvements to the structure and balance of economic activities within the Encouraging entrepreneurial activity
In contrast, the costs of tourism to a host city include:

The potential for economic overdependence on one particular form of Inflationary costs in the local economy as new consumers enter the area and potential increases in land prices as the tourism development cycle A growing dependence on imported rather than locally produced goods, services and labour as the development of facilities and infrastructure Seasonality in the consumption and production of tourism services leading to Leakages of tourism expenditure from the local economy Additional costs for city authorities limited returns on investment proceeds commences. activity
Social and cultural impact According to Fox (1977), cited in Page (1995, p. 135), the social and cultural impacts of tourism can be explained by the following:
The social and cultural impacts of tourism are the ways in which tourism is contributing to changes in value systems, individual behaviour, family relationships, collective lifestyles, safety levels, moral conduct, creative expressions, traditional ceremonies and community organisations.
The impacts are due to the effect of outsiders (tourists, entrepreneurs) on host communities and their relationships.
15
Environmental impact Environmental impact deals with the built environment. It is summarized by Page as follows in the table below:
Table 2.3: The impact of tourism on the urban environment

1 The urban environment Land lost through development which may have been used for agriculture Change to the hydrological system 2 Visual impact Expansion of the built area The effect of new architectural styles Population growth 3 Infrastructure Overloading the urban infrastructure with the following utilities and developments: - roads - railways - car parking - the electricity grid - waste disposal and water supply Provision of new infrastructure Additional environmental management measures to accommodate tourists and adapt areas for tourist use 4 Urban form Changes to the land use as residential areas see hotels/boarding houses develop Alterations to the urban-fabric from pedestrianisation and traffic management schemes to accommodate tourists Changes to the built environment lead to contrasts in the quality of the urban areas used by tourists and residential areas 5 Restoration The reuse of redundant buildings The restoration and preservation of historic sites and buildings Source: Page. 1995, p.147
2.4 The way forward: the future of urban heritage in China
2.4.1 Weaknesses and threats
The deterioration of urban heritage needs a lot of input. Lack of maintenance is a big problem affecting urban heritage in China; especially in places where ownership of property is not clear due to house allocation policies in the 1950s (See 1.2.2). The living conditions in local communities are not good enough. Because of various difficulties, historic districts are big challenges for local governments. Proper development methods are difficult to find out. These historic districts are either
16
ignored or simply reconstructed. Once developers want to put finance and reconstruct, the value heritage is easily overlooked.
Decision makers at different levels lack awareness about the value of heritage. Most decision makers do not realize the authenticity about the value of heritage. There are many cases where authentic heritage fabric has been destroyed while nearby a totally fake district (normally for commercial tourism) is newly built. Heritage, either is got rid of, or used in a wrong way, has not been widely recognised by the public, especially decision makers.
Heritage conservation is under the pressure for modern development. The pressure from modern development comes not only from external influences, such as decision makers and developers, but also from internal actors like residents. Aiming at socalled modernisation, local authorities are fascinated by modern skyscrapers and western style architecture. Residents want to change historic fabric for the adoption of a modern life. Compared to big financial and technical inputs used for authentic restoration, modern buildings with cheap concrete and glass are more convenient to construct.
2.4.2 Strengths and opportunities
Rich heritage resources exist in China. Although in Eastern China where urban heritage is under big pressure from the so-called modernisation drive, in the West where agriculture is a more predominant economic activity, the historic fabric is still intact. Heritage is still kept untouched. This wins high respect and reputation from the few visitors.
Increasing emphasis on heritage conservation has also been made. The value of heritage has begun to be widely realized. The central and local governments put more and more effort on heritage conservation. The inscription of world heritage sites promotes the understanding of heritage. Domestic tourism boom draws the high attention to heritage places which are the more frequently visited places. The outstanding conservation effort conducted in Lijiang, although with some problems, is
17
a milestone in present China which has a significant influence on other heritage places.
Rapid economic development in China provides possible financial support for heritage conservation. The central and local governments can now have more revenue for heritage conservation. Private funds from property owners and donors are now more readily available. The economic boom has also resulted into massive tourism development in China which has both positive and negative impacts on heritage places.
18
Chapter 3: Urban conservation in Lijiang

3.1 Introduction of Lijiang
3.1.1 The location and population size of Lijiang City
The old town of Lijiang can be found in Lijiang Naxi Autonomous County which is in the Yunnan province at the Northwest corner in the southwest of China. (see Annex 2.Box 1). In the plain area where Lijiang is located, this area is about 5% of the total land area of the county. The remaining area is predominantly mountainous. Jade Dragon Mountain is the highest mountain in Lijiang and the most famous in the area. It is also holy for the old town of Lijiang.
Lijiang city is located on a plateau at a height of over 2,600 metres above sea level. Its entire area is about 3.8sq.km. The city includes the new town and the old town (See Annex 2: Box 2) which was listed as a world heritage site in the year 1997. The old town is about 1.4 km (143.6 ha) with the population about 14,000. An ethnic group called Naxi has the percentage of about 88% of the whole population in Lijiang. Lijiang city is the most concentrated area in China for the Naxi minority.
In the north of the city there is the Elephant Mountain and Jinhong Mountains, which give the city constant protection from winter winds. To the west is Lion Hill, which separates the old town and the new town naturally.
3.1.2 Urban development in Lijiang: from a trade centre to a tourism town
The ancient town of Lijiang which is also called Dayan was at first built towards the end of the southern Song Dynasty in the period ( 1127 AD- 1279 AD) and at a time when the Yuan dynasty had just began (1279 AD- 1368 AD)
19
In 1256 AD during the autocratic rule of Genghis Khan who was the grandson of the Kublai Khan, an administrative was opened by Genhis Khan who was also the founder of the Mongol dynasty and made Lijiang his civil and military protectorate. Since this time the town has been called Lijiang Lijiang was a significant trade town in the old Tea Horse Caravan Route, this was essentially between the area of Yunnan and Tibet stretching up to India. This made it a centre for commerce and exchanging culture. Many ethnic minorities have contributed to the progress of the town. The ethnic groups which have contributed to this progress include; the Bais, the Tibetans, the Hans and the Naxis. At the beginning of the Yuan dynasty over 1000 families lived in the ancient town of Lijiang. The town prospered and reached its climax during the Ming and Qing dynasties from 1368 AD to 1911 AD respectively.
Business brought prosperity to the old town. The Market Square lies at the core of Lijiang, which is one of the main trading markets at the Ancient Tea Horse Caravan Route.
The function of the trade centre in the region declined with the development of other transport means. The town has since become quiet.
This continued until the development of tourism brought great changes to the old town since the 1990s. Its history has become an attraction for outsiders. In 10 years, from 1994 to 2003, tourism numbers have increased from 0.2 million to 3 million.
3.1.3 Urban structure in the old town of Lijiang: the town without city wall
The urban fabric in Lijiang is unique in China because it does not follow the traditional mainstream pattern used by most Chinese cities with grid streets and city walls. This can be explained by two reasons. One is that Lijiang is in a Mountain area. It is different to build a city strictly with straight streets and buildings. The other reason is that Lijiang is in the southeast of China, which is far from the central government in Beijing. Local culture dominated the city. The urban structure of the old town keeps its own order.
20
The urban structure of the old town follows the order of respecting nature. Lijiang people have their own understanding of harmony with nature which is different from Fengshui Theory. The order is following the terrain of mountain and rivers. Its mountainous setting and streams have shaped streets and lanes. Yu River comes from the north and then it flows into three branches, from which, the water divides into a network of streams and channels, providing fresh water to every part of the town (See Annex 2: Box 3). The streets and houses have been built in a way so that they can follow the layout of the land and flow of the rivers. Inhabitants built their houses near the waterways.
3.1.4 Vernacular architecture in Lijiang
Vernacular architecture style is a blend of styles from different ethnic groups: Han, Bai, Zang. The flexible wooden framework makes it possible to resist earthquakes. Special construction techniques have been developed to ensure that the frames survive even if the walls collapse. The typical layout of the houses is a four-sided compound with a central courtyard (See Annex 2: Box 4). Balconies at the second stories are open to the courtyards. The detailed elements such as doors, windows, screen walls and roof beams are carved with representations of flowers, birds, fish, and folklore stories.
3.2 Urban conservation in Lijiang
3.2.1 Urban conservation in Lijiang before 1994
During the Kuomintang Government and after the foundation of the Peoples Republic of China in 1949, urban conservation was not recognised by the authorities until the year 1951 when a significant decision was made to leave the old town and develop the new town.
In 1951, the Lijiang local government issued a policy that the old town should be conserved and the new town developed beside the old town. In most historical cities in China including Beijing, the new town is built on the layer of the old town. That definitely causes unavoidable big conflicts between heritage conservation and 21
modern development. The old town is difficult to adjust to the modern life. The pressure from infrastructure and economic development pushed the historic fabric to adjust to a new use. In most cases due to a lot of pressure the old town has been partly or totally destroyed. The decision to have a new town developing beside the old town is very important for the future conservation of the old town.
3.2.2 Urban conservation in Lijiang since the year 1994 Organisation concerning heritage conservation The territory of Lijiang city includes four prefectures and the old town (see Annex 1: F1). Most of the conservation activities in the old town are directly under the control of the Lijiang city government.
The Heritage Conservation and Management Committee (HCMC) is the conservation office in Lijiang. The HCMC members are officers in the city government. These include the city mayor, Communist Party Leader. The HCMC has the highest
decision power on the conservation work in the old town. The HCMC has two branches: the committee office and the committee company. The committee office is the executive agency of the HCMC. The committee company is in charge of project implementation and raising funds.
The HCMC is the first municipal organisation in the local government in China which specialised in the conservation of the old town. Its foundation symbolizes the new progress of heritage conservation in China. A UNESCO workshop in 2001 (see 5.4.2) promoted its foundation. It is directly under the city government. The head of the committee is at the same time the head of government. On the one hand, with the great support from authorities it is easy to implement plans and projects. On the other hand, due to lack of awareness, insufficient professionals, corruption and other factors the decision makers may decide the plans or projects which have negative impact on heritage due to the power of authorities. Corruption in municipalities may also lead to some corrupt projects which have a negative impact on heritage. In an interview, one person mentioned that corruption existed in the project of demolishing
22
historic
districts
and
new
construction
for
tourism
commerce
(Nanmen
Reconstruction Project).
Table 3.1: The development of the organisation dealing with conservation after 1997 (the year of World Heritage inscription)
Year of foundation Before 1998 1998 1999 Name of office City construction bureau Authorization The Lijiang City government The old town government The old town government The old town government The Lijiang City government The Lijiang city government Work field All the construction activities in the city, no conservation effort Sanitary work in the old town Safety and fire emergency in the old town General management in the old town Safety and fire emergency in the old town Conservation and management in the old town
Foundation of management office
Foundation of the security and fire brigade 2000 Foundation of management committee 2001 Further development of the security and fire brigade 2002 Further development of the management committee: Heritage Conservation and Management Committee (HCMC) Source: Authors summary based on the HCMC work report
Policy intervention on heritage conservation Before the establishment of the HCMC in 2002, most policies were issued by the old town government, the Lijiang city government and provincial government.
The first task of the HCMC was the development of the Master Conservation Plan of the old town (MCP). Shanghai Tongji Urban Planning and Research Institute was invited for the planning work. After the MCP was completed most of the work of the committee is the implementation of the MCP. Projects dealing with heritage conservation On the 4th of December 1997, the old town of Lijiang, together with another old town in China was inscribed on the World Culture Heritage List. It was the first time in China that the whole town was inscribed as a world heritage site.
23
After the foundation of the HCMC in 2002, a series of conservation projects were carried out. The first task which the HCMC did was the development of the Master Conservation Plan. The following projects are the implementation of the master conservation plan (see Annex1: Table 2).
Table 3.2: Policies dealing with heritage conservation in Lijiang

Year 1951 1983 1994 Conservation policy Development of the new town, conservation of the old town Identification: the conservation of the old town in the Lijiang county master plan Application for enlistment as a world heritage site Lijiang conservation and management regulations 1995 Lijiang historic town conservation master plan Authorities The old town government The old town government Provincial government Provincial government Provincial government The old town government The old town government The city government The old town government The city government The city government the HCMC the HCMC peoples congress of the old town the HCMC the HCMC significance significant decision Identification Significant, turning point Further development The first conservation plan Infrastructure Traditional architecture Significant Society intervention Promotion for conservation Organisation significance Planning significance Tourism controlling Considering local culture Considering local culture Considering about local people
Lijiang old town fire control safety regulations The enlistment of 140 important courtyard households 1997 2001 2001 2002 2002 2003 The restoration project due to earthquake House and business management regulations in the old town The UNESO workshop: Lijiang Model concerning conservation and tourism development, held in Lijiang Foundation of the HCMC The development of the Lijiang Master Conservation Plan Permission regulations for shop running Development of Naxi language curriculum in primary schools. Grade one to grade four, two classes every week Provide free houses to for local cultural presentations Establishment of resident service centre to help local residents for transportation Source: Authors summary, based on the HCMC work report
The Master Conservation Plan is respected and implemented in Lijiang. This is a big success in China. Most conservation plans in historic towns are developed but not implemented because of several difficulties which include inadequate finances, insufficient technology and pressure from new real estate development.
3.3 Finance for urban conservation in Lijiang 24
3.3.1 International fund: Global Heritage Fund (GHF)
The old town gets financial support from The Global Heritage Fund (GHF). The GHF is a registered non-profit conservancy based in Palo Alto, California, USA. The GHF evaluated the old town in the following words (GHF official website):
The Ancient Town of Lijiang is at risk of losing the last remnants of its ancient heritage and culture due to its recent tourist popularity and poor planning decisions. New 'modern' construction is strangling the ancient town while many of the ancient residences have been abandoned because of the prohibitive cost of authentic restoration.
Based on this evaluation, the following projects were financed by GHF. The development of the Master Conservation Plan (MCP). To avoid poor planning decisions, the first project which the GHF financed was the development of the MCP. In 2003, the MCP was organised by the HCMC, co-financed by GHF and the Lijiang local government. The second project by the GHF is to finance the restoration of the ancient residences. Because of the prohibitive costs of authentic restoration which is difficult to afford by the local people, many historical residential houses are either in bad condition, lacking maintenance or replaced by buildings made from cheap concrete material.
There are two hundred historic buildings in the old town which endangered. The first sixty ancient residences have been restored in a pilot project. The GHF provided subsidies in partnership with the Chinese government. The money goes to each local community committee instead of the government to make sure that money is used for restoring houses. In the year 2003, 500,000 RMB was financed by the GHF for 60 residential buildings. The restoration project has been finished. It is planned that by the end of 2004, about 800,000 RMB would have been used for 100 residential buildings.
International funds can be used directly for specific projects without going through bureaucratic procedures which are very effective and efficient in project implementation. Some important projects may be overlooked by the local authorities 25
because of less short-term profit returns; however, international financiers consider all the projects regardless of the profit margins. One of the disadvantages of applying for international funds is that they require a complicated procedure for application. There are also limited funds and it is time consuming to apply for them. It is a good financial source but can not be relied on for heritage conservation. 3.3.2 Government revenue
The financial system for heritage conservation in China has not yet been built. There is no specific and stable money supply for conservation. All efforts which deal with financing heritage conservation are made by the local government. Although the value of heritage has been widely recognised by the Lijiang local authorities, the local government does not have enough funds for heritage conservation.
The finances from the local government budget are very limited. But in Lijiang, a lot of efforts have been made to raise funds for heritage conservation. For instance, in December 2000, the old town government gave a subsidy of 200,000 RMB to the 97 enlisted historic buildings. Each household was given about 500-5000 RMB according to the degree of deterioration of the house.
3.3.3 Bank loans
The management company of the HCMC has cooperation with two banks which offer loans for restoration. These two banks are; China Commercial Bank and China Construction Bank. Altogether, the maximum available amount of money banks can offer is about 6,000,000,000 RMB. Every year, the committee company of the HCMC lends loans amounting to about 300,000,000 RMB.
3.3.4 Finances from tourism: the Ancient Town Conservation Fee (ATCF)
It was planned so that they could take an entrance fee from tourists. On one hand, it can contribute to finances for conservation; on the other hand, it can help to control the number of tourists. The old town of Lijiang is a National Scenery District which allows charging an entrance fee. The entrance fee is reasonable and fits within the
26
relevant policies. This fund is stable and abundant. It had been well planned, discussed for almost two years but it failed for unclear reasons.
Instead of an entrance fee, the substitute fee is called the Ancient Town Conservation Fee (ATCF) which is charged from tourists. The fee is explained as an administrative fee which does not fit into the relevant charging policy of the central government. Although this action was authorized by the provincial government it can not find a supportive policy or law.
In Lijiang, every tourist is charged 40 RMB once for the whole trip which goes to the HCMC directly. All the income contributes to the conservation of the old town. (See 5.4.2)
Table 3.3: Fees from the ATCF in Lijiang

Year Year 2001 year 2002 Total income RMB 9,500,000 RMB 44,620,000 Source: Authors summary, based on the HCMC work report. year 2003 RMB 54,540,000
The way of collecting money has been a subject of discussion. In the beginning, it was collected by hotels. The money was collected from all the guests who stayed in hotels both in the old town and the new town. For people who stayed in the new town but did not come to the old town for a visit, the fee was also taken. This was not fair for this group of people.
From the year 2002, the ATCF has been collected at the entrance of the tourist site: the Yulong snow mountain. The way of collecting has also been a problem. Only those who go to this specific tourism site are charged. Although it is a hot spot in Lijiang, it is not possible to charge all the tourists. If we calculate the tourist numbers in 2003 according to the ATCF, we can get a tourist number which is much less than the one from the Lijiang Tourism Bureau.
According to ATCF, in the year 2003, the total fee collected was RMB 54,540,000.
Tourism number = (RMB 54,540,000) (40 RMB/ person) = 1.36 million Official tourist numbers by the Lijiang Tourism Bureau in the year 2003: 3.30 million
27
Obviously, tourists who visit the Yulong snow mountain are only part of the total visitors.
3.3.5 Private financial resources
Private financial resources include funds from real estate developers and funds from house owners.
For real estate developers, the funds for the projects are the investment to get profit returns.
For residential houses, local people contribute their own money for house restoration. Financial support from government or foundation can stimulate their desire for house restoration but can not be the total money needed. For shop owners, they will restore the houses for commercial use.
3.3.6 The summary of different fund sources
Among all the financial sources, bank loans contribute the biggest part. Repaying the loan is another problem. The borrower is the government; therefore, the bank does not worry about the repaying. The ATCF is a big success to charge users of heritage to pay for use, which is recommendable to other historic places in China. But other users escape from charging, such as shop owners, real estate developers. They pay a normal fee for business as in places without a heritage site.
If we compare different fund sources, they have their own advantages and disadvantages.
Compared to the bank loans, international funds and government revenues are extremely small. The ATCF is an important source of finance for urban conservation.
28
The problem with bank loans is how to repay them to the bank. From a long term view, the ATCF is a sustainable way of raising funds.
Table 3.4: The comparison between different funds for urban conservation in Lijiang
Efficiency and effect Effective and efficient. Used directly for specific projects without going through the bureaucratic procedure. Important projects may be overlooked by local authorities because of less short-term profit returns Efficient, effect depending on the quality of decisions Efficient, effect depending on the quality of decisions Efficient, effect depending on the quality of decisions Efficient, but normally ineffective due to the feature of investment activities Efficient and effective

Fund Amount
Sustainability
Feasibility
International fund Public fund Government revenue Bank loan ATCF Real estate developers
Very limited
Not stable, unsustainable
Complicated procedure for application time consuming, difficult to get
Limited Unlimited Limited Limited Very limited
Sustainable Very unsustainable Very sustainable Sustainable Sustainable
More and more easy to get Easy to get Easy to get Easy to get Easy to get
House owners Source: Authors summary.
Private Fund
In Lijiang, bank loans are the main source for financial support for heritage conservation.
Table 3.5: The public fund and sources for urban conservation in Lijiang
Source International Fund Government revenue Amount (RMB) 1300000 200000 Source: Authors summary, based on the HCMC work report. Bank loan 300000000 ATCF 108660000
29
Figure 3.1: The proportion of different fund sources
ATCF 26%
International Fund 0%
Government revenue 0%
Bank loans 74%
Source: Edited by author.
3.4 Attitudes of different groups about conservation: residents, tourists and shop owners (See Annex 4)
Local residents: They appreciated the efforts done by the government, especially infrastructure construction, but they also pointed out that corruption exists in the government. It is difficult for corruption to be known by shop owners and impossible to be known by tourists. Being local residents, they showed a lot of concern about their community and the living environment. They complained about the inconveniences to live in the old town such as restrictions of motor cars and restrictions on sun energy facilities. The water from the rivers is not as clean as before and is not allowed to be used now. They feel not as safe as before. They pointed out that many local residents left the old town. Local residents realized that there is a lot of profit in the tourism industry, but some of them could not get it. Regarding conservation, they mentioned that the new constructions damaged the old town. They also pointed out that only the faades, not the interior of the buildings are conserved.
Tourists: They gave the highest number (16) of positive opinions among three groups. Tourists only come for a short time. The town has a fresh image for them. As outsiders, most of them are satisfied with the old town, therefore, they gave the highest number of positive opinions among three groups. Tourists are concerned about the finances for conservation. They are willing to pay for it. Tourists pointed out the problems of loss of authenticity and the theme park phenomena. This showed 30
that they like an authentic town as opposed to fake architecture. One of the interviewees gave an opinion that conservation is a governments job. This showed that there is lack of awareness for conservation and cooperation among stakeholders.
Shop owners: They come from outside and they live in the town for some time (from several months to several years). They know about the town and the changes in the town. In fact, their opinions represent the real problems of the town. They gave 19 negative comments, more than any of the other two groups. Shop owners gave very critical comments about conservation in Lijiang such as facadism, the theme park phenomena and lack of professionalism in restoration. On the issues of authenticity, commercialisation, gentrification, heritage management, facadism and the theme park phenomena, 12 people gave opinions (In the other two groups, 8 tourists and 6 residents gave their opinions). Some of the shop owners interviewed were artists or professionals in some fields. They not only pointed out problems, but also gave very good and professional suggestions about conservation of the old town during interviews. But the local government did not consider their opinions, according to what they said. They were not satisfied with some municipal actions but had to obey them. There are some conflicts between shop owners and the government. They appreciated the conservation work. The largest number of the shop owners interviewed had a good opinion about the government.
3.5 Overview and recommendations about heritage conservation in Lijiang
3.5.1 Lijiangs fortunate history: An important government decision which determined the fate of the old town
The decision of developing the new town in 1951 was made by the local government and it saved Lijiang from later mass modern constructions which happened in most historic cities in China since the late 1980s. It is not clear how the authorities at that time took this decision while most Chinese cities built new towns on the layer of the old towns. Beijing was the vanguard in demolishing hundred years of the old city wall and constructing the new buildings on the old fabric. Following the central government in Beijing, almost all the other cities in China got rid of the ancient city walls and reconstructed the old town. 31
With the construction of the new town, the old town was abandoned by the mainstream urban development. Only few artists, foreigners and individual visitors came to the old town. The life of residents in the old town did not change much until 1994.
A decision was made by the government to revitalize the old town when the value of tourism was realized. This was done by the head of Yunnan Province during the period when there was rapid economic development from the 1980s in China. It was the first time that conservation was put on agenda. And it is also the first time that the tourism industry received much attention. Conservation and tourism took place in the old town almost at the same time.
3.5.2 The present situation: challenges and opportunities
As evaluated by the Global Heritage Fund (GHF official website): The Ancient Town of Lijiang is at risk of losing the last remnants of its ancient heritage and culture due to its recent tourist popularity and poor planning decisions.
Since the foundation of the HCMC, a lot of effort has been put in heritage conservation. The achievement is remarkable in China. The government showed full respect for the Master Conservation Plan which was a significant progress in China. In the year 2003, eight big projects were implemented with a lot of financial input. More projects are planned to be implemented in the following years. It is one of the few historic towns in China which has completed infrastructure constructions and is appreciated by different groups (See 3.4). The speedy conservation efforts showed the governments awareness and resolution on conservation. On the other hand, rapid efforts on projects which are not carefully thought about bring new problems to the old town. Although most projects followed the newly finished Master Conservation Plan, the implementation of the plan is subject to misunderstanding.
3.5.3 Comparing the ATCF and the entrance fee
32
The ATCF can help to collect fees for heritage conservation, but it does not have the other function as the entrance fee has to avoid overcrowding. The location of the fee collection centre can have certain control on the number of the tourists who visit the Snow Mountain, but concerning the old town, it does not have any power to control tourist numbers. Tourists are extremely welcomed by the local authorities although the crowd is already a problem. A good example of entrance fee for the old town is in Bhaktapur in Nepal. Tourists are charged entrance fees. The tranquil residential area seems little disturbed. Local people still do their pottery in the streets. At the same time, income from entrance fees is used to benefit the restoration of historic sites in the old town. With the increase in tourist numbers, collecting entrance fees is a good mechanism to control tourist numbers. From a short-term perspective, the control of tourist numbers may influence the income collected; while, from the long-term consideration, the limited tourist number can have the following advantages: It can avoid crowdedness; hence the visitor experience could be enhanced. The good quality of visiting experience can keep the popularity of the site in the long term.
The old town could more easily to keep unspoilt or less spoilt by overcrowding. Therefore, controlling tourist numbers is a sustainable way for tourism development. Unlimited mass tourism can only cheapen the site and lead to the deterioration of the environment.
3.5.4 Doing as little as possible and as much as necessary
The biggest success in heritage conservation in Lijiang is the awareness of the value of heritage by all groups in society, especially decision-makers. Since they have powerful intervention in the old town, what they do has a strong impact in the old town. In that case, the effort they put in determines the future of the old town. Once decision makers realize the value of heritage, they do as much as possible though the decisions for heritage conservation may be unnecessary or improper. For instance, big scale projects are being constructed or those which planned to be constructed for tourism facilities around the old town. Once restoration began, the authenticity disappeared. 33
The town developed by itself. The historic fabric was formed by itself. To keep its authenticity, minimum intervention should be applied.
Chapter 4: Tourism in Lijiang

4.1 History of tourism development in Lijiang
4.1.1 Policies and projects dealing with tourism development in Lijiang
Tourism development in Lijiang began when economic reforms in China began (See 2.3.1). The national policy has a great impact on tourism development. For the old town of Lijiang, policies from the provincial level determined its mass tourism development. These policies directly lead to the projects aiming at tourism development such as infrastructure construction. When the Yunnan provincial government decided to develop tourism and construct infrastructure facilities in 1994, the tourist number in 1995 increased 2.8 times than the year before. In China for a town with a population less than 10,000 like Lijiang, airport construction is rare. Airport construction in Lijiang is ahead of railway and highway construction. Until now, tourists come mainly by air while the local people take cheap and time-consuming highway transport. Railway construction has just begun. The following table shows the important policies connected to the mass tourism development.
Table 4.1: Important policies and projects dealing with tourism in Lijiang
Year 1992 Policy Lijiang Yulong snow mountain is authorized as the provincial tourism development area. the Southwest Yunnan Authorization Yunnan Provincial Government Yunnan Significance on tourism Symbolized the beginning of tourism development in Lijiang Identification of the tourism Projects Improvement of the telephone system Construction of
1994
34
tourism planning conference was held
Provincial Government
industry in Lijiang; The beginning of the tourism boom. Significant Earthquake made Lijiang well-known, reconstruction brought reputation. For the first time during that year the tourism number went over 1 million. Fame for Lijiang, attract more tourists Cultural activity as a means to promote tourism
Lijiang airport; Two highway constructions A big reconstruction project Construction of cable-cars in snow mountains
1996
Reconstruction policy due to earthquake happened in Lijiang
Lijiang city Government
1997 1999
2003
Inscription of world heritage site Sub-host of World Expo together with Kunming (Capital city of Yunnan Province) The municipal territory reform for tourism
UNESCO Yunnan Provincial Government Central Government
Politics as a means to promote tourism
Source: Authors summary based on officers interviews.
Figure 4.1: The increasing tourist numbers (1990-2003)

The Increasing Tourist Numbers (1990-2003)
4000
3500
3000
3380 3220 3010 2900 2600
Tourist Number
(Unit: thousand)
2500
2000
2013 1733 1105
1500
1000
841 217 98 130 163 186

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
500
Year
Source: The Lijiang yearbooks 1990-2003, edited by author : The significant increase in tourist numbers.
The figure shows a continuous increase in tourist numbers since the year 1990 except the year 2003. SARS is the main reason for the decline in numbers in 2003. In spite of the decline in tourist numbers in 2003, tourism income (29 billion RMB) increased by 27.1% in comparison with the year 2002. The most significant increase in tourist numbers was in the year 1995 immediately after the policy was set up to develop tourism in 1994 by the provincial government. Another two significant increases were in the year 1997 and 1999.
4.1.2 Three important years in tourism development (1995, 1997, 1999)
35
The increase in numbers in 1995 was due to a conference in 1994 which approved the tourism industry for Lijiang and promoted infrastructure construction. The Lijiang airport project was proposed in the conference and finished in the following year. Before 1994, it took 15 hours from Kunming, capital of Yunnan province, to Lijiang. Since year 1995, it only takes 1 hour by air and 8 hours by car. Telecom services have also greatly improved since that year.
In 1997 it was the first time that the tourist numbers were over 1 million which has its special reason. On the 3rd of February 1996 an earthquake broke out in Lijiang which measured 7 on the Richter scale. It damaged some of the buildings in Lijiang, but most of the fabric remained unchanged. Walls between the pillars fell down while the wooden structures remained. With the help from native and overseas organizations, the people in Lijiang restored their hometown. The flexibility of wooden structures in Lijiang showed its big charm during this earthquake. The old town gained a lot of fame after the earthquake. There are many reports about the restoration of the old town in the media: newspapers, TVs and radios. These reports included the information about the old town. More people know about Lijiang. There was a big boom in that year in spite of earthquake.
The significance of the inscription as a world heritage site raised more awareness about the value of heritage rather than the promotion of tourism. The day of inscription was the 4th of December 1997, while tourist numbers in 1998 did not increase significantly.
The increase in numbers in 1999 was due to the co-hosting of the World Expo together with Kunming. During that year, the provincial government made policies and the tourist service industry especially hotels was established.
4.2 The impact of tourism on Lijiang
The impact of tourism can be categorized as economic, social and cultural impact and environmental impact. Since the scope of the research is about urban built
36
heritage, the discussion about the impact of tourism has focused on the environmental impact.
4.2.1 Economic impact
Tourism brings a lot of income to the town. The third industry designated by tourism has rapid growth with every coming year, much more than the first and the second industry. The proportion between primary industry, secondary industry and tertiary industry changed from 0.5: 0.2: 0.3 in the year 1990 to 0.3: 0.3: 0.4 in 2000. According to the HCMC work report, 15,000 people are directly involved in the work of tourism, and 50,000 people indirectly involved.
The other economic impact is gentrification. Tourists who come here bring money. Their consumption leads to a high price level in daily commodities. Some residents complained that the price of vegetable was much higher than before. For example, the price of a cabbage is 2RMB/kg. This is the same as the price in big cities such as Shanghai, but their income is much lower (about one fifth) than in Shanghai. Most local people never go to restaurants or bars where tourists go. They go to the bars in the new town where the prices are lower. We local people go to Qixing Street for entertainment not far away from the old town. It is a new street. There are many bars too. One local young person told me.
Just one street away from the old town, the price of strawberry is different. One person sells at 6RMB/kg and only a few local people buy. While in the old town, sellers bring them to tourists in restaurants at a price of 12RMB/kg.
Table 4.2: The price difference in the old town and the new town
Internet bar Beer Restaurant Food Strawberry Source: Authors summary. Inside the old town 5-10 RMB/hour 10 RMB/bottle 10 RMB/plate 12 RMB/kg One street away from the old town 2 RMB/hour 5 RMB/bottle 7 RMB/plate 6 RMB/kg
To protect the local people, the government charges different groups different fees for public toilet use. For tourists, the price is 0.5 RMB per person while for local people it is 0.1 RMB per person. This happens in four star toilets in tourist areas. In 37
the east of the old town where tourists do not go, the condition of toilets is very bad, dirty and smelly. Toilets for tourists can get income from entrance fees, and it gives the old town a good image. The toilets for local residents are not considered by local authorities.
Xinhua Street is the most commercialized streets in the old town. In this street, 50% of the local people left the old town. In Cuiwen and Shuangshi parts where shops are concentrated, all the local people moved away. Only 20% of the shops are run by the local people. Most of the shop owners are from outside. Many residents are willing to rent houses to people from outside for economic reasons. For example, a courtyard with 3 houses can be rented at a price of 1600 RMB every month. With this money, the house owner can get another house in the new town at a price of 300-400 RMB per month.
4.2.2 The social and cultural impacts
One of the social impacts is the movement of the local people from the old town to the new town. In Lijiang, the population of outsiders is growing while the population of the local people is declining. It is difficult to know the exact number of outsiders who live in the old town because most of them are not registered. According to the HCMC work report, the population of outsiders in the old town was 4023 in the year 2002, which is almost 1/3 of the local residents.
The other social impact is more awareness about the value of local cultural by the public. People from outside paid more and more attention to traditional Naxi culture when the local people had gradually forgotten it. The souvenirs with Naxi pictograph language are very popular among tourists. The local government realized that children should be educated about traditional culture. From the 1st of September 2003, a Naxi language course was introduced in all the primary schools, every week two classes. It is authorized by the Peoples Congress, which is the highest authority.
4.2.3 The impact of tourism on the urban environment in Lijiang
38
The impact of tourism on the urban environment includes the impact on the natural environment, the visual impact, impact on infrastructure, urban form impact and restoration impact. (Page 1995, p.147) The impact on the natural environment in Lijiang The natural environment in the old town has deteriorated quickly with tourism development. In interviews, six residents and two shop owners mentioned environmental pollution. They pointed out problems such as polluting rivers and the melting of snow in Yulong Snow Mountain. The following are some facts dealing with the impact on the natural environment of Lijiang.
The frequently mentioned problem is the rapidly melting snow in the Yulong Snow Mountain. The snow on top of the mountain is a source of the water for the whole town, which makes the mountain the holly place for the old town. For thousand years, nobody ever climbed up. Three cable cars were built for tourists to arrive at the peak which obviously lead to the rapid melting of the snow. Falling snow is decreasing each year. It is the most frequently visited site in Lijiang. On 26.01.04 (during the Spring Festival which is the peak season of the year), 12489 persons visited this mountain by three cable cars. In addition, a golf course has been built in the mountain which brings environmental pollution caused by pesticide which is used to keep the homogeneity of the grass.
In Japan, the Fuji Mountain which has snow on the top has significance to the Japanese as the Yulong Snow Mountain to the Naxi people. Fuji is conserved and respected instead of being visited by cable cars.
The other impact is loss of land for agriculture. In the south of the old town, there is farm land. This is the last piece of farm land in the old town and it gives a perfect buffer zone. But it was planned a few years ago by an investor to develop a resort district despite of strong opposition by professionals and the local community. (See Annex 2: Box 5)
39
The deterioration of the quality of water is another impact. The water in the old town comes from the Yulong Snow Mountain. The water which flows directly from the mountain is drinkable. However, after it has passed through the old town it is in bad quality and full of bacteria. Visual impact in Lijiang Visual impact means the physical change of the old town due to unauthentic restoration or demolition. As in many developing countries, most historic towns in China consider more economic development, so-called modernization rather than conservation. Instead of conservation of the physical settlement, historic blocks were reconstructed into a new style or fake ancient architecture. This happened before in Lijiang, but it is still happening today. Unplanned or badly planned development and rapid growth have a strong negative impact on conservation and tourism. The following are some aspects of visual impact in Lijiang.
Visual impact one is the expansion of the built area. In Lijiang, almost all the area surrounding the old town has been developed into a tourism service industry. These concrete modern big scale buildings are located just one street from the old town, surrounding the old town. Most of them appeared in the later 1990s, with the rapid development of tourism in Lijiang. The local authorities showed an ambition for the big scale development for the whole city. It is planned that by the year 2020, 300,000 people will live in Lijiang City with an annual population growth of 18.5%. (See Annex 2: Box 2)
Visual impact two is the improper reconstruction in the old town. There are two improper reconstruction projects going on in Lijiang. One is Nanmen Reconstruction Project, with a size of 12ha and investments worth 1.4 billion RMB, the other is Yu River Reconstruction Project, with a size of 20ha and investment worth 3 billion RMB (See Annex 2: Box 6, Box 7, Box 8). In these two projects, authentic historic buildings were demolished while fake architecture was built. Local people were moved away while shops for tourism were opened. Residents were forced to leave their homes without getting enough compensation. In the interviews, they complained that they did not want to leave their homes where their families lived for generations. 40
Visual impact three is the popularity of fake architecture. Fake architecture can be easily found in the old town. Historical sites, such as the Mu Palace are reconstructed in a fake style for attracting tourism (See Annex 2: Box 12). More reconstruction projects for historical sites are planned by the authorities to attract tourists. A large scale of tourism service buildings in the old town are newly built in a fake style, such as Nanmen Reconstruction Project, Yu River Bank Reconstruction Project (See Annex 2: Box 6, Box 7,Box 8). Among all the construction activities in the old town, only extremely few are restored authentically. (See 7.1.1, Box 7.2)
Visual impact four is the function change of physical settlement. Over 80% of the land surrounding the old town has been transformed or planned to transform it into tourism service. Inside the old town, land uses are changing. Places which were used by local residents are occupied by tourists. In interviews, some residents complained that they do not have open space for activities. The market square where they used to go is now the main site for tourists (See Annex 2: Box 11). The bridges where they used to meet are crowded by tourists. The market square is the heart of the old town. In ancient times, it was the place for people to trade. There are eight streets from different directions which end at the square. It is no doubt that the development of those streets was based on the trade function of the square. People from the surrounding area came from different directions to meet at the square and trade. Streets are radical from the beginning point------the square. As one of the important trade cities in the Ancient Tea Horse Caravan Route, Lijiang attracted traders from a large surrounding area, when horses were the only way of transportation, south to Dali, which is 300 kilometres away. There is a district named Xianwen which in a local dialect means where Dali people lived. From the photo taken by an American Researcher Joseph Rock in the 1920s showed a crowded market at that time. There are two bridges on the square. One bridge is called Selling Duck Eggs Bridge getting the name from the fact that people always traded duck eggs which are one of the favourite foods of the people of Lijiang. For a similar reason, the other is called Selling Chicken Noodle Bridge.
With time, modern shops took the place of an open market at the square. The square is not used for local people to trade anymore, but it is still the core of the old town, the 41
liveliest place for the local people and tourists. In the early morning when the first group of tourists have not yet arrived, the local people sell some breakfast for school children. At night, people will meet at the square and dance together, both local and foreign tourists. The square is also used for festivals by local people, for example, dancing competition. Carrying capacity Carrying capacity includes physical, economic, and cultural carrying capacities.
Physical carrying capacity is the maximum number of people who can use a site without an unacceptable alteration in the physical environment and without an unacceptable decline in the quality of experience gained by visitors (OReilly 1991, p. 302). Social carrying capacity can be defined objectively from the tourists point of view as the level of tolerance of the host population for the presence and behavior of tourists in the destination area; or subjectively as the degree of crowding users (tourists) are prepared to accept by others (other tourists). (OReilly 1991, p. 304) Economic carrying capacity can be described as the ability to absorb tourist functions without squeezing out desirable local activities. (OReilly 1991, p. 304)
The carrying capacity concept is widely accepted, but difficult to measure. There are some factors causing restrictions in its measurement. (OReilly 1991, p. 304)
The acceptable levels of crowding can differ from one society to another; Certain types of developments necessitate higher densities than others, even if the sizes of the developments are the same. Physical and environmental carrying capacities can be affected by management techniques.
According to the HCMC work report, the streets which tourists concentrate on are about 3.4km long, 15,320 m big. During the peak season, there are about 9,000 tourists in a day in the old town (excluding local residents and shop owners). That means that the average space per tourist is only 1.7m2. Definitely, 1.7m2 is small for a person to move around. There are obvious differences in the monthly distribution of tourists, but the gap is not as big as in other cities. That means tourists are crowded in Lijiang all the year round. There is a group of people who live in the old town for weeks, months, or even settle there for years. With the increasing number of tourists, the town could face a big problem of carrying capacity.
42
Figure 4.2: The monthly distribution of tourist numbers in year 2002

The m onth distribution of tourists in year 2002 Tourist Number (Thousand) 400 350 300 250 200 150 100 50 0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
371 305 235 194 254 324 281 321 293 310 259 230
Source: Authors summary. Tourist numbers from Lijiang Tourism Bureau.
The infrastructure in Lijiang is overloaded. Because of the rapid increase in the population of the old town, the infrastructure is seriously overloaded. Before the year 2003, there was no sewage system in the old town. Trash is collected twice a day by a trash truck which is inconvenient. Lots of wastes go into the river which leads to the pollution of the river. Pressure from infrastructure stimulates the construction of new infrastructure. In 2003, an underground sewage system was constructed.
4.3 Attitudes of different groups about tourism: residents, tourists and shop owners
Three groups with different backgrounds, age and gender talked about their opinions. Interview questions were very open. Interviewees in the same group gave similar answers (See Annex 4). All the three groups had similar answers about some issues, for instance, all of them mentioned the problem of commercialisation. The tourist group gave strong opinions about commercialization of the town. But they did not give any opinions about the impact on the environment and on the local community. Local residents and shop owners as long term inhabitants mentioned problems which are linked directly with their daily life such as the negative impact of tourism on the local community- gentrification. Residents Residents are happy with tourism because of economic profits although they are unhappy with large crowds. Most residents hope that tourism becomes more and 43
more prosperous. As locals, residents pointed out that wrong information was given to tourists by tour guides. Residents complained about commercialization and the increasing prices of commodities due to tourism. They also complained about the pollution of water which they have used for generations to wash and drink. But now they could not use it anymore even for laundry. They complained about the melting of the snow on the top of Yulong Snow Mountain which was much more beautiful than before. The relationship between tourists and residents is basically good. Local people accept them.
Since young people prefer to live in the new town, most Interviewed residents are middle-aged or old. They know the history of the town. The opinions they gave reflect the real problems of the old town, such as commercialization, environmental pollution, and gentrification. Tourists Tourists are satisfied with guest houses, the clean environment, good souvenirs, traditional performances and good services. They are not satisfied with interpretation, food and high chargers. Two among twenty said that tourism is overdeveloped. They complained about the unclear signs and map of the town. Tourist groups almost gave no opinions about the impact of tourism on the local community. They mentioned that the local people are hospitable.
Tourists only have a few days experience in the town. The fake architecture they see may be regarded as authentic. That is one of the reasons why fake architecture prospers in Lijiang. Some historical symbols are picked out to attract tourists. It is much more convenient than authentic constructions which require a lot of funds and professional knowledge which may be not attractive to tourists. For tourists, the town is beautiful and clean. But they do not know that the local government only cleans the river in tourism areas not residential ones. Outside of the tourism area waterways remain dirty with a lot of trash (See Annex 2: Box 13). Shop owners
44
Shop owners are happy with tourism because of economic profits. Shop owners also pointed out that wrong information was given by tour guides. They pointed out that tourism leads to environment pollution. They also highlighted the problems of commercialization and bad quality souvenirs. They were concerned about the way in which the local community was disturbed by tourism and little profited from tourism. Shop owners hope that tourism becomes more and more prosperous.
Shop owners came here for business; therefore, they aim at maximizing profit. At the same time, they have lived in the old town for some time (half a year to five years). Many of them were attracted by the beautiful place and peaceful life. They came for a certain ideal and some do not care about profit if they can meet the end. Shop owners opinions showed that they are partly localized. Just like local residents, they pointed out the wrong interpretation by tour guides which meant that they know the history of the old town. 4.4 Commercialisation in Lijiang 4.4.1 The concept of commodification and commercialisation Commodification is the process of changing history, authentic heritage to heritage products to satisfy contemporary consumptions (Ashworth 1994, p. 16).
History is the remembered record of the past: heritage is a contemporary commodity purposefully created to satisfy contemporary consumption. One becomes the other through a process of commodification (Ashworth 1994, p. 17)
Figure 4.3: Components of the heritage industry
VALUES
S E L E C T I O N
T A R G E T I N G
RESOURCES artefacts associations
INTERPRETATION packaging
PRODUCTS
CONSERVATION AGENCIES
USER INDUSTRIES
45
Resource: Ashworth 1994, p.17.
Commodification is part of process of transforming heritage to tourism attraction. Interpretation, not the resource, is the product. Heritage was created for different customers, viewed from the side of the customer; different products can be produced for different markets using the same raw materials by varying interpretation processes. Commercialisation as part of the tourism industry is the result of commodification.
4.2.2 Commercialisation in Lijiang
The commercialisation in Lijiang is significant. There are some facts. Appointed tourism shops and package tours. Some tourism shops are authorized as Appointed Tourism Shops by the Lijiang Tourism Bureau with uniformed signboards at the entrance. That means that in the package tours, these shops, just like tourism sites, are visited by tourists taken by tour guides. Shopping in these shops is part of a trip and written in the trip program.
In this process tour guides can get some commission from every shop in proportion to the total money spent in shops by the tourist group. In fact, this money is the main source of income for tour guides. This is the interview from one tour guide:
Every month I have fixed salary: 300RMB. That is even not enough for the food and accommodation. Apart from that, I can get 20RMB from each group I guide. My income does not come from these tours, but from the commissions given by shop owners. I take tourists to the appointed tourism shops; tell them that commodities in those shops are good. They buy things there. Then the shop owners give me 5%-10% of the money they spend in the shop.
A big number of tourism shops and entrepreneurs. In the old town, there are 1,647 entrepreneurs. Huge profits from tourism attract many outsiders for business. In 2002, the number of outsiders reached 4,023 (the HCMC work report), almost 1/3 of the population of the local people. Only 390 (about ) shop owners are local people. The old town has changed from a mixed function as a residential, centre for cultural communication, business area, place for relaxing and visiting to just a business and tourism district. The historic town has been transformed to a tourism
46
commercial area. The authenticity and the residential atmosphere have been lost. Outsiders bring potential problems such as security, fire and sanitary problems. Low quality of shops and souvenirs. Shops are very similar and the souvenirs lack variety. During interviews carried out in 2004, commercialization was mentioned by 27 among the 60 people, which was the biggest number of negative opinions. All three interviewee groups mentioned too much commerce (13 people) and the bad quality of souvenirs (10 people) (See Annex 4). In a questionnaire survey made in 2002, three people mentioned commercialization when answering open questions (See Annex 8).
4.5 Government intervention on tourism development
Commercialisation is regarded as a significant problem by tourists, residents, local authorities and shop owners. The HCMC issued a policy in 2003 that all the shops have to get the authorization of Identification of operating shops from the HCMC. In this way, they try to control the shops in the old town in numbers, ornament style, commodity types, and employees. The following are the regulations about tourism shop control by the HCMC. Number control No more new shops are allowed to open. Control and cut down the number of the existing shops, mostly, modern shops. Commodity type control One shop is allowed to have one or two types of commodities. For example, one shop can not sell food, Jewry and clothes together. In this way, the shops may be more specialized. At different streets different commodities are promoted. For example, one street is for handicraft souvenirs, one for ethnic cultural products, and
47
one for handmade copper products. Modern commodities such as clothes chain shops are not allowed to be sold in the old town. Remove of modern shops Modern shops mean shops with fashion clothes, Jewellery shops, music CD shops, internet bars and massage shops. Located in the tourism area, they are regarded not to be harmonious with the old town and were forced to move to the new town, even if they have good business. Thus, all the shops in the tourism area must sell souvenirs, or handicrafts, or something traditional. In a nutshell, their businesses should be linked to tourism. It is not allowed to have groceries in the main tourist routes. Job opportunities for the local people In every shop, there should be local people employed. If the employees are less than five, then at least there should be one local person. If more than five, local people should take the places of more than 70% employees. Special shops- rent free for local cultural celebrities Some shops with good positions are provided to the local cultural celebrities for free by the government. It must be used by them for promotion of local culture. Ornament style control The signboard at every shop must be approved by the HCMC to control the size, content, material and style. All the lamps, lanterns, signs, walls and other small ornaments inside the shops should be approved too. Modern materials are not allowed to be used in the shops. Ethnic costumes It is ruled that all the employees in the tourism area should wear traditional ethnic costumes. 48
Other restrictions Solar machine sets are not allowed to be used in the old town. Sunshine shades and rain shades made from modern materials are not allowed to use.
4.6 Critiques and conclusions
4.6.1 Discussion about commercialization
Lijiang was prosperous because of an old trade route south to Dali, north to Tibet and India. In this route, commodities from the neighbouring places were traded along all the towns in the route. Horses were the main means of transport and tea was the main commodity. Therefore, this route is called the Ancient Tea Horse Caravan Route. In history, the market square in old town of Lijiang was one of the biggest markets in the Route. Qiyi Street was the commercial street, full of shops. Now previous shops are not in the main route of most tourists. Hence they are abandoned and quiet.
Figure 4.4 This type of architecture was the shop in the Ancient Tea Caravan Route. Now they are abandoned and quiet. Photo by author.
The old town boomed in history because of commerce. It is argued by a small group of
people that the commerce now in the town is acceptable. Shops today have their reason to exist. I think it is normal that there are so many commercial activities in the old town, one traveller said. But most travellers, residents, officers, professionals, apart from entrepreneurs complained about commerce.
The problem is not the number of shops, but the quality of the shops. Souvenirs are the same, boring and without any cultural identity. One foreign traveller said he could not understand why the menus in different bars and restaurants are the same.
4.6.2 Critiques about policy intervention
49
Actions taken by the HCMC showed their concern about commercialization of the old town. There are some critiques about their actions by different stakeholders, especially shop owners who were forced to change ornaments and commodities from time to time.
Table 4.3: Critiques about shop control by the HCMC

Attitude by author approved Actions Reason
shop number control Reduce shops Job opportunities for the local people Protect local communities special shops rent free for cultural celebrities Promote traditional local culture disapproved shop commodity type control Theme park ethnic costume Theme park Ornament control Uniformities and standardization Source: Authors summary, based on interviews and questionnaire surveys.
Shop commodity type control transforms the old town to a theme park. Only tourism-related commodities are allowed to be sold in the tourism area. Modern shops such as internet bars are not allowed to be operated in the old town because they are regarded as interference to the atmosphere of the old town. Tourists have to go to the new town to use the internet. Other commodities such as music CDs and modern clothes should also be allowed to be sold. Ethnic costume wearing rule transforms the old town to a theme park. All the employees in the tourism area must wear traditional ethnic costumes. Ornament control makes shops standard and uniformed. For instance, almost all the shops should hang on the same kind of lamp which is thought to be traditional and harmonious with the old town (See Annex 2: Box 13). This may lead to standardisation and loss of attraction. All the entrances and window designs of the shops should be approved by the HCMC. Being a political organisation, the HCMC committee does not have any professionals in design or heritage conservation. The judgement by the HCMC may be not true. In fact, many changed entrances got bad comments from local community and visitors. Some artistic designs by creative shop owners were forcefully abolished. This also caused conflicts between shop owners and the local authorities. The idea of changing the ornaments in the shops by the authorities means financial and time input by the shop owners and the result may not be positive. 50
4.6.3 Identification of the stage of present situation in tourism development
According to Butler (p. 31), the life cycle of tourism is comprised of the following stages: an involvement stage, an exploration stage, a development stage, a consolidation stage, a stagnation stage and either a decline stage or rejuvenation stage. If we identify the tourism stage is the life cycle of Lijiang, the stage now is between consolidation and stagnation, almost in stagnation. Although there was a little decline in tourist numbers in 2003 because of the out break of SARS, the trend of tourist numbers is still going up.
Figure 4.5: The life cycle of tourism development
The approximate position of Lijiang
Source: Butler 1980, p.31, edited by author.
Will tourist numbers decline or will there be a rejuvenation? The World Tourism Organization has predicted that by the year 2020 China will be the number one destination in the world, surpassing even the United States. Local authorities in Lijiang are optimistic about tourism development. This is the anticipation about tourist numbers in Lijiang. Table 4.4: Anticipated tourist numbers by Lijiang Tourism Bureau 51
2005 Tourist number 4.0 million Source: Lijiang Tourism Bureau, 2004
2010 5.6 million
2020 10.0 million
2050 16.0 million
2100 21.0 million
Where Lijiang will go could not be confirmed, but the present heritage management efforts can guide Lijiang to develop in a right direction.
4.6.4 Summary of findings about tourism
The tourism industry in Lijiang has been prosperous since the year 1994. Policy support promoted tourism development. Infrastructure construction for the tourism industry helped greatly to attract tourism. Cultural events promoted further tourism development. In 1997 shortly after earthquake, for the first time tourist numbers were over one million. In 2003, 3.3 million tourists visited the 1.4 km old town. During the peak season, day visitor number reached about 10,000. The population of the local people is only 70,000 and the old town has only 14,000 inhabitants.
Tourism has brought both positive and negative impacts to the old town. Local people get job opportunities from tourism, but commodity prices also rise up because of high purchasing power of tourists. Local people began to be aware of the international value of their lovely home town. School children must attend the traditional culture classes. But residents in the old town are moving out. The tourism area and residential area are separated.
Tourists also bring pollution and overload the infrastructure. For a small town of 1.4 km, 3.3 million is a big number. Tourists bring profits to entrepreneurs. Developers come to look for their cash from the tourism industry. The last piece of farm land in the old town is going to disappear due to the invasion of modern construction. The built area of the city is expanding at an unbelievable speed. New construction is going on around the old town. The tourism boom in the old town promotes the ambition to develop the new town. Improper reconstruction in the old town destroyed the historic buildings. Fake architecture is popular in Lijiang city. Tourist hotels, restaurants, even important tourist sites are built in a fake style. Fake styles are thought to be harmonious with the old town by a group of people: decision makers and shop owners. The old town has become a paradise for developers and tourists 52
and a lost home for local people. With the crowded tourists, local people could not trade at the market square and rest at the bridges any more. Now tourists are using the places what they used to. Local people always avoid moving where tourists go.
Three interviewee groups: tourists, local residents, and shop owner showed their opinions about tourism. The biggest problem mentioned by three groups is commercialization; the second is the impact of tourism on the environment and the impact of tourism on the local community.
Commercialization is unavoidable in the heritage industry. The big numbers of shops and local quality souvenirs are significant problems in the tourism industry in Lijiang. But a small group of people do not agree that commercialization is problem. Some measures were taken to reduce the commercial atmosphere. But those actions are also questionable.
53
Chapter 5: The current situation of tourism and conservation in Lijiang

5.1 Review of the past
Since 1994, the old town of Lijiang has undergone major changes in the built environment, society, culture and economics. The beauty of the town attracted its visitors. Local people either choose to move away or still keep their own life style. Mass tourism started to be developed in 1994 as a result of policy promotion by the provincial government and the local government. Conservation efforts were put under pressure of from tourism. Inscription to the world heritage list stimulated both tourism and conservation. The impact on tourism became more and more significant. The old town has been extremely commercialized. The town has become a paradise for investors and a lost home for local inhabitants. The deterioration of heritage is prevalent.
5.2 The relationship between tourism and conservation in Lijiang
In the year 1994, policy promotion stimulated mass tourism development; at the same time, conservation also began to be considered seriously by the authorities. Conservation was taken under the pressure of tourism almost simultaneously with mass tourism development. 54
Table 5.1: Interview opinions about interaction of tourism and conservation

Positive Tourism on conservation Prevent the destruction of local culture; A way of financial support Tourism helps local people to understand the value of heritage Tourists damage heritage, not good for conservation Conservation on tourism Help to generate tourism No opinion Conservation only works for tourism No opinion
Negative
Heritage was destroyed because of tourism Source: Authors summary based on interviews
If we analyze further, the relationship between tourism and conservation, we can find both positive and negative impacts.
5.2.1 The impacts of tourism on conservation in Lijiang
Tourism has both positive and negative impacts on conservation. Positive impacts can be summarized as follows: Tourism contributes to the understanding the value of heritage. Tourism motivates Revitalisation of the built environment. Tourism brings pressure on the built environment, especially the infrastructure. At the same time, it promotes the construction of new infrastructure which is advantageous for conservation. The sewage system in the old town was constructed in 2003, under the pressure of mass tourism. Revitalisation of the built environment also includes re-use of disused buildings, restoration and preservation of historic buildings, restoration of derelict buildings. In the old town of Lijiang, outside entrepreneurs rent the houses and use them as shops or for residential use. They input finance for restoration Tourism contributes to financial support for conservation either directly or indirectly. The Ancient Town Conservation Fee was taken directly from tourists and used for heritage conservation. Tourism brings income to the local government and the local residents. They could possibly have more funds used for conservation activities. In this way, tourism contributes to finance indirectly. instead of original house owners. heritage conservation.
55
The benefit from tourism is limited. Negative impacts of tourism on conservation include pressure to the town, destruction caused by tourism and loss of authenticity. (See 4.2.3) Erosion vandalism. Tourists can cause excessive wear and tear because of their feet and vehicles, which increases the cost of conservation. The touch of thousands of hands and human breath also cause damage to heritage which is difficult to Historic fabric change. Historic fabric changes include changes in character of the built area through urban expansion or redevelopment (big scale construction projects around the old town of Lijiang), changes to residential, retail or industrial land uses (in the tourism area in Lijiang, almost all private houses have been changed to shops), changes in the urban fabric (roads, pavements, street furniture), contrasts between urban areas developed for the tourism population and original Pressure of infrastructure: Overloading infrastructure. host population. recover.
Visual impact: Growth of the built environment, new architectural styles (fake Pollution: air pollution and water pollution from tourists. 5.2.2 Conservation as a way of generating tourism architecture), people and their belongings, beautification.
The integration of conservation with tourism has been such that tourism is no longer an outcome of conservation but conservation is increasingly a product of tourism. Hurried attempts to re-create or even invent history: In Lijiang, historic sites were reconstructed according to imagination, such as Mus Palace. Fake architecture is Facadism and pastiche streetscape recreation. very popular in the old town.
Over-sanitisation of the town: For example, in Lijiang the HCMC put fishes in the rivers, but they did not provide a natural environment for them to live in. The bottom of the river is covered by stones, not sand and grass. The local authorities think that fish can make the town more beautiful.
56
The theme park phenomena. In the old town different measures were taken in tourism area and residential area. Waterways in the tourism areas are very clean with fishes while those in residential areas are full of trash and lack maintenance. Public toilets in tourism areas are constructed with four-star facilities while in residential areas they are in poor conditions.
5.3 The UNESO workshop: Lijiang Model concerning conservation and tourism development (2001)
5.3.1 History and background of the workshop
In 1999, UNESCO planned to implement a project called Cultural Heritage Management and Tourism: Models for Cooperation among Stakeholders at eight world heritage sites in Asia and Pacific region. Lijiang was selected as one of the case studies. The purpose of the project was to investigate and assess the management and conservation measures taken at world heritage sites; to study the negative impacts which are brought by the rapid development of tourism and to establish a cooperation model among all the stakeholders.
In April 2000, at the Bhaktapur workshop (organized by UNESCO in Nepal), the report Lijiang Ancient Town Conservation and Tourism Development was presented by the Lijiang government. Also at that workshop, the idea of hosting the Fifth Annual Workshop of Culture Heritage Management and Tourism in Lijiang was initiated.
In October 2001, Lijiang hosted the Fifth Annual UNESCO Workshop of Culture Heritage Management and Tourism where the Lijiang Model was developed.
5.3.2 The output of the workshop: the Conservation Action Plan for the old town of Lijiang (LCAP)
At the workshop, the Lijiang Model was developed. Based on the Lijiang Model, the Lijiang Conservation Action Plan (LCAP) for the old town of Lijiang was formulated.
57
In the years that have followed, some plans have been implemented; some are in the process of implementation; and other plans were changed. The following are the main plans proposed in the LCAP. Collecting fees- The Ancient Town Conservation Fee. It was a complicated process to develop the mechanism of fee collection due to disagreements among different groups: the local government, the provincial government, tourists and tour operators. However it finally worked out successfully. Establishment of the Heritage Conservation and Management Committee in Lijiang. Conservation activities involved many issues such as water pollution, commerce, tourism and security which relate to different authorities. When there was a problem, different departments considered decisions from their own point of view and it was hard to coordinate them. It was necessary to develop an authority to coordinate all activities in the old town.
Table 5.2: The development of a mechanism of collecting the Ancient Town Conservation Fee
Time 09.1999 Important stage Discussion about fee collection plan among Lijiang local authorities Municipal level The Lijiang local government Decisions 5~10 RMB per tourist per day; Tourism operators and entrepreneurs charged 1%2% of their profit 20 RMB per tourist per day
05.2000
20 RMB per tourist per day collected by hotels and travel agencies Feedback. Difficulties are encountered. Fee collectors worried about that additional fee for tourists would cause a decrease in tourism. In that case, the action may have a negative impact on their economic profit. Tourists also complained about the fee. Fee collection stopped. Further discussions The Lijiang local 20 RMB per tourist, no 11.2000 government matter how long they stay The beginning of fee collection The Lijiang local 20 RMB per tourist collected 01.2001 by hotels and travel government agencies Feedback. It is widely supported by tourists, hotels, travel agencies The new mechanism for fee The Lijiang local 40 RMB per tourist collected collection government by the HCMC on the way to 2002 the Jade Dragon Snow Mountain Source: Authors summary based on the HCMC work report 07.2000
Fee collections approved by provincial authorities, explained as a kind of administrative tax The beginning of fee collection
Yunnan Provincial Government The Lijiang local government
58
In June 2000, the Lijiang County Government established a Heritage Conservation and Management Committee of Lijiang. The vice governor of Lijiang was assigned to be the committee leader. Under the leadership of the committee, an office was established which deals with practical conservation activities. Conservation work began to be carried out systematically and professionally since the establishment of the committee. Investigation and study of other World Heritage Sites in China and foreign countries. The Lijiang County Government pays attention to learning experiences from other heritage sites or historical cities in China. Some people were sent abroad to study and investigate about heritage conservation. Development of Regulations on Lijiang Ancient Town Conservation and Management. In June 1994 the regulations had been initiated, however they were not concrete and practical. It is necessary to develop an updated one. There have been several discussions about the new regulations; however, up to now no results Resolving the problem of timber supply. In 1998, the policy Natural Forestry Conservation was authorized, which means it is not allowed to cut trees any more. Timber is difficult to get for restoration of the old timber houses in the old town. The local government then tried to get timber which has already been cut. Another solution is to buy timber from foreign countries such as Burma. Revitalizing the Market Square in the Lijiang Ancient Town. The market square in the old town was previously for the local people and businessmen to trade in commodities. The market was moved and the place was given away to tourists. The local residents have to go far to buy daily commodities. It has not been implemented. Preservation and revitalization of traditional culture. The plan includes the promotion of the traditional dress, promotion of Naxi language, revitalization of the street washing tradition, revitalization of folk dancing, revitalization of lantern floating customs and formulation of Dongba Culture Preservation Regulations. It has been partly implemented. 59 have been approved.
Investigation of out-migration of the local people. Since 1997, with the rapid development of tourism, out-migration of the local residents began. Many of them rented their houses to entrepreneurs. Some of the local people left the old town because of inconveniences in their daily lives in the old town. This plan has not been implemented.
5.3.3 Discussion and comments about the output of the UNESCO workshop
Although there are some action plans which have not been implemented, such as the revitalization of the market square and an investigation of out-migration of the local people, the UNESCO workshop was significant for later conservation activities in Lijiang. The mechanism of charging conservation fees is not only significant in Lijiang but also in China because it is the first town in China where this kind of fee is charged. In this way, the local government in Lijiang has raised 108.66 million RMB. All of it Active participation of the local government in the workshop improved the The HCMC is the first specialized conservation office in China. Its foundation symbolized a new progress of heritage conservation in China. (See 3.2.2) awareness of conservation among local stakeholders. is used for conservation.
The workshop promoted the conservation activities in Lijiang. The Lijiang Model (See Annex 9) as a theory for heritage management is useful for the old town of Lijiang and other historic cities in Asia.
5.4 The Master Conservation Plan (MCP) of the old town of Lijiang (2003) 5.4.1 Background of the development of the Master Conservation Plan
After the foundation of the HCMC in the year 2002, the first project conducted was the development of the MCP. On the one side, the HCMC realized the importance of the conservation plan; on the other side, the donor GHF pointed out that poor planning decisions was a big problem (See 3.3.1) and required that part of the funds 60
should be used for planning. The HCMC invited Shanghai Tongji Urban Planning and Research Institute for the project. By 2004, the MCP had been finished, but not yet authorized by the central and provincial government. It has been partly implemented. The projects conducted by the HCMC were mainly based on the MCP.
5.4.2 Main points of the MCP
The main planning principles of the MCP are Positive conservation: Instead of taking heritage as a monument in a museum, one objective of conservation is to make the old town habitable. Conservation should motivate a wide public participation among stakeholders of the old town, especially the local community. Integrated conservation: Heritage conservation should integrate physical, social and cultural development. Conservation should be a part of urban development policies. Conservation as a development strategy: Conservation is a way of revitalizing the old town. The proper use of heritage can contribute to and promote the overall development of the city.
The main contents of the MCP include: Border identification for preservation of the natural environment Land use regulation Plan for distribution of commercial sites Plan for preservation of the traditional urban form Height control and vistas protection Preservation and renovation of traditional streets and lanes Preservation and rehabilitation of existing buildings Guidelines for new construction Preservation and rehabilitation of environment elements
5.4.3 The implementation of the MCP
61
The MCP has not yet been authorized officially by the provincial government, but it was extensively agreed upon by the local authorities. The conservation activities mainly followed the MCP. The projects which have been finished are: the infrastructure construction project and the historic building restoration project. The projects going on are: the military base reconstruction project, the new entrance for the old town project and the lion mountain reconstruction project.
Land use changes since the year 2003 basically follow the MCP. But the MCP is focused on land use control and there is no detailed construction plan to guide practical building construction or restoration. Although there are some guiding principles dealing with building construction and restoration in the MCP, these guidelines are usually ignored when constructing because there are other factors more influential. For instance, in the Heritage Forum Project, the building density is much higher than it was supposed to be due to economic benefits and other considerations by developers. 5.4.4 Assessment of the MCP The progress of the conservation plan in China This conservation plan was a big process in China. It is the first time that the notion Integrated Conservation was approved in the master conservation plan in China. It was also the first plan which included restoration guidelines for historic buildings. Almost all the master conservation plans in China concentrate on the development of the built environment, lack of consideration for the economic and social environment and also lack of guidelines and principles for implementation. In fact, almost no conservation plans in China have been really implemented. Even when plans were implemented, they are partly or even totally changed. More consideration for local communities Based on the concept of integrated conservation, the MCP shows much more consideration for the local communities. The out-migration of the local residents in the old town drew attention of planners and decision makers. Several community
62
centres and facilities were planned. Guidelines were developed to rehabilitate residents. Passive compromises with improper development Some improper development projects have been approved by the local government and coordinated by developers before the MCP was developed. As professionals, the planning team can only give opinions, but could not have power to change or make decisions. Improper land use was still included in the MCP. For example, the piece of farm land in the south of the old town is suggested to be kept by professionals. It provides a micro natural environment for the old town. It is part of life of the local people. And it is also part of heritage. Being close to the centre of the old town, it has a potential for commercial profits. In the course of planning by developers, it will develop a resort place.
5.5 Summary of findings about heritage management in Lijiang
5.5.1 Brief history of development before and after 1994
Before the year 1994, the value of heritage was not widely recognised. Conservation was not an important policy. In 1951 significant decisions saved the old town from the miserable fate of demolishment by modern constructions as many other historic towns in China.
In the year 1994, the great change began. The value of heritage was realized by the authorities. The tourism industry in Lijiang was approved in Southwest Yunnan Tourism Planning Conference. Infrastructure construction followed the policy as an important action to promote tourism. In the same year, application for enlistment as a World Heritage Site began. It was the turning point for the old town of Lijiang. The old town has been greatly changed since then.
Package tourists increased more than individuals and contributed more to tourism income. Conservation projects about infrastructure improvement and house 63
restoration were conducted by the local government. Conservation policies and regulations were issued. The Master Conservation Plan was developed. Efforts began turning to the control of over-developed commercial activities. The following are the important events:
In 1996, an earthquake made Lijiang well-known because the flexibility of wooden structures saved the old town from demolishment by the disaster. Successful reconstruction brought a good reputation to the old town. In the following year the tourist numbers were over 1 million for the first time.
In 1999, Lijiang was the sub-host of World Expo together with Kunming and this stimulated tourism development in Lijiang.
In 2001, the UNESCO workshop promoted conservation policies and actions in the old town. As a consequence, the HCMC was founded as an important organisation. Important actions were approved in the workshop including a mechanism of charging conservation fees, house restoration and control of commerce.
5.5.2 Stakeholders dealing with heritage conservation Governments The central government does not have a strong influence in the town. The provincial government issued many policies dealing with the development of the old town. Since the 1990s, the tourism industry has been taken as the main industry in the whole Yunnan Province. The old town of Lijiang is one of the most essential tourism sites. The local government played an important role in implementing policies. Most projects were conducted by the local government. Most officers in the town government are local people. They grew up in the old town and have strong feeling towards the town. They have a strong will to protect the old town. The Lijiang city government is under the direction of the central government and the provincial government. They have made a lot of efforts in infrastructure construction and issued many important conservation policies. They promoted the old town of Lijiang to the
64
outside world. They have a wide cooperation with national and international organisations dealing with heritage management. Local residents Before 1994, local people lived their peaceful life by farming, without much disturbance from outside. Since the tourism boom, a large percentage of local residents took part in the tourism industry in different ways. Some local residents rent their houses to entrepreneurs for business and with the rent they collect, they live in the new town. In the tourism area, almost all the houses are in this category. Some local people do businesses by themselves. Some are employed in the shops run by outsiders. Because of out-migration, only a small number of local people still live in the old town and they are old-aged. According to interviews, they are happy with tourism development.
Visitors The first visitors to the old town were artists and foreigners. Being in a small number, they did not have a lot of impact on the local society. Mass tourism boom since the year 1994 brought a large number of both package and individual tourists, who contribute to tourism economics. Real estate developers They come to Lijiang to get profits from heritage tourism. They regard heritage as a resource for economic profits. They normally cooperate closely with the government to get permission or bonus for real estate projects. Because of the consideration for maximum profits, the authenticity of heritage and the interests of the local community are less considered, or partly damaged in most cases. Compared to shop owners, they are not in a large number, but their projects have bigger impacts on the old town. Shop owners
65
There are different types of shop owners.
Type one: Those who seek a romantic life style in Lijiang. They are attracted by the beauty of the town and reside in the old town. Life in the town is more like holidays than business. Most of this group of people come from big cities. Most of the shops they run are cafes and bars. They do not care much about business if it can make ends meet. For them, it is a romantic life style to stay in Lijiang. They were the first group of shop owners to come to Lijiang. Many have left Lijiang after mass tourism broke the peace and romance of the old town.
Type two: Artists. They run workshops in the old town and sell art works. Similar to type one, they are looking for a life style in Lijiang. They are in a small numbers, but quite remarkable in the old town.
Type three: Professional business men in tourism. Attracted by the large number of tourists in Lijiang, they come here for economic profits. Most of them come from another tourism city. When they come, they also bring souvenirs which are not part of local specialties. They are responsible for the comment that there are shortages in the variety of souvenirs in shops. They sell pearls and jewels some of which are fake. Because of the intense competition, their businesses are not very good.
Type four: Local residents. They are the only group who do not need to pay rent. They sell local food or local souvenirs. They also face intense competition in business.
Some of the shop owners from outside do not care about the environment of the town. For example, they throw garbage in the river at night. Some shop owners are in conflict with the local residents. Others National professionals: They are often invited to come to Lijiang for professional opinions. But sometimes their opinions are not respected by the local authorities. There have been many arguments between professionals and the local authorities. 66
International professionals: The inscription into World Heritage Site stimulated the local authorities for conservation and also brought international professionals. The UNESCO workshop in 2001 was significant in guiding heritage management in Lijiang. GHF provided Lijiang with financial support. Interactions between the actors From the interviews, the relationships between different stakeholders and their attitude towards heritage can be summarized as follows (Also see Annex 1: F1.2):
Figure 5.1: The interaction between tourists, residents, shop owners, government and heritage
Tourists
Residents
Heritage
Shop owners
Government
Table 5.3: The interaction between tourists, residents, shop owners, government and heritage
Heritage Tourists Residents Shop owners Government
Tourists vs. Heritage Tourists Basically, satisfied with heritage, but complaining about the loss of authenticity and the
Residents vs. Tourists Resident open to tourists, but complaining about the loss of identity, crowds,
Shop Owners vs. Tourists Expecting more and more tourists
Government vs. Tourists Government promotes tourism and tries to attract tourists.
67
theme park phenomena
disturbance, and environmental pollution.
Tourists vs. Residents
Residents vs. Heritage
Shop Owners vs. Residents Shop owners mentioned the loss of identity and tradition by tourism. Too much commerce and bad quality of souvenirs. Shop owners vs. heritage They highlighted the loss of authenticity.
Government vs. Residents Government tries to attract the local residents to live in the old town.
Residents
Most tourists are polite to residents. But some not.
They highlighted the loss of identity and tradition
Tourists vs. shop owners Shop owners Tourists complain about commercialization
Residents vs. shop owners
Government vs. shop owners Government intervenes in the market and tries to regulate commercial activities.
Residents are open to shop owners.
Tourists vs. government Tourists are satisfied with the environment in the old town.
Residents vs. government Residents get subsidies and permission from the government for restoration.
Shop owners vs. government Some shop owners complained about governments action.
Government vs. heritage Government conserves heritage and promotes tourism
Government
Source: Authors summary based on interviews
Table 5.4 Structure of the above table

Heritage Tourists Residents Shop owners Government
Tourists
Residents
Shop owners
Government
The cooperation between stakeholders has not been built yet it is two years after the Lijiang Model was formulated. Since finance influences the decision making process, the local authorities have cooperation with the investors. Some improper
68
development projects were planned by investors and authorized by the local government.
The local authorities have plans for some development projects but in the situation of shortage of finances. Developers can provide funds and seek for the best benefits from the market. For them, heritage is a resource which can bring profits. They do not have the ownership of heritage. The local government has the right to rent the land to investors for projects. Developers invest and construct according to their taste aiming at attracting customers (visitors). Their short-term interests are satisfied in the project. They are the real beneficiaries in city renewal projects.
The government is happy to authorize them to construct. The local authorities may have economic profits from the projects. They may also have political benefits. But sometimes, they may not get anything because of unpredicted circumstances. If the local government could not control the quality of development, the value of heritage would be damaged. The responsibilities of the government should be aimed at regulating the rules for development and interfering in the market to keep a balance between the interests of different groups. In fact, these improper projects are out of control due to corruption or unawareness by the decision-makers. The interests of residents had been damaged.
5.6 Problem identification and conclusions
In a nutshell, heritage management in Lijiang is at a transformation stage and at cross-roads to either success or failure. Policy intervention brings both positive and negative impacts and negative impacts began to be realized. Public participation has not yet been developed. The interests of the local communities begin to be paid attention to. The attention for them was initiated by external stakeholders, the GHF, conservation institutes, shop owners and some tourists, instead of the local authorities.
In Lijiang, great efforts have been made for heritage conservation while improper construction is going on at the same time. There is coexistence between positive development and constraints in Lijiang. 69
Table 5.5: Assessment of conservation efforts

Effective conservation efforts Improper development efforts Infrastructure construction in the old Improper real estate development: (Nanmen town Reconstruction Project, Yu River Reconstruction Project) Awareness of conservation has Theme park actions improved among authorities Source: Authors summary based on interviews
Improper real estate development is a result of developers persuading government. Developers aim at profit returns and provide fund for projects. Finance has a big influence in the decision making process. There may be corruption in the process. When an improper land development project is authorized, the damage to the built environment begins.
Theme park actions by the local authorities can be explained by the lack of professional knowledge as to how to keep the authenticity of the place and attract tourists. Some traditional symbols are taken to attract tourists. A big number of fake architecture was built. In fact, they are not what tourists want to see.
As it has been discussed in Chapter 3, the core problem which tourism brings is Some features of the physical heritage are selected for re-creation or preservation. Some historical incidents are emphasized, others forgotten. (Larkham 1994, p. 269). While conservation does not allow Some historical incidents are emphasized, others forgotten, all historic information should been emphasized even if it does not have value in as far as tourism is concerned.
In heritage management in Lijiang, seven problems are identified and suggestions are given to strengthen conservation and at the same time to improve the state of tourism.
5.6.1 The problem of authenticity: Lack of awareness about the value of heritage
The awareness about heritage protection in Lijiang has been aroused at different levels and among different stakeholders since the old town was inscribed as a world heritage site. Enormous efforts have been made in conservation. The beginning of conservation activities brings in the question of how to conserve. In fact, to some 70
extent, the real damage to heritage began as soon as conservation work had begun. Authentic architecture was ignored, while fake architecture was built. In the tourism industry, symbols were taken by tour operators or shop owners to attract tourists, while the authenticity of local culture was forgotten. Some local people complained that the unique local pictograph was written by shop owners on T-shirts to sell them as souvenirs but they were written in a totally wrong way. The wrong pictograph carried a wrong meaning. For the local people who know the right meaning, they feel sad about the phenomenon when they see that their traditional culture is being misused.
Since heritage is scarce and irreplaceable, any small inappropriate action may have extensive effects leading to loss of historic information. A good solution for this problem is to strengthen public education about the value of heritage.
Public education includes the education of authenticity for the site managers and the local residents and also includes the education about the value of heritage for visitors. These are the recommended projects to strengthen public education: Restoration techniques presentation. Successful examples of restoration are presented to guide the restoration of houses for anyone who would be willing to restore his or her house. An exhibition center could be developed for the presentation. A traditional courtyard house in the residential area could be used for the exhibition center. Bad examples would also be presented. Professionals from universities shall be invited as consultants. It shall be Development of a heritage research centre. A research centre dealing with heritage conservation in Lijiang shall be developed. Information about the old town shall be collected and shared for academic use, practical purposes and research and so on. Through the research center, researchers in the same field could communicate. The center shall be co-organized by the HCMC and The development of a traditional handicraft workshop. The place could be in a traditional courtyard house in an area where there is tourism. The workshop organizers could be the local people, or amateurs, or artists who are interested 71 Lijiang Culture Bureau. It takes about one year to organize. organized by the HCMC. It is about one year to organize this exhibition.
in local handicrafts, if they are qualified. It can be used to educate both the local people and tourists. It is also for the clarification of real handicraft products from fake ones in numerous shops. It shall be organized by the HCMC. It takes about 3-6 months to organize.
In Lijiang, there are also some good examples of house restoration which show the full respect of authenticity by the restorers (See Box 5.2). But these are rare cases done by artists or professionals. Therefore, it is very important and necessary to present these good examples to the public.
Decision makers do not have sufficient research and experience about the conservation, restoration, reconstruction of historic buildings and historic districts. Some historic buildings which were improperly restored lost their authenticity. They were partly damaged when people began to pay attention to them. A big number of fake architecture also appeared. In China, in almost every city, you can find fake architecture and fake streets. For example, regarding the control of traditional styles in the old town by the HCMC, it is difficult for the decision makers to make a judgement, which is harmonious with the traditions.
5.6.2 Planning problems: Lack of a management plan for the old town
Traditional conservation planning is still at a level of physical restoration. It is not feasible and it lacks proper guidelines for implementation. The master conservation plan has tried to provide guidelines and detailed restoration maps, but it can not control all the conservation activities in the old town. One reason is that it is impossible to implement the whole plan. Some land uses and building styles may be different before and after implementing the plan. Even if the plan has been approved by the national government, in reality, construction plans may be changed anytime by decision makers, governors or investors, according to their own interests, which is a common phenomenon in China. The present master conservation plan focused on land control without dealing with detailed construction projects and management instructions. In fact, the present land use follows the Plan, but the styles and sizes of the buildings are out of control.
72
A management plan is different from a conservation plan because it usually would cover other aspects of the management of the place (Pearson and Sullivan 1995, p. 187). For instance, a management plan includes the availability of funding, visitor management, marketing and human resources. In a management plan, there is a clear responsibility to take other real constraints and considerations into account and to balance the heritage value of a place with societys other needs (Pearson and Sullivan 1995, p. 189). Conservation plans are most relevant in the early stages of the recognition of a heritage site. A conservation plan is a section of a management plan.
The Master Conservation Plan by Tongji University focuses on the restoration, reconstruction and adaptation, but also involves issues such as tourism route planning and resident community centre planning. It can be said that it is the combination of the management plan and conservation plan. For historic towns in China, there has never a management plan developed. A management plan could not solve all the problems emerging in the old town of Lijiang at once, but it could provide a possible framework and technical support for the overall development of the old town. The Master Conservation Plan by Tongji University was basically respected and it has been helping heritage managers to make decisions. But compared to management planning, it still does not involve the overall considerations. According to Pearson and Sullivan, there are four sections in management plans: maintenance strategies, conservation strategies, visitor management strategies and other strategies. Among these four, only conservation strategies were developed in the Master Conservation Plan of the Lijiang Old Town.
5.6.3 Maintenance problem: Lack of preventive maintenance for historic fabric
Preventive maintenance can easily be ignored by site managers. For historic buildings in the old town which are not used for commerce, they are either partly changed to a modern style or in a rather bad shape. These are the possible reasons why historic buildings lack maintenance: unclear ownership of houses; owners lacking finance for maintenance; owners lacking knowledge about maintenance and lack of awareness. Among these reasons, unclear ownership of the houses is the main one. Due to ownership reforms during the 1950s, the inhabitants in the houses 73
did not have a right of ownership. The inhabitants did not have the motivation to take care of the property. Most of the historic houses are in bad conditions. They are either restored for commercial purposes (in most cases, authenticity is lost after restoration) or on a blink of collapse.
Feilden and Jokilehto (1998, p. 43) have pointed out the importance of preventive maintenance:
A good maintenance strategy can prevent a great deal of damage and decay, and thus save money. Unfortunately, it is difficult to quantify these savings, and, as a result, those administering cultural heritage too often see only the cost of the professional services and are tempted to economize unwisely in this field.
Based on successful cases of preventive maintenance, Feilden and Jokilehto (1998, p. 44) point out that:
Experience has proved that if a maintenance plan is followed for ten years, the amount of annual maintenance required decreases dramatically. Although it has been demonstrated that managing the conservation of historic sites on a preventive maintenance basis saves money, many administrators fail to understand this and are reluctant to commission regular inspections and organize a maintenance programme because of the cost of professional services and the necessary staff.
Example 5.1: Preventive maintenance for house restoration in Japan The restoration of wood houses in Japan could be taken as a good example of preventive maintenance. The houses are repaired almost every year. If a piece of wood is damaged, it would be replaced by another new piece of wood as soon as possible. Instead of repairing the house until it is in a bad condition, the owner would do the maintenance work every year. In this way, the house could keep its style for hundreds of years, although the wood is not one hundred years old. This phenomenon has aroused the international discussion about the notion of authenticity. Hence there was the birth of Nara Charter to clarify the definition of authenticity. Wood as a building material is difficult to stay for a thousand years as stone. Wooden architecture dominates historic buildings in China; the experience of wooden architecture conservation in Japan should be paid more attention to and referred to in China rather than ancient European building heritage dominated by stone as material.
5.6.4 The problem of interpretation: insufficient information and interpretation of heritage tourism
74
In Lijiang, there has not been any presentation or exhibition about local culture and history. The ways in which tourists can know about heritage significance are by reading from books or hearing from tour guides. In interviews, some local residents and shop owners mentioned that tour guides would give the wrong information to tourists. Some tourists complained that signs for the roads are not clear for them. Many tourists mentioned that the map of the old town is not clear enough for them to find the place although the map is designed in an artistic manner.
It can not be avoided that the visitor use will have some impacts on heritage. Good visitor management can minimize impacts. Interpretation is one of the most important visitor management strategies. With good interpretation, tourists can have good understanding of the town and hence respect the place. Interpretation can provide the visitor the best possible visiting experience while minimizing the risk of damage to the place. A better interpretation for visitors in Lijiang is very necessary and urgent. The recommended projects are: Establishment of a visitors centre. A visitors centre should provide tourists all the information about the trip. It should be placed in a convenient position for the visitors, either at the entrance of the old town or at the market square, the center of the old town. In most European cities, visitors centers are also called information centers and they are quite common. They can easily be found in every small city even in cities where the tourism industry is not dominant. Normally the information centre locates in the market square, or the city centre, Signage. Signs must be informative and interpretive. They must be carefully chosen, designed and placed. In the old town, the new signboards for the street names should take the place of the present one. A clearer version of the town map should be provided for tourists. The signs in the old town are not enough. At the same time, too many signs should be avoided. (See case study 5.1, Box 5.3) or the most important visiting site.
5.6.5 The problem of quality: Low quality of the tourism service industry
75
Since commercialization is unavoidable in the tourism industry in historic towns like Lijiang, the effort shouldnt be aimed at stopping commerce, but to improve its quality. From the comments of interviewees, the main problem for the tourism industry is the oversupply of tourism services. For tourism shops in the old town, the main problem is the similarity of souvenirs. The government recognized the problems and has tried to improve the tourism market since 2003, but the intervention is not effective. Some actions are not appropriate (See table 4.3). By the year 2004, these problems still exist despite the efforts of the government in terms of inputs.
Apart from souvenir shops inside the old town, big numbers of hotels outside the old town are quite remarkable. They either have fake architecture or are built in modern concrete block style. It is necessary for them to exist for the sake of tourism services, but the quality of the buildings constructed is not satisfactory.
In fact, most tourism shops in the old town do not have good income due to the intense competition among shops selling similar commodities. During the interviews many shop owners complained about the competition. It is estimated by a local business man that less than 10% of the shops have good business, and others can only make the end. Meanwhile, new shops are applying to open. In Kunming, the capital city of Yunnan Province, oversupply of big hotels leads to the collapse of the market. Every hotel decreases the price to attract tourists. The five-star hotels decrease the price to compete with three-star hotels. In Antalya, a popular tourist site in Turkey, a similar story happened. Oversupply of local guest houses caused market failures and the deterioration of the historic fabric.
5.6.6 The problem of marketing: Lack of cultural activities in the old town
Cultural activities can revitalize the historic towns. Commercial activities have the same effect but it should not be the only way. Commercial activities involve shop owners and tourists, while cultural activities involve more stakeholders. Cultural activities can promote traditional local culture in a lively manner. In this case, cultural activities are more important to promote as compared to commercial activities.
76
The market square in cities is normally the most important site for cultural activities. The market square in Lijiang was the trading market for the local people before. Now tourists occupy it. There are no other activities except certain traditional public dances every night. More activities shall be introduced in the market square, either traditional or modern. For instance, the vegetable market for local people should be revived, weekly or monthly. This was suggested by the UNESCO workshop in Lijiang in 2002, but not implemented. Concerts, either classical or pop, shall be held. Even performing arts could find its stage at the market square.
To explain the above discussion, the following examples of promotion of cultural activities were given which can be referred to the old town of Lijiang.
Example 5.2: The outdoor theatre in Halberstadt, Germany which is held in summer to promote cultural activities. In Halberstadt, Germany, every summer the outdoor theatre opens (See Box 5.5). Classic operas such as the Magic Flute are shown in the theatre every year. The outdoor theatre is located on top of the mountain with a bird-eye view of the old town. It is situated on the top of the mountain with fresh air and gentle drizzles, surrounded by forests. The theatre is quite attractive. Many people drive for one hour from very far to the theatre. The weather in Lijiang is warm all the year round, which is very good to have outdoor activities, but it rarely happens.
5.6.7 The problem of organisation: Lack of cooperation between stakeholders
Although there are a lot of efforts from many bureaus in the local government, the cooperation between stakeholders is not enough. The establishment of the HCMC helped to strengthen the cooperation between different bureaus in the local authorities. But the opinions of the local community and shop owners are rarely considered. In interviews, when asked about conservation issues, all the three groups, residents, tourists and shop owners attributed their opinions to the government. The government did a good work; The government does not do enough. One answered Conservation is governments job, which has nothing to do with me. Instead of cooperation, there are conflicts between different stakeholders. In interviews Shop owners complained about government enforcement when government workers implementing rules which are regarded as unreasonable by them.
77
In Lijiang, the relationship between decision-makers and residents is not one of cooperation because the government always gives directives to the residents. This makes the effectiveness of the actions unattainable. The co-operation between decision makers and professionals has not yet been developed but there are some good signs such as the respect for the Master Conservation Plan (2003) by the local authorities. As has mentioned before, the closest co-operation is between the government and developers, while professional advisers are ignored in the decisionmaking process. In Lijiang, there are no professionals among different levels of decision-making in the old town. Lack of professional knowledge may lead to the failure of conservation efforts. The expertise should be fully respected. Orbali (2000, p. 112) discussed political and professional conflicts in decisionmaking process in heritage management. She points out that in developing countries corruption ranges from small tips in order to complete or circumvent a tedious bureaucratic process, to the determination of land use plans to suit the interests of the ruling classes, against professional advice and often at the cost of the environment.
Case Study 5.1 Heritage management in the old town of Quedlinburg, Germany
Key points: Public education about the value of heritage Information center and tourism interpretation Sensitive commercial activities in the old town Open monument day to promote cultural activities The market square as the most important place for cultural activities
Background
The old town of Quedlinburg is a medieval town located in the middle of Germany. In history it was the former capital of the German Empire. This historical significance and cultural significance of a well-preserved medieval town with more than 1200 ancient half-timbered houses enabled it to be inscribed as a World Heritage Site in 1994. As a small town with the population about 23,000, it receives mostly day visitors rather than overnight visitors. In the year 2001, it is estimated that 1.3 million day tourists visited the town. The strategy for heritage management is to increase the length of stay and attract more tourists.
78
Activities
In Europe, many good examples of public education about conservation can be seen. There are huge numbers of museums in different types, sizes and content showing people the value of historic relics. In Quedlinburg, a historic town in Germany, many ways are used for public education about heritage conservation (See box 7.1):
A museum exhibits the construction techniques for traditional timber-framed houses. The museum itself is a typical timber-framed house and it is the oldest house in the old town of Quedlinburg. Books about heritage management in Quedlinburg are published from time to time. They are distributed to the public free of charge. The Quedlinburg Open Festival is an annual event to promote public awareness about heritage management, and to attract tourists as well. Many traditional techniques are exhibited at different
booths at the market square, such as exhibition of traditional tiles and restoration of fireplaces. In Quedlinburg, a research centre about restoration of traditional timber houses was developed. The centre takes part in the restoration projects in Quedlinburg and dissimilates knowledge to the public about professional restoration techniques.
In Quedlinburg, like in other historic towns in most European countries, the principle of restoration is to keep the authenticity and cultural significance of the place. The interiors of the historic buildings are adapted to modern uses but historic information is respected and remained as much as possible. Successful restoration cases by the local people can be found easily for example the historic hotel building-Theophano in the market square.
In Quedlinburg, the information centre is located at the market square. For most tourists, the market square is the first place to visit. From the information centre, they can take free maps and brochures. The centre also provides tour guide services and sells qualified souvenirs. Despite the wandering streets and lanes in the typical medieval town of Quedlinburg, tourists could find their way easily with the help of clear signs.
In historic towns, commercial activities should be sensitive and respectful of the historic environment. Good management of commerce can even contribute to the historic environment. In Quedlinburg, a restaurant near the market place creates a harmonious view with the historic environment. The color of the umbrellas for shading the tables was carefully chosen to match the color of the house behind (See Box 7.4). This beautiful view makes the restaurant an attractive place for tourists.
Quedlinburg, as other historic cities in Germany, has its special Open Monument Day every year to promote the city. For historic towns, it is a good chance to arouse the awareness of cultural significance and promote conservation. Normally during the Open Monument Day, all the museums are free of charge. There are free concerts and performances at the important visiting sites. Some museums open up to midnight to satisfy visitors.
79
The market square in cities is normally the most important site for cultural activities. The market place in Quedlinburg (See Box 7.6) is used for tourism commercial activities and as a weekly market for the local people. It also acts as a place for public concerts and as an exhibition place during festivals, and so on.
Case Study 5.2 Heritage management in the Shuhe Town, China
Key points: Sensitive commercial activities in the old town Cooperation between decision makers and professionals
Background
Shuhe Town is three kilometers north to the old town of Lijiang. It has similar urban structures and social structures as the old town of Lijiang, but on a smaller scale. The tourism industry has just begun to develop. Tourists are normally day visitors. They stay in the old town of Lijiang and come to the Shuhe Town for a few hours visit. The tourism strategy is to develop a tourism service area including hotels, restaurants and shops beside Shuhe Town to increase the length of stay in the Shuhe Town and to attract more tourists.
Activities
Sensitive commercial activities: Different from the old town of Lijiang, commercial activities in Shuhe Town are more sensitive to the historic environment. There are many good examples of sensitive commercial shops in Shuhe Town. A caf near the Shuhe Bridge is an example (See Box 5.4). Unlike shops in the old town of Lijiang, with entrances surrounded by red lanterns, this caf totally looks like a local house with a carefully designed signboard.
Cooperation between decision makers and professionals: The conservation work in the Shuhe Town is a good example of cooperation between decision-makers and professionals. In this case, real decision-makers are real estate developers, not the local government. The reason for this is that because of the funds held by the developers, it makes it easy for them to influence the decision-making process. Unlike other development projects with poor planning by developers, this project involved close cooperation with professionals from the university (Kunming Technical University, Architecture Faculty). The conservation activities basically follow a plan made by professionals. Shuhe town has a more authentic historic environment and a less commercial atmosphere. It has therefore won more reputation than the old town of Lijiang.
5.6.8 Concluding remarks
80
These problems in heritage management are easy to find out but in reality they are complex to implement. The complex relationships among key players in the decisionmaking process may damage the efficiency in implementation. In China, the identification of heritage has undergone dramatic changes with the changes in the political ideology. In Lijiang in 1994, policy promotion stimulated the development of the tourism industry rapidly. Within one year, tourist numbers increased almost three times. When the government realized that the increasing numbers of tourism shops are not in harmony with the old town, an additional license was introduced to control the type and number of tourism shops. In one year, all the shops were checked. Now they are being monitored. Under the highly centralized political system in China, the efficiency of implementation is not a big problem for heritage management, but it is difficult to make the right decisions due to poor professional knowledge and sometimes corruption.
It is impossible for these seven problems to cover all the problems in heritage management in Lijiang. The complexity in reality is normally a combination and interaction of several issues. Heritage management is a continuous process with new problems emerging with time. At each stage of urban development, there are different problems and accordingly, appropriate strategies should be applied. These are the key problems in Lijiang at the moment. Heritage management in Lijiang has gone a long way in a relatively successful direction. If these problems are resolved, the old town would enter another new period of development.
81
Box 5.1: Examples of public education about heritage conservation in Germany
In Wismar, Germany, a workshop at a main tourism site showing tourists how to make traditional bricks.
In Quedlinburg, the oldest building in the town is used as a museum, exhibiting constructing techniques for timber-framed architecture.
82
Box 5.2: Public education for appropriate restoration in Lijiang
A good example of authentic restoration in the old town of Lijiang. Restored by an artist.
Another good example of authentic restoration in Shuhe Town, 3km north to the old town of Lijiang. Restored by a university professional.
83
Box 5.3: Examples of interpretation in historic towns
A street signboard in the market square in Quedlinburg, Germany. In Lijiang, tourists are confused by the street names due to insufficient information.
The information board about the city. In Wismar, Germany. This kind of information board is quite common In Europe, while in Lijiang, you can hardly find any.
Box 5.4: The commercial activities in historic towns
84
In Lijiang, every possible space is used for commercial activities.
A restaurant near the market place in Quedlinburg, Germany. Commercial activities are appropriate and sensitive to the historic environment.
A caf in the Shuhe town, 3 km north to the old town of Lijiang. It is a good example of careful and sensitive commercial activities. Its modest appearance shows the respect for the historic environment and quite attractive for tourists.
Box 5.5: Promotion of cultural activities in historic towns
The outdoor theatre in summer in Halberstadt, Cultural activities can promote the old town. The weather in Lijiang is perfect for organising outdoor activities, but they rarely happen.
The Quedlinburg Open Festival. In Germany, almost every city has an opening day every year to promote the city. For historic towns, it is a good chance to exhibit the cultural significance and promote conservation.
85
Box 5.6: The market square
The market square in Quedlinburg, Germany. It is used for tourism commercial activities and as a weekly market for the local people. It also acts as a place for public concerts and as an exhibition place during festivals, and so on.
The market square in Lijiang. It was the trading market for the local people before. Now tourists occupy it. There are no other activities except certain traditional public dances. More activities shall be introduced to the place, either traditional or modern. For instance, the vegetable market for local people should be revived, weekly or monthly. Concerts, either classical or pop, shall be held. Even performing arts could find its stage at the market square.
Chapter 6 Scenarios dealing with the future of the old town

The development of the town is highly dependent on the central and local authorities for policy interventions. Based on the discussion in the previous chapters, alternative policy scenarios could be envisaged dealing with the future of the old town.
Figure 6.1: the structure of scenarios for the old town of Lijiang
Pre-conditions Scenarios Trend scenario Tourism oriented scenario Conservation oriented scenario Compromised scenario Evaluation Efficiency criterion Equity criterion Sustainability criterion
External and internal factors Source: Authors summary
Risks
86
6.1 Pre-conditions for the scenarios
The prosperous tourism development in Lijiang is not only due to its unique cultural resource and abundance of tourism infrastructure, but also the broader system of the tourism industry in the whole Yunnan Province.
In 1994, the Yunnan provincial government issued a policy dealing with the economic development of the province. This policy was aimed at developing the tourism industry and the tobacco industry. The policy stimulated the tourism industry in the whole of Yunnan Province. The old town of Lijiang was one of the sites identified to develop the tourism industry. Since then, huge changes happened. Policy intervention was the main factor which influenced urban development in Lijiang.
The rapid and speedy boom of tourism in Lijiang is surprisingly high. In the present situation, the aim of policy intervention is not to promote mass tourism, but to improve on the quality of tourism and to promote the right conservation activities.
6.2 Description of the scenarios
Based on the perspectives of urban conservation and heritage tourism and considering the present situation, four scenarios are formulated: trend, tourism oriented, conservation oriented and compromised scenarios.
6.2.1 Scenario 1: Trend scenario
In this scenario the future of the old town follows the hypothesis of the continuing development of the current trends.
Conservation: The so-called conservation efforts mean another boom of fake architecture construction which includes the reconstruction of historic sites. Historic information is being lost due to a rush in restoration work by unprofessional teams. Good restoration work can be found, but it is not predominant. 87
Tourism: The tourism industry continues to develop. Despite disappointing opinions from some tourists, the good reputation of the old town still attracts increasingly more tourists.
The social structure: The local people continue to abandon the old town and move to the new town. At the same time, the proportion of old people is increasing. More and more people from outside live in the old town. Some are workers employed in the tourism industry. Others are tourists who want to experience the local life. The population size may not decrease but the proportion of different groups can change. Under the present policy, more local people participate in the tourism industry.
The economy Commerce: Commercial activities related to tourism continue to dominate in areas where tourism is predominant and they expand gradually to other areas of the old town. The quality of souvenirs would probably be better with more Services: Services are tourist oriented without concern for health, welfare, Economic growth: The structure of the economy is based on the tourism industry. Real estates in the new town develop fast, but it would be difficult to have a high quality real estate development project. The new town provides the tourism service industry for the old town, such as hotels, restaurants and industries for tourism products. education and sport facilities for the local community. varieties.
6.2.2 Scenario 2: Tourism oriented scenario
This scenario encourages maximum exploitation of cultural resources through tourism development. It is quite close to the trend scenario.
Conservation: Conservation works for the beautification in tourism areas. More tourism sites inside and outside of the old town would be developed to attract tourists.
88
More attention will be paid to the environment in areas where tourism exists while residential areas are overlooked. The old town continues to be a typical theme park.
Tourism: The number of tourists would increase. Mass tourism instead of cultural tourism is dominant. The town would be developed into a theme park for tourists. It would be difficult for tourists to have good visiting experiences. Tourists could not get a good Interpretation of the cultural significance about the old town.
With more negative impacts as a result of mass tourism, tourists are disappointed by the old town. The town is crowded, full of fake souvenirs and losing its attraction. The tourist numbers would decline. When the negative impact of tourism becomes more and more serious and sufficient intervention is not taken or improper intervention taken, the town would seriously deteriorate and lose its attraction. The town would be returned to the local people but partly damaged and not as beautiful as before any more.
The social structure: The old town would become an expensive place to live. It is difficult for the local people to afford. Although the policies provide for a bonus to the original inhabitants such as a subsidy for the price of power, the overall living conditions are not attractive for residents. Most of the local people would have moved out of the town. Outsiders such as employees and visitors would be the main inhabitants in the old town.
The economy Commerce: Commerce dominates the local economy. New shops will open. Numerous shops would cause intense competition and the market would be Services: All necessary services related to tourism requirement are developed, such as banks, post offices and hospitals. Services unrelated to the tourism industry are not attended to, such as education, sport facilities and vegetable Economic growth: The town has been transformed from a historic town to an independent tourist centre in the southwest of Yunnan province. 89 markets. filled with low quality souvenirs.
6.2.3 Scenario 3: Conservation oriented scenario
The conservation oriented scenario restrains any further tourism development while at the same time encouraging the amelioration of services in saturated area.
Conservation: Conservation is the priority of heritage management. The conservation effort would be to keep the authenticity of the place and avoid the negative impact of tourism to minimal levels.The planned real estate projects for the areas around the old town aimed at the tourism market should be modified or stopped. All improper constructions under way would stop. Efficient and effective intervention would be conducted. Conservation activities follow the opinions of professionals. More policies are introduced to encourage the local people to live in the old town. Necessary facilities such as vegetable markets, hospitals and drug shops are still in the old town.
Tourism: Considering the negative impact of tourism on the environment, the tourism marketing strategy should be aimed at restraining tourist numbers. No further tourism facilities are encouraged but the existing tourism services should be ameliorated. Improper actions of transforming the old town to a theme park would stop.Tourists would have a better cultural experience. The social structure: The old town is a desirable place to live. The town is a paradise for both the local people and their visitors. It is competitive to live in the old town for both the local people and people from outside.
The economy Commerce: The traditional handicraft industry is promoted in the tourism sector. Souvenir shops provide high quality products. Services: More efforts are put in improving the living conditions of the local community. Local residents have convenient access to the food market, education, entertainment, public space, and so on.
90
Economic growth: Economic growth is not remarkable as tourism oriented scenario. Economic growth is slow, but it is more sustainable.
6.2.4 Scenario 4: Compromised scenario
This scenario proposes a balanced development option for the old town. It encourages tourism development but there are constraints imposed by the conservation of the environment. So far, the old town has become a theme park with the continuation of the current policy leading to the creation of mass tourism in both the trend scenario and the tourism oriented scenario. The conservation scenario encourages conservation but it reverses current trends. The goal in this scenario is to make a proper balance between urban conservation and tourism development.
This scenario is based on a hypothesis of close co-operation between different stakeholders from both public and private sectors.
Conservation: Conservation efforts get a lot of support from the tourism industry. Income from tourism contributes to conservation activities. The importance of authenticity is widely recognized by the society. The construction of new fake architecture would be controlled. Conservation activities are on the right track.
Tourism: The quality of the tourism industry, instead of the quantity of tourists is the development goal of the tourism industry. Tourists are provided with good interpretation and they are expected to have high quality visiting experience. The tourism market would be rational and sophisticated.
The social structure: Enrichment of the existing social patterns is expected. The town attracts all kinds of people to live in. Local people have a stable proportion in the social structure.
The economy Commerce: Commercial activities are closely connected with the local culture. Traditional handicrafts are promoted through the tourism industry. 91
Services: The living conditions of the local community are improved. Community services are provided such as food markets, education, sport facilities and Economic growth: Significant economic growth is expected in the medium and long term. The economic system is balanced and sustainable. community centers.
6.3 Evaluation of the scenarios
The evaluation of scenarios is based on the overall goal of urban development: integrated social, economic and cultural development. Urban conservation and the tourism industry are part of sustainable urban development strategies. The criteria for evaluation should cover the aspects of the social community, environment, economics, and culture. The evaluation should also consider the short term and long term effects, costs and benefits. Based on this consideration, the criteria are identified into three aspects: efficiency criteria, equity criteria and sustainability criteria.
Efficiency criteria: Overall income and employment in the city Cost of policy
Equity criteria: Income and employment of the local people
Sustainability criteria: Natural environment quality Authenticity of tangible and intangible heritage
Based on these criteria, the ranking of the 4 scenarios are evaluated:
Table 6.1: The evaluation of the scenarios based on criteria

The highest weight of criteria 1 2 Overall income and employment in the city Cost of the policy Resulting ranking of scenarios Short term Long term 2>4>1>3 4>3>1>2 2<1<4<3 4<1<2<3
92
3 Income and employment of the local people 4 Natural environment quality 5 Authenticity of tangible and intangible heritage Source: Authors summary
2>1>4>3 3>4>1>2 3>4>1>2
4>1>2>3 3>4>1>2 3>4>1>2
From the above table, it can be seen that in the short term, scenario 2 and scenario 3 have more occurrences in the first ranking. Scenarios 2 and 3 also have more occurrences in the last ranking. They seem to be conflicting scenarios. In the long term, scenarios 3 and 4 have more occurrences in the first ranking. Scenario 4 has the lowest cost in the long term.
Now it is possible to make an overall ranking of the four scenarios according to the ranking occurrence of different scenarios.
In the short term, 2>4>1>3; In the long term, 4>3>1>2.
This is a multi-criteria model to evaluate possible policy interventions. Munda and Nijkamp (1995, p. 75) have pointed out the aspect of the multi-criteria: There is no solution optimizing all at the same time and therefore the decision-maker has to find compromise solutions.
6.4 The feasibility of the scenarios
The development of the scenarios requires the study of a broader external system. In terms of feasibility of scenarios, external and internal factors are considered.
6.4.1 External factors
The external system includes the background in the whole country and in Yunnan Province. With the rapid economic, social and cultural development in China, urban development has entered a new period. Historic towns in China, such as Lijiang, are facing great opportunities to keep the cultural significance.
In China, the good signs for heritage conservation are:
93
The demolishment of historic districts such as the inner town in Beijing is strongly criticized by the media and the local community. Cultural significance has been The development of real estates using modern blocks in historic towns is The notion of World Cultural Heritage and its significance are widely recognized With the overall development of an international style in urban construction in almost every city in China, people are tired of seeing similar concrete blocks. In Heritage conservation theories and practices in developed countries are introduced to China, which promote the development of heritage management at The tourism industry has begun to transform from mass tourism to multi-tourism Government intervention in heritage conservation and the tourism industry has been improved and strengthened. At the provincial level, The old town of Lijiang is one of the most essential tourism sites in the classic The railway between Lijiang and the capital is under construction, which further The sites around the old town are planned to open to the tourism market. the authorities to the local people. promotes the development of mass tourism. tourism route. such as cultural tourism and ecological tourism. academic levels. this situation, historic towns with special identities and varieties attract people. by the nation. gradually restricted and controlled. paid attention to and aroused a broad debate in society.
The significance of heritage conservation is recognized at different levels, from The experts and professionals from universities and research institutes are often invited to give opinions about heritage management in Lijiang.
6.4.2 Internal requirement
The scenarios differ significantly in their requirements for the economic and organizational context.
94
Scenario 1 requires the existing organizational structure of the local authorities.
Scenario 2 requires a strong interest from real estate developers, the flexibility of policy intervention into the tourism market, and the close co-operation between local authorities and investors.
Scenario 3 requires the close co-operation between local authorities and heritage management professionals also between the local authorities and local communities.
Scenario 4 requires the close co-operation among the different stakeholders, both public and private sectors.
6.4.3 Risk analysis
Every scenario is based on certain hypothesis. The external factors and internal factors may change in the development process. The assumptions for the risks are

Natural disasters such as a serious earthquake Less arrival of tourists due to an economic recession Competition from other tourism sites The town losing attraction due to loss of authenticity or deterioration of the environment.
6.5 Retrospect
In this chapter, the methodology of scenario is used to discuss about the future options for the old town of Lijiang. Different scenarios present different approaches towards heritage management.
In the first scenario, the present problems remain. The heritage resource is maximized for the tourism industry. The conservation effort is efficient, but not effective. The town confronts a big challenge for the loss of authenticity.
95
The second scenario aims at maximum exploitation of the cultural resource. Driven by short term economic profits, it most likely happens in the future. In the long term, the negative impact of tourism exploitation would be remarkable, but the long term effect is insufficiently considered by decision-makers at present.
The third scenario is the most ambitious one, which seems to be against the main trend of the social development. It is difficult to implement. It requires a high understanding of culture significance. But from a long term consideration, it is the role of policy intervention, responsible for the future generation and for heritage itself.
The fourth scenario is highly related to the entire social system of the city. It requires the local authorities to take wise decisions in any circumstance. A strong cooperation between the public and private sectors is required.
The evaluation of the scenarios takes into considerations of non-economic measurements such as the quality of the natural environment and heritage significance. It is different from traditional methodology taking economic development as the main criterion. Therefore, it is suitable for the strategy of sustainable development. The development of the scenarios could be seen as an effort to confront the uncertainty of the future. The scenarios do not predict the future; it is the process of forecasting. The development of scenarios along with the hypotheses can help the decision-makers to take all the envisaged possibilities into account. The scenario approach, although based on a structured system including pre-conditions, evaluation, external and internal factors, does not aim to define an optimal solution. The hypothesis for the complex social system and unpredictable factors could not be confirmed until the reality happens.
96
Chapter 7 Conclusion and recommendations

From an economic point of view, heritage can be considered as an externality. Externalities such as pollution and water quality are a main concern for the public sector rather than the private sector. In comparison with the private sector, the public sector has a responsibility to protect public interests and strike a balance with interests of different groups.
Different levels of the public sector have different responsibilities. For the old town of Lijiang, the following are the recommendations for different public sectors.
7.1 The recommendations for the urban heritage conservation system in Lijiang
Recommendations for the national government
97
The national government should strengthen the legal system in the field of urban conservation and develop supportive organizations dealing with urban heritage conservation at the national level, such as National Fund for Urban Heritage Conservation and National Research Centre for Urban Heritage Conservation.
Recommendations for the Yunnan Provincial Government
The provincial government should support national policies and issue development strategies for urban conservation. The provincial government should ensure that land is properly used in heritage sites when authorizing land development plans for the cities. Urban heritage conservation should be integrated into the whole regional development. A special fund for urban heritage conservation should be established at the provincial level.
Recommendations for the Lijiang city government
The Lijiang city government should implement national and provincial policies and organize conservation activities. Its responsibilities should include:
Integrating heritage conservation into the overall city development strategy.

Mobilizing funds for heritage conservation. Organizing the management plan for the heritage site Implementing the conservation plan Cooperating with professionals in urban conservation and organizing research about heritage conservation
Recommendations for the HCMC
The HCMC is an organization which is responsible for implementing conservation activities in Lijiang. Its responsibilities include:

Organizing heritage conservation research Cooperating closely with experts in heritage management 98

Implementing conservation activities Daily monitoring of conservation work and maintaining historic fabric
7.2 A recommended system and model for urban heritage conservation in China
Based on these recommendations, a system and model for urban heritage conservation in China is suggested in figure 7.1:
In this model, a site management committee similar to the HCMC is the core unit for the towns in the urban conservation system. The national and provincial governments provide laws and policies which support heritage management. The committee of experts provides technological support for heritage management. The private sector provides personal input which would enable them to get profits and this would in turn contribute to urban conservation.
Compared to the present situation, this model could improve on the following issues: Real estate developers are expected to conduct projects which contribute both to their profits and heritage conservation. This would amount to a significant contribution to urban heritage conservation by real estate developers. According to this model, the property owners are expected to be well integrated into the whole urban heritage conservation system. Their interests should be integrated in real estate development. Their relationship with real estate developers should not be hostile but cooperative. This model strengthens the close co-operation between the private sector and the public sector. The mechanism of establishing a site management committee such as the HCMC is recommendable to other historic cities in China.
99
It is recommended that a committee of experts should be strengthened, unlike before, when their opinions were not fully taken into consideration. Experts are expected to have a close cooperation with the site management committee. An urban heritage conservation system at national level is expected to be established. National urban heritage conservation laws and policies should be established. In addition to this, a national urban heritage conservation fund should be set up and a heritage research centre should be developed. Similar to the national urban heritage conservation system, a system at the provincial level should be developed which includes urban heritage conservation laws, policies, conservation funds and a conservation research centre.
This model considers the long term goal of urban heritage conservation which results into the overall development of the towns and makes profits for different groups.
100
Figure 7.1: The recommended system and model for heritage management in China (Lijiang as a case study)
National Government
National urban heritage conservation law National urban heritage management policy National urban heritage conservation fund National urban heritage research centre
Provincial Government
Inputs on real estate contributing both to their profits and conservation Real estate developers and investors
Additional urban heritage conservation law Provincial urban heritage management policy Provincial urban heritage conservation fund Provincial urban heritage research centre
City Government Private sector Public sector Site management committee (Such as the HCMC)
Fund raising for conservation Site management control
Inputs on property contributing both to their profits and conservation
Property owners
Heritage management activities
Committee of experts
Heritage management consultancy Heritage management monitoring
Source: Authors summary.
101
7.3 Concluding remarks Among historic towns in China, the old town of Lijiang has its uniqueness in that it is at a stage of mass tourism development and a great effort has been put into heritage conservation. But its present outlook could offer possibilities in future for many historic towns in China to adapt similar conservation strategies. Despite of the problems in the tourism industry and conservation, remarkable efforts in the field of heritage management in Lijiang is outstanding among historic cities in China. In fact, it is taken as the good model for successful tourism development and heritage conservation by the other historic towns in China. Town managers from other historic towns in China often come to visit Lijiang and try to learn from Lijiang. Therefore, the way how Lijiang is conserved would be significant for all the historic towns in China.
Conservation of historic towns involves seeking a delicate balance between competing priorities for social, cultural and economic development. This balance needs to be monitored and continuous efforts must be put in place to maintain this balance. If the old town of Lijiang keeps developing in the right way and being attractive, the other historic towns will see the hope and learn how to balance between heritage conservation and economic development. For historic towns in China, one successful example of heritage conservation in the same country is much more effective than the numerous successful examples in Europe or other foreign countries.
The implementation of these recommendations and the establishment of a national heritage conservation system is a long-term process. If they begin to establish this system, the intervention on the old town would be in a sustainable way. The town acts not only as a cultural exchange center for tourists, but also as a paradise for the local community. The following beautiful views which can be seen today would be appreciated by the future generations if they can be properly conserved today.
102
Figure 7.2: The beautiful views of the old town
Effective management strategies are necessary if these beautiful sceneries and heritage are to be passed by our generation to the future generations.
103
Annex 1: Figures and tables F1.1: Municipal framework for the organization of conservation in the old town of Lijiang F1.2: Interactions between stakeholders dealing with heritage management T1.1: Projects dealing with heritage conservation in the old town of Lijiang since the year 1994
104
F1.1: Municipal framework for the organization of conservation in the old town of Lijiang
State level
National government
Province level
Yunnan provincial government
City level
Lijiang city government
County level
Lijiang town government
Ninglang County government
Yongsheng County government
Huaping County government
Yulong County government
Bureau and executive level

Management office Security and fire team
Heritage Conservation and Management Committee (HCMC)
City construction bureau
Committee office
Committee company
105
F1.2: Interactions between stakeholders dealing with heritage management Supply Real estate companies Shop owners Tourists Demand Local community
MARKET
LOCAL COMMUNITY
Central government Provincial government The city government HCMC
GHF UNESCO Tongji University
GOVERNMENT
NATIONAL AND INTERNATIONAL ORGANISATIONS
Heritage
HERITAGE
106
T1. 1: Projects dealing with heritage conservation in the old town of Lijiang since the year 1994
year 1997 Project Reconstruction Project description Restoration of 4,000 buildings damaged by the earthquake Reconstruction of Dongda Street, Mu Palace, Wangulou Demolition of inharmonious buildings: 25,300m Improvement of infrastructure systems: Road restoration 5.5 km; Project for infrastructure cables: 5km; Increase of sanitary facilities: 22 new toilets; Street lights: 220 sets; Night lighting system in tourism area (Dongda Street and Sifang Street); Construction of the sewage factory, sewage pipe (main pipe9.8km, subpipe 64km) system; Development of fire control The development of a master conservation plan Water supply and sewage system: maintenance of old 6.5km water pipes, new water supply pipes 13.3 km. new sewage water pipe 63km. Fire emergency system: every household equipped with two fire extinguishers, maintaining existing 600 km of electrical lines for households, equipment of two fire engines and one lighting car, equipment of two pumps for every street office. Green space construction: 340 trees planted, and equipping chairs around trees Lighting system: Equipment lighting system. 4015 meters street lighting, 1160 street lights. 10396 set of roof lamps, reflection lamps 1185 sets. Road restoration: 12,500m road restoration, 41,400 m reconstruction. During construction, every historical stone was numbered to put back in the same order after cables were put underground. Toilets for tourists: 4- four-star standard toilets were constructed. Electrical system: Change of the old electricity lines 375 km, change of 6198 electricity calculating boxes, all lines are moved from the ground to underground pilot project: 38 courtyard houses, which include 60 households restoration Further maintenance of the electrical system in the old town. Reconstruction of the Lion Mountain Park River band revitalisation 3,500 meters, tree planting along the rivers, restoration of five bridges, and two wells. 100 residential buildings restoration Military base moving out of the old town Process Finished Fund needed
(Unit: RMB)
2,460,000,000
Infrastructure
Finished
Source of Funds The city government, bank loan, donation for earthquake
Project manager The city governm ent
2002 2003
Planning Infrastructure
Finished Finished Finished
400,000 30,000,000 Unclear
HCMC, GHF HCMC, bank loan HCMC, bank loan HCMC, bank loan HCMC, bank loan HCMC, bank loan HCMC, bank loan HCMC, bank loan GHF HCMC HCMC HCMC, bank loan GHF HCMC, bank loan HCMC, bank loan
HCMC HCMC HCMC
Finished Finished Finished
1,900,000 5,180,000 Unclear
HCMC HCMC HCMC
Finished Finished Finished Ongoing Ongoing Planned Planned Planned Planned
2,000,000 4,510,000 500,000 11,000,000 3,000,000,000 3,000,000 800,000 1,500,000,000 2,000,000,000
HCMC HCMC HCMC HCMC HCMC HCMC HCMC HCMC HCMC
2004
House restoration Infrastructure Open space development House restoration Reconstruction
2005
Restoration of some monuments (Wen temple, wu temple, Yuhe academy, ancient house of local celebrities) Source: Edited by author, based on HCMC work report.
107
Annex 2: Boxes Box 1: The Overall View of Lijiang City Box 2: The Old Town and the New Town: Present and Planned Box 3: Street and River Features in the Old Town of Lijiang Box 4: Vernacular Architecture in the Old Town Box 5: Land Use in the old town: Present Situation and Planned Box 6: Improper Reconstruction 1------ Nanmen Reconstruction Project Box 7: Improper Reconstruction Project 2------ Yu River Bank Reconstruction Project Box 8: Entrance to the Old Town: The Grand Hotel Box 9: The Last Piece of Farm Land in the Old Town Box 10: The Last Market (Zhongyi Market) in the Old Town Box 11: The Changes in the Function of the Market Square in the Old Town Box 12: The Popularity of Fake architecure in the old town or around the old town Box 13: The Theme Park Phenomena in the Old Town
108
Box1: The Overall View of Lijiang City The Location of Lijiang City The Natural Environment of Lijiang City
The Aerial View of the Old Town of Lijiang
The Aerial View of the New Town of Lijiang

Source: The Lijiang Conservation Master Plan, edited by author
109
Box2: The Old Town and the New Town: Present and Planned.
The Previous Land Use (2002) 2020) Land Use Plan by Lijiang Master Plan (2003-
The New Town

Size: 5.6 km Population: 55,100
Dayan Town
SIze: 24,4 km Population: 205,000
The Lion Mountain
The Old Town

Yulong Town
SIze: 10.6 km Population: 65,000
Xintuan District
Ambition for expansion of the built area: (4.2.3) The population and size in the Lijiang City: present and planned 2002 2020 Population 69,100 300,000 Size 7 km 41.4 km According to the plan, the annual population growth rate is 18.5%!
The town and the natural environment The northern and western mountain (the Lion Mountain) of the old town can resist wind coming from the north and south in winter. While the town is open in the south and east so that in summer wind can come to the town.
Source: The Lijiang Conservation Master Plan, 2003, edited by author
110
Box 3: Street and River Features in the Old Town of Lijiang
Street system in the old town Types of Street view in the old
Some typical traditional streets in the old town.
The typical types of water way views in the old town.
111
Box 4: Vernacular Architecture in the Old Town
The typical structure of vernacular architecture in Lijiang.
The typical courtyard house in Lijiang.
The typical type of architecture in Lijiang.
The typical streets in the old town.
112
Box 5: Land Use in the old town: Present Situation and Planned Previous Land Use (2003)
The Last trade market (Zhongyi Market) for the local people.
The Last Piece of Farm Land near the centre of the Old Town
Planned Land Use by Master Conservation Plan

Yu River Bank Reconstruction Project The Market Square
Mu Mansion Nanmen Reconstruction Project
Land use changes: Industrial land changed to commerical land or residential land; Administration land changed to commerical land or residential land; Farmland changed to commercial land; Some land changed for parking; Some land changed to green open spaces;
113
Box6: Improper Reconstruction 1------ Nanmen Reconstruction Project
A lot of fake architecture. Straight and wide street take the place of a winding lane.
Newly built building
Authentic building
Concrete and wood used for fake architecture.
Size: 12ha; Investment: 1.4 billion RMB. Authentic historic buildings were demolished while fake architecture was built. Local people were moved away while tourism shops were opened. Residents were forced to leave their homes without getting enough compensation. In the interviews, they complained that they did not want to leave their homes where their families lived for generations. Source: photos by author, edited by author.
Box 7: Improper Reconstruction Project 2------ Yu River Bank Reconstruction Project

The Jade Dragon Snow Mountain, holy mountain for the local people.
Previous historic buildings.
Newly built buildings.
The newly built buildings seen from far. It was supposed to be an open space so that the view to the Snow Mountain is not blocked.
Old buildings being demolished.
Size: 20ha; Investment: 3 billion RMB. The same story as Nanmen Reconstruction Project. Authentic historic buildings were demolished while fake architecture was built. Local people were moved away while tourism shops were opened. Some historic buildings were listed as important historic buildings by the local government.
Concrete and wood for fake architecture.
Source: photos by author, edited by author.
114
Box 8: Entrance to the Old Town: The Grand Hotel

The four-star Grand Hotel at the entrance of the old town. It supposed to be an open space so that the view to the Snow Mountain is not blocked. The Jade Dragon Snow Mountain, The Holy Mountain for the local people. The view to the Mountain is blocked by modern buildings. The other modern buildings which can be seen from the entrance.
Box 9: The Last Piece of Farm Land in the Old Town

The farm land provides an open space in the south, a perfect buffer zone for the old town. But it has been planned by an investor to develop a resort district despite the strong objection by professionals and the local community.
Box 10: The Last Market (Zhongyi Market) in the Old Town
The last market in the old town. Local people come here everyday to buy daily commodities. It is planned to develop it into a resort. Local people complained about the inevitable inconvenience once it is demolished.
115
Box 11: The Changes in the Function of the Market Square in the Old Town
The market square is said to be the heart of the old town. Eight streets meet here. It was a place for local people to trade for hundred of years.
The Market Square in the 1920s. Photo taken by an American Researcher Joseph Rock. The Market Square in History
Used by the local people in the early morning for selling food to school children when tourists have not arrived yet.
Used by the local people for dancing competitions. Used by tourists as the most important spot. The Market Square Today
The market square in the neighbouring town (Shuhe Town) still keeps its tradition. Food selling Vegetable selling View of the market
116
Box 12: The Popularity of Fake Architecure in the Old Town or Around the Old Town
A four-star hotel near the old town.
A private hotel near the old town.
A tourism site in the old town.
An important tourism site: Mu Mansion.
The street from the town entrance to the market square.
Authentic historic street.
117
Box 13: The Theme park phenomena in the old town
Historic brick wall.
Walls were drawn and painted to imitate brick walls. A four-star toilet in the tourism area. While in residential areas, public toilets lack basic maintenance.
Improper restoration in the old town
The uniform lamps show the approved type by HCMC.
In the tourism area, 50,000 uniform plants were put at the entrance of each shop, which got much criticism from different groups. In the tourism area, waterways are clean. Fishes were put inside by the HCMC. Without sand and grass at the bottom of the river, It is difficult for fish to stay. In the residential area, waterways are dirty and full of trash. Banks with natural soils still exist. Stones and plants can be seen at the bottom.
The other type of lamps found in the old town. Special and artistic., but disagreed by local authorities.
118
Annex 3: Interview description 1. Time of interviews The interviews were conducted in March 2004. It was shortly after Spring Festival which is the biggest festival in China and the peak season for tourism. 2. Interviewer All interviews were conducted by the author. 3. Interviewees T 3.1: General information about interviewees Group Age Gender Origin Others 20 shop owners Under 30: 2 Female: 10 Local people: 11; Shops in tourism area:
30-60: 15 above 60: 3 Male: 10 Outsiders: 9 16 shops outside tourism area: 4
20 residents 20 tourists
Under 30: 4 30-60: 9 above 60: 7 Under 30: 9 30-60: 10 above 60: 1
Female: 6 Male: 14 Female: 10 Male: 10
Local people: 20; 0 Outsiders: Chinese: Foreigners: 14; 6
3.1 The interviews with the shop owners For interviews, the author walked along the streets in the tourism area where shops were for tourists and talked with the shop owners one by one when they did not have business at the moment. Shop owners in the residential area were also interviewed. Author talked with entrepreneurs casually, but asked them questions intentionally. The author tried to balance the types of shops, the gender, origin and age of the shop owners among the 20 interviews. 3.2 The interviews of the residents The interviews were conducted by talking with the residents when walking around the residential area. The author met the interviewees in the streets or knocked at the door and entered to talk. Some residents were still doing house work during the interviews. Residents in restaurants, bars or bookstores were also interviewed. Most residents in the residential area are old and retired. The age and gender of interviewees tried to be balanced in 20 interviews.
119
3.3 The interviews with tourists
The interviews with tourists were mostly conducted in bars at night by talking with customers. At night, tourists were free and glad to talk. The 20 people interviewed reflected a balance in age, gender and origin of the tourists. 4. Question design All the questions were open-ended so that answers would be more honest than precoded questions, although they were more difficult to edit and tabulate than precoded questions.
The main questions for the three groups are: What do you think about tourism in Lijiang? What do you think about conservation in Lijiang?
There are also special questions for each group.
The group composed of shop owners. I wanted to know the situation of business. Therefore, I asked questions about rent, tax, the problems shop owners facing and their plans for business. I also paid attention to the difference of businesses between shop owners from outside and the local
residents. The group composed of residents. I asked them about the impression of businessmen from outside. Businessmen from outside use heritage to earn money and they live with the local residents. From the questionnaire survey in 2002, I knew that people from outside were better at business than the local people. There may be conflicts between the local residents and outsiders for profits. The local people are the owners of historic houses; therefore, I also
asked them how they deal with their own properties. The group composed of tourists. I only asked about their opinions regarding tourism and conservation.
120
5. Methods The methods used for interviews were: Taking notes by pen and recording every sentence which interviewee says. Grouping answers according to different opinions by each group. Tabulating and editing results.
121
Annex 4: Interview Findings

1. Interviewees
The information about the interviewees was: Shop owners were mostly middle-aged;
Residents were mostly middle-aged or old;
Tourists were mostly middle aged or young; 2. Overview of the opinions about conservation by three groups
T 4.1: Number of opinions about conservation

Positive opinions Negative opinions Neutral opinions Total Shop owners 12 19 0 31 Residents 13 17 0 30 Tourists 16 11 1 28 Total 41 47 1 89
Three groups have a similar number of opinions. Shop owners and residents have more negative opinions than positive opinions. Tourists have more positive than negative opinions.
3. Overview of the opinions about tourism by three groups T 4.2: Number of opinions about tourism
Positive opinions Negative opinions Total Shop owners 15 17 32 Residents 27 24 51 Tourists 27 32 59 Total 69 73 142
Shop owners do not have as many opinions about tourism as residents and tourists. Shop owners and tourists have more negative than positive opinions, but residents have more positive opinions than negative opinions.
122
4. Findings of opinions about conservation
T 4.3: Opinions about conservation from interviews by three groups

Issues Stakeholders (positive 22) Stakeholders (negative 6) Opinions Good, government works a lot Infrastructure construction is a good work The government work not enough not effective Too much corruption in government Government comes and orders me to change many things, which make things worse It is governments work, nothing to do with me Good, environment clean and beautiful The town well conserved No demolition but restoration I will pay more if it is used for conservation Conservation fees should be charged Tourism is a way of conservation to avoid loss of local culture Conservation good, that is why so many tourists Tourism help for conservation such as finance Conservation works for tourism and commerce. Not good. Conflict between conservation and tourism development. Tourism development has bad impact on conservation Loss of authenticity New materials used in the old town Local culture misused for commerce A lot of fake architecture New construction destroying historic fabric Place for local residents taken by tourists Too much commerce Commodities too expensive Always infrastructure construction which influences my business Not as safe as before Lack of professional knowledge in conservation office Not good, river not as clean as before, however effort put in Only faade conserved by government, not interior Strange that shops for modern things such as clothes not allowed Shop owners 9 1 2 1 3 residents 7 4 tourists Total 16 6 2 1 3
Stakeholders (neutral 1) Conservation output(13)
1 1 3 8 1 2 1 1 1 1 1 1
1 4 8 2 1 1 1 1 1 1
Finance for conservation(3)
Conservation and tourism (positive 3)
Conservation and tourism (negative 2)
Loss of authenticity(11)
1 1 1 1
1 1
2 3 1 1 3 1 2 1 1 2 1 1 2 1
1 1
Commercialisation(2) Gentrification(1) Heritage management(5)
1 1 1 1 1 1
1 1 1 1
Faadism (2) Theme park(5)
123
Local community(13)
to run in the old town Residents not considered, infrastructure for tourists good, but for residents bad Municipal actions to make it beautiful, like a park Locals moving out Not convenient to live in the old town, infrastructure bad Not convenient to live in the old town, too many restrictions, no motor car, no river water usage Living conditions of local people bad Loss of traditional community Little income for the local people Giving up the habit of washing in rivers
3 2 2 3
3 2 2 3
3 1 1 1
3 1 1 1
Opinions about the output of conservation: Conservation work was appreciated by the three groups. The best opinion with the largest numbers was about the government (16) by shop owners and residents. The issue with the second largest number of appreciation was the environment by tourists (8), the next is the good comment about infrastructure construction (6). Opinions about the stakeholders: Conservation is regarded as the governments work. Good comments about conservation pointed out that the government did a lot of work. There was one opinion which said that conservation is the governments work. From the interview summary, conservation decisions are made from the government to the community or only at the level of government. Opinions about the finances for conservation. Tourists are concerned about the finances for conservation. They are willing to pay for it. Opinions about tourism and conservation. People from the three groups gave opinions about the relationship between tourism and conservation.
124
T 4.4: Opinions about conservation and tourism

Positive Negative Tourism on conservation Prevent the destruction of local culture; A way of financial support Tourists damage heritage, not good conservation Conservation on tourism Help to generate tourism for Conservation tourism only works for
The biggest number (13) of the negative opinions are about the local community. Three groups mentioned that tourism has a negative impact on the local community. It can be seen that the local people feel that it is not convenient to live in the old town due to the restriction of motor cars, the restriction of using river water ways, the poor living conditions of ancient houses and the shortage of finances for restoration. The loss of local identity and the traditional lifestyle make the town less attractive. The local people see the large profits in tourism industry, but some of them could not get. Most of the opinions are given by residents, but shop owners and residents are also mentioned. Loss of authenticity is a problem in the old town (11). Three groups mentioned. The mian reason for loss of authenticity is that the new construction (for tourism services) and fake architecture (for tourism attraction) destroy the traditional image of the old town. Places formally used by the local people were occupied by the tourists. Local culture is misused for commercial tourism. The other problems caused by tourism are facadism(2), commercialisation (2), gentrification(1), the theme park phenomena(5). These opinions showed that tourism in Lijiang was highly developed. With an aim to develop tourism, some actions were taken without considering the real value of heritage. Most of these opinions were given by the shop owners (most of them are outsiders) and tourists (outsiders), not the local residents. Other problems in heritage management include a security problem, lack of professional knowledge, infrastructure construction influencing business and river management problems. The analysis of the roles of the three groups. The shop owners gave 19 negative opinions, more than two other groups. The tourists gave the highest number (16) of 125
positive opinions among the three groups. The shop owners gave very critical comments about conservation in Lijiang such as facadism, the theme park phenomena and loss of professional knowledge in restoration. On the issues of authenticity, commercialisation, gentrification, heritage management, facadism and the theme park phenomena, 12 people gave opinions (8 tourists and 6 residents).
Some of the shop owners are artists or professionals in some fields. They not only pointed out problems, but also gave very good, even professional suggestions about conservation of the old town during the interviews. But the local government would not listen to them, according to what they said. They are not satisfied with some municipal actions but have to obey. There are some conflicts between the shop owners and the government.
The local residents have lived in the old town for a long time. They feel the loss of identity and tradition.
The tourists only come for a short time. The town is a fresh image for them. As outsiders, most of them are satisfied with the old town, therefore, they gave the highest number of positive opinions among the three groups.
The shop owners come from outside, and they live in the town for some time (several months to several years). They know about the town and the changes in the town. Their opinions discover the real problems of the town. Tourists pointed out that the problems of loss of authenticity and theme park phenomena which showed they like an authentic town. The theme park phenomena was due to the so-called conservation work done the by local government.
126
5. Findings of the opinions about tourism by three groups T 4.5: Opinions about tourism
Issues Tourism and conservation (3) Tourism industry (positive 25) Opinions Local people realize the value of the town because of tourism Heritage destroyed because of tourism Guest house is cheap and with very good atmosphere Good environment, clean Souvenirs good and various Traditional performance good Good service for tourists, comfortable Site signs not clear, map not clear Traditional performances are not interesting. Food expensive Some fees too high Good cultural experience Tourism overdeveloped A little bit disappointed Good for local economics, income and job opportunities Make the town open to the world, intercultural communication Little income of local people from tourism Disturbance of private life from tourists Damage of the local culture by tourists Too much commerce, not regulated Souvenirs in bad quality, no variety Too much fees(tax) for shops Shops do not have any speciality. Environmental pollution Too many tourists, crowded Commodity prices too high because of tourism Only concentrated in a small area Wrong information from tour guides Propaganda is important Sightseeing instead of cultural tourism Tourism development can not go further because it is limited by the size of town. Hope tourism develops more I like tourists, behave well, polite I do not care if tourists take photo on me Some tourists are not polite Local people are nice (opinion by tourists) Shop owners Resid ents 2 1 10 6 4 3 2 7 2 1 1 1 2 1 7 1 1 1 3 3 4 1 2 12 1 3 4 2 1 Tour ists Total 2 1 10 6 4 3 2 7 2 1 1 1 2 1 19 2 5 1 7 13 10 1 3 7 2 3 1 2 1 1 1 11 6 1 1 1
Tourism industry (negative 11)
Tourism experience (4) Impact of tourism on local community (positive 21) Impact of tourism on local community (negative 13) Commercialisation (27)
8 6 3
Impact of tourism on environment (9) Gentrification(3) Tourism management (5)
5 2 3 1 1 1 1
1 1
Scenario(12)
Local people and tourists (9)
4 6 1 1 1
Tourism and conservation T 4.6: Opinions about tourism and conservation

Positive Negative Tourism on conservation Tourism helps the local people to understand the value of heritage Heritage was destroyed because of tourism
127
Opinions about the tourism industry. All the opinions about the tourism industry were given by the tourists. Positive opinions (25) are more than negative opinions (11). Tourists who were satisfied with guest houses (10), clean environment (6), good souvenirs (4), traditional performances (3) and good services (2). They were not satisfied with interpretation (7), traditional performances (2), food (1) and charging high fees (1). One mentioned that he was disappointed by the old town. Two said that tourism is overdeveloped. Opinions about the impact of tourism on the local community. Tourism is good for the local economics (19) and makes the town open to the world. Residents and shop owners are happy with tourism because of economic profits. The tourist groups almost gave no opinions about the impact of tourism on the local community. Similar to the opinions about conservation, it was mentioned that traditional culture and identity were damaged by tourism and the local people could not get satisfactory profits as return. Commercialization is a big issue mentioned by 27 people, with the biggest number of negative opinions. All three groups mentioned that there are too many commercial activities (13) and bad quality of souvenirs in the old town (10). It is mentioned that tourism has negative impacts on the built environment by 9 people. No tourist mentioned this point. Residents complained about crowds caused by tourism. Tourism brings gentrification (3). Residents complained about the price of the commodities. The interpretation of the tourism industry is bad. On one hand, tourists complained about unclear signs and maps. On the other side, residents and shop owners pointed out that wrong information was given to the tourists by tour guides. The relationship between tourists and residents is basically good. Local people can accept them and they also mentioned that the local people are hospitable.
128
The shop owners and most residents hoped that tourism becomes more prosperous. Only one resident was not optimistic about tourism. The difference of opinions given by the three groups. The tourist group gave many opinions about the commercialization of the town. But they did not give any opinions about the impact on the environment and the local community. The local residents and the shop owners as long term inhabitants highlighted the problems which are linked with their daily life such as the negative impact of tourism on the local community and gentrification.
129
Annex 5: The description of a questionnaire survey by Tongji University in 2002 1. Time of survey
The survey took place in September 2002.
2. Organisation of the survey
The questionnaire survey was organised by Shanghai Tongji Urban Planning and Research Institute in order to get first hand information for the development of the master conservation plan of Lijiang in the year 2002. As a member of the planning team, the author conducted part of the survey work.
About 120 copies of questionnaires for surveys were distributed to residents. Five residential committees in the old town helped to distribute questionnaires to the households and collect them. Ninety-nine valid questionnaires were returned.
There were 49 valid questionnaires for tourist surveys which were returned. The questionnaires were distributed in the streets, restaurants, bars and hotels by the conservation planning team members. They were collected immediately after the questionnaires were filled. 3. Tabulating The results were tabulated by the conservation planning team members and partly changed and edited by the author.
130
Annex 6: Tourists questionnaire survey by Tongji University in 2002 In this survey, the number of valid questionnaires was 49. Tourists included native tourists, foreign tourists, and national tourists. T 6.1: The structure of the questionnaire:
Part one general information of tourists Part two about their trip Part three about the accommodation Part four their experience in Lijiang Part five their opinions about tourism in Lijiang
1. General information about tourists

Category Gender Age Men Woman Below 20 2130 3140 4150 5160 Above 61 Below secondary school Secondary school Technology school Bachelor Master or PHD China Hong Kong, Macau, Taiwan Foreign countries Number of choices 31 18 7 14 7 11 5 5 4 16 14 12 3 35 13 1 Percentage 63% 37% 14% 30% 14% 22% 10% 10% 8% 32% 29% 24% 6% 71% 27% 2%
Education level
Come from
2. How is your trip?

Category Package group Individual For business, conference or visiting friends Yes No One day Two days Three days More than three days One day Two days Three days More than three days Number of choices 36 7 6 37 12 10 22 12 5 6 27 6 10 Percentage 74% 14% 12% 76% 24% 20% 45% 25% 10% 12% 56% 12% 20%
The type of visit Is it the first time to Lijiang Already stayed here for a period of The planned length of stay
131
3. Accommodation
Category Hotels in the new town Hotels in the old town Guest inns in the old town Outside Lijiang Others Arranged by travel agency Arranged by conference organiser From magazine or internet Choose by chance Others Hotels in the new town Hotels in the old town Guest inns in the old town Outside Lijiang Others Star standard equipment and service Experience the atmosphere in the old town Experience the atmosphere of the local family Cheap price Others Number of choices 36 5 2 1 5 34 4 8 2 1 17 18 13 1 0 15 23 19 5 1 Percentage 74% 10% 4% 2% 10% 70% 8% 16% 4% 2% 35% 36% 27% 2% 0 31% 48% 39% 10% 2%
Where do you stay
The reason you choose accommodation
If you can choose, where do you prefer to stay The reason you choose accommodation (Multi-choice)
4. Experience in Lijiang
Where do you know about heritage? (Multi-choice) What attracts you to Lijiang ? (Multi-choice) Category From tour guide From media From friends From brochures about Lijiang Others Beautiful natural environment Well conserved old town Lively water system Quiet and peaceful living atmosphere Fantastic ethnic culture Others Visiting sites Shopping Listening to traditional music Wandering around Visiting local families to know their lifestyle Market square Mu Palace Xinhua street The big stone bridge Others Around market square Xinhua street Around big stone bridge Square near Guanmen Gate Others Around market square Xinhua street Around big stone bridge Near Xianwen land Number of choices 20 32 10 4 0 36 30 31 20 23 0 29 12 19 18 24 29 14 10 22 1 16 11 13 7 2 24 15 1 5 Percentage 30% 49% 15% 6% 0 27% 21% 22% 14% 16% 0 28% 12% 19% 18% 24% 38% 18% 13% 29% 1% 33% 22% 27% 14% 4% 49% 31% 2% 10%
Your activities in the old town (Multi-choice)
The most impressive sites for you in the old town (Multi-choice) Where do you like to eat
Where do you shop
132
Which souvenirs do you like
Near Mu Palace 2 4% Others 2 3% Paintings, silver Jewry, wood carving, Chinese medicine, antique, ethnic costume, traditional cloth, natural food, local food
5. Your opinion about tourism in Lijiang

The most inconveniencing thing in the old town Multi-choice Category To toilets Confused by streets Unclear road sign Shower Plateau climate Too crowded by tourists Extremely commercialized atmosphere Limited variety of visiting sites Limited variety of souvenirs Tourism service Others Yes No 10RMB 20RMB 30RMB 40RMB Others Keep the farm landscape High buildings for hotels Low buildings for hotels Tourism commercial facilities Modern residential area Yes No Local culture Layout and architecture characteristics Enjoy the relaxed life here Go to the neighbouring villages Others Number 19 19 7 2 2 18 30 5 4 4 1 15 34 22 12 2 4 9 37 1 14 4 3 42 7 26 13 25 26 1 Percentage 39% 39% 14% 4% 4% 29% 48% 8% 6% 6% 2% 31% 69% 46% 24% 4% 8% 18% 62% 2% 24% 7% 5% 86% 14% 29% 14% 27% 29% 1%
What are you not satisfied with Multi-choice
Do you mind to be charged for heritage conservation If you do not mind, how much do you prefer to pay?
What do you think about the surrounding area in the old town Multi-choice Will you come here again? If you come again, what do you want to know more? Multi-choice
133
Annex 7: Residents questionnaire survey by Tongji University 2002 In this survey, the number of valid questionnaires was 99. 1. General information of interviewee
Gender Age Categories Man Woman Under 20 2030 3045 4560 Above 60 Naxi minority Han ethnic Bai minority Others Retired Independent Jobless Teacher Others Qiyi Street Wuyi Street Xinhua Street Xinyi Street Guangyi Street Number of choices 76 23 1 1 24 34 39 85 8 5 1 53 19 10 6 11 24 17 20 19 19 percentage 80% 20% 1% 1% 25% 35% 38% 87% 7% 5% 1% 53% 18% 10% 7% 12% 25% 17% 20% 19% 19%
Ethnic
Profession
Street
2. Information about the family

Categories Parents and children Parents, children and grandparents Combined family Couples without child Old people family Single Child and only one parent Others Altogether 06000 RMB 600012000 RMB 1200020000 RMB Above 20000 RMB Altogether Work outside Tourism industry work House rent Local factory work Agriculture Revenue from retirement Others Altogether Number of choices 35 46 1 0 5 0 2 2 91 20 12 15 31 78 4 18 5 19 1 26 22 96 Percentage 38% 51% 1% 0 6% 0 2% 2% 100% 26% 15% 19% 40% 100% 4% 19% 5% 20% 1% 28% 23% 100%
Family members and types
Family total year income
Income resources (Multi choice
134
3. Living surroundings and living standards in the old town

Living space per person Categories 0-20 Square meters 2050 Square meters Above 50 Square meters Total Below 5 years 510 years 1020 years 2050 years Above 50 years total Public Private Rent total Liquid gas Gas Wood Equipped Non-equipped total Equipped Non-equipped total Equipped Non-equipped total Market Department store Food store Hair dressing shop Grocery Post office Repair shop Entertainment facilities Activities centre for the old High school Primary school Hospital In 10 meters Around 50 meters Around 100 meters To far to use total Number of choices 21 49 15 85 5 3 11 36 41 95 5 71 4 80 81 4 26 28 53 81 78 14 92 85 6 91 17 20 19 15 9 13 52 54 29 18 7 27 49 28 6 3 86 Percentage 25% 58% 18% 100% 5% 3% 11% 38% 43% 100% 6% 89% 5% 100% 87% 4% 28% 35% 65% 100% 85% 15% 100% 93% 7% 100% 24% 28% 26% 21% 13% 18% 72% 75% 40% 25% 10% 38% 57% 33% 7% 3% 100%
Period of living in the old town
House ownership
Energy resource (Multi-choice
Sanitary facilities Water supply
Cable TV
Insufficient services (Multi-choice
Distance from the water resource
4. Social relationship between residents

Categories Neighbourhood relationship Good Normal Not good total Much Normal Little total Neighbours Number of choices 67 24 1 92 42 43 4 89 61 Percentage 73% 26% 1% 100% 47% 48% 5% 100% 64%
Neighbourhood interactions
Persons you
135
often meet (Multi-choice Neighbours you contact more Multi-choice
Shopping place Multi-choice Time to shopping place
Do you feel lack of open space for meeting
Colleges Relatives Others Neighbours in the same courtyard Neighbours in the same street Neighbours in the neighbouring blocks Others Market Department store Others In 10 minutes 1030 minutes 30 minutes 1hour Above one hour total Not at all Ok Lack very much total
50 52 15 22 62 38 8 57 27 11 31 45 1 0 77 13 42 24 79
52% 54% 16% 23% 65% 40% 9% 74% 35% 14% 40% 59% 1% 0% 100% 17% 53% 30% 100%
5. Residents and urban conservation

Category Who should do heritage conservation work? Multi-choice How much do you know about heritage conservation? How do you know the value of heritage? Government All the communities total I know very well I know partly I do not know total I know very well I know partly I do not know total Conservation and restoration totally Conservation and restoration partly Partly demolish and reconstruct Reconstruction of the house Others total Protected house Newly-built house Public house Others total If government gives subsidies, I will repair I will restore from time to time by myself It has been restored. I will not restore total Wooden materials are difficult to buy or prices are too high Limited height of the houses Lack of restoration funds Difficult to have sanitary facilities Number of choices 28 84 112 8 75 13 96 9 73 14 96 43 31 26 4 4 96 24 44 1 21 90 8 62 13 1 84 36 8 25 52 Percentage 25% 75% 100% 8% 78% 14% 100% 9% 76% 15% 100% 45% 32% 27% 4% 4% 100% 26% 49% 1% 23% 100% 9.6% 74% 15% 1% 100% 16% 4% 11% 22%
Which way do you prefer traditional houses?
Identification of houses
If your house is on the list of protected buildings, will you restore it?
What is the inconvenience for you to live in the old townMulti-choice
136
Ideal residential area
Motor cars are not allowed to come in Road surface and width are not convenient Too many restrictions Others total The old town The new town Either one total
39 29 36 1 226 58 13 26 97
17% 13% 16% 1% 100% 60% 13% 27% 100%
6. Residents and tourism

The influence of tourism on life Category Very big I do not care No influence total Too many tourists Environment pollution Too much noise Without profit from tourism Possibly being forced to leave the old town Disturbance from tourists coming home or taking photos Others total Yes Very close Far from tourism area total Yes I do not care No total Move away Open a shop or guest house I do not care, as usual total I do not want I do not care I prefer to live in the new town total Yes, they often come I do not care I do not like total Run a shop or guest house Rent the front room Moved away and rent the whole house Work as a tour guide Others total Quite good Only good in tourism season Bad business total Number of choices 9 24 59 92 6 40 10 26 15 0 3 100 27 58 5 90 42 22 5 69 8 26 41 75 37 33 11 81 61 34 3 91 41 13 8 6 7 71 8 20 13 41 Percentage 10% 26% 64% 100% 6% 40% 10% 26% 15% 0% 3% 100% 30% 64% 6% 100% 61% 32% 7% 100% 10% 35% 55% 100% 46% 41% 13% 100% 62% 35% 3% 100% 55% 17% 11% 8% 9% 100% 20% 49% 31% 100%
What are you not satisfied with Multi-choice
Do you live in the tourism area?
Do you prefer that the tourism area extends to the residential area If the tourism area extends to your residence, you will You opinion about giving up living in the old town due to tourism Are you pleased with tourists coming home Multi-choice Your participation in tourism Multi-choice
Tourism income
137
Annex 8: Open questions survey by Tongji University in 2002 1. Residents are satisfied with the following issues. (8 out of 99 gave opinions)
Issues Environment Number 4 Opinions Special landscape with bridge, water and households Bright land and intelligent people Good environment, atmosphere Comparing to the new town, good air, without pollution and noise Historic Inherited heritage With special characteristics Good neighbourhood, community
Historic Community and identity
2 2
2. Residents are not satisfied with the following issues. (23 out of 99 gave opinions)
Issues Poor infrastructure Number 8 Opinions Lack of public toilets. Garbage is poured into water by people causing pollution Sanitary in the old town is bad. Road conditions in residential areas are very bad, without care and difficult to walk on when it rains. Lack of fire facilities Irregular supply of water Bad living conditions, sanitary facilities, without bathrooms Lack a sewage system. Water pollution. Rubbish problem Without street lights in the residential area Insufficient public space for the old people Poor, lack of financial resources to live in the old town Living along the middle river, I am afraid of floods when it rains. Tourism develops fast, but for residents there is no encouragement to help them Without safety in the old town. Thefts and robberies happen As a local person, I have to buy tickets for toilets and tourism sites Residents are willing to restore their own houses, but they lack professional guide, enough materials. And also complicated application procedures. Attract investors at the cost of demolishing the old town Inconveniencing transportation. Lack of commerce for the residents Too many restrictions to live in the old town, for example, the restrictions of modern technology, modern materials. A big number of outsiders have negative impacts on the old town influencing the good customs and culture. They should be controlled. Modern concrete buildings are not harmonious with the town. Many local people move to the new town
Bad living conditions
Heritage management
Inconvenience
Negative impact from outsiders Authenticity Loss of the local community Stakeholders
1 1
Too many stakeholders and conflicts between them
3. Residents opinions about conservation (29 out of 99 gave opinions)

Issues Heritage manage ment Numbe r 8 Opinions The renting activities in the old town should be controlled Government should have punishments and clearly defined conservation regulations and make them publicly known Further management of the old town Hard restrictions should be put on the non urgent cars which enter the old
138
Authentic ity
Local communi ty
Restorati on
Stakehol ders
Tourism and conserva tion Infrastruc ture
town. Heritage education, public awareness of heritage conservation. Necessary laws and regulations. Arise public awareness about fire to renters of houses who often initiate fires Water protection: management of water pollution especially the upper part of the river. Suggestion that big hotels and restaurants along the river should be moved away. Infrastructure improvement projects should ensure quality Government should have strict control on illegal constructions such as concrete material buildings, road occupied construction, courtyard occupied construction and should be equal to everybody. The old town is a world heritage site therefore it belongs to the world, not only Lijiang. It is should be preserved, restored to keep its authentic appearance. Everybody should remember that heritage can not be reborn or rebuilt. Broad conserve to keep the authentic appearance, forbid reconstruction or new construction projects. Original layout of Lijiang is very attractive, but at present some modern improper construction have no harmony with the old town. Government should care more about the life quality of residents. For instance, government should equip street lights, maintain roads and construct sewage systems The market place in the old town has become the place for tourists or people from outside. The old town will lose local people. Subsidies should be given to local residents to encourage them live in the old town Open space should be added to the old town for residents to relax. Government should decrease the fees for house restoration Government should support residents for house restoration. I suggest that government regulates a set of maps for guiding building restoration. And for each case the specified position and terrace should be considered. Meanwhile, the material substituting wood should be considered One courtyard house is suitable for one or two households. This is better for the awareness of residents to restore. Take care of public houses while nobody repairs them and they have a potential for fire There are conflicts between the old town management office and the land management office. Too many stakeholders Organisation of a professional team responsible for the restoration of buildings and provision of the necessary wood materials to ensure the good quality of restoration and reasonable fee charges. The aim is to keep the authenticity of the historic buildings. Increase the quality of the management team Government should not only consider tourism development for the sake of money, but should conserve the integrity and atmosphere of the old town. Large investment projects should apply at the provincial level Put efforts on fire resistance, water resistance,preveting thieves, equip the sewage system in the old town Fire resistance: inconveniences in accessing water at some places should be improved in case of fire happening. For example, in the Lion Hill, there should be water proof against fire In the old town local products shops should be promoted. Shops run by outsiders should not be allowed.
Tourism Commer ce
139
4. Residents opinions about tourism (12 out of 99 gave opinions.)

Issues Tourism management Number 4 Opinions Brochures should be increased for tourism propaganda. Tourism services should be improved. Qualified tourism guides, hotel services. Marketing should be improved so that tourists have a comprehensive understanding of culture in Lijiang. Tourism development should follow the principle of sustainability Government should encourage local people to participate in tourism activities. Otherwise, local identity will be lost or damaged. Efforts should be put in the villages for economic development. Environment protection is important Tourist numbers should be restricted in Jade Dragon Snow Mountain. Otherwise, the snow will melt too fast without recovery. Shop owners should be educated and qualified At market places commercial activities with ethnic and culture identity should be allowed because they give a special landscape. Fees in the old town should be increased. There should be a clear principle about tourism development which is balancing conservation and tourism development, first conservation. Emphasis should not put on short-term profits and economic profits. This is a big problem in Lijiang which is dangerous for the old town.
Local community Environment issues Commerce
Heritage management Tourism and conservation
1 1
5. Tourists opinions about heritage management (15 out of 50 people gave opinions) Question: What is your suggestion about heritage management in Lijiang?
Issues Tourism infrastructure Number 4 Opinions Toilets of a high standard are necessary. Demolishment of shabby public toilets which are not harmonious with environment Infrastructure should be equipped, for example sewage systems. Public facilities and sanitary facilities should have more consideration in heritage conservation. Commercial facilities should be decreased. Everywhere is commerce. Commercial atmosphere should be decreased. Authentic architecture and customs should be conserved. Do not construct fake architecture. Local people should be more educated. Tourist numbers should be restricted. Tourism resource is limited. Environment conservation should be emphasized. Quality of managers should be improved. Local traditional culture should be promoted.
Commercialization
Authenticity Comments about local people Carrying capacity Tourism impact Stakeholders Tourism interpretation
2 1 1 1 1 1
140
Annex 9: Lijiang Model formulated in the Fifth Annual UNESCO Workshop of Culture Heritage Management and Tourism in October 2001, Lijiang
MODEL 1
Models for Fiscal Management for Heritage Conservation, maintenance and development at the Municipal level
141
MODEL 2
Models for involvement and investment by the tourism industry in the sustainability of the culture heritage resource base and supporting infrastructure
142
MODEL 3
Models for community education and skills training leading to employment in heritage conservation and culture tourism sector, with emphasis on opportunities for women and youth
143
MODEL 4
Models for consensus building (conflict resolution) among tourism promoters, Government agencies, property developers, local residents and heritage conservationists
144
Source: UNESCO Bangkok Lijiang Workshop (2002). Internet address: http://www.unescobkk.org/culture/tourism/index.html .Accessed 10/06/2004
References
1. Ashworth, G.J. (1994) From History to Heritage: From Heritage to Identity: In Search of Concepts and Models in Ashworth, G.J. and Larkham, P.J. (eds) 145
Building a New Heritage: Tourism, Culture and Identity in the New Europe. London: Routledge. 2. Ashworth, G.J. and Howard, P. (eds.) (1999) European Heritage Planning and Management. Exeter: Intellect Books. 3. Australian Heritage Commission and CRC for Sustainable Tourism (2001) Successful Tourism at Heritage Places: A Guide for Tourism Operators Heritage Managers and Communities. Canberra: Australian Heritage Commission. 4. Boniface, P. (1995) Managing Quality Cultural Tourism. London: Routledge. 5. Butler, R. W. (1980) The concept of a tourist area cycle of evolution: implications for management of resources, Canadian Geographer, Vol. 24. 1980. 6. Coccossis, H. and Nijkamp, P. (eds.) (1995) Planning for Our Cultural Heritage. Aldershot: Avebury Ashgate Publishing Limited. 7. Commission of the European Communities D.G. XXIII Tourism Unit (1994) Taking Account of Environment in Tourism Development. Luxembourg: Office for Official Publications of the European Communities. 8. De Kadt, E. (ed.) (1980) Tourism: Passport to Development? New York: Oxford University Press. 9. Delafons, J. (1997) Politics and Preservation: A Policy History of the Built Heritage, 1882-1996. London: E & FN Spon. 10. Feilden, Sir B. (1982) Conservation of Historic Buildings. London: Butterworth Scientific. 11. Feilden, Sir B. and Jokilehto, J. (1998) Management Guidelines for World Cultural Heritage Sites. Rome: ICCROM (second edition). 12. Foster, D. (1985) Travel and Tourism Management. London: Macmillan. 13. Fox, M. (1977) The social impact of tourism: a challenge to researchers and planners, in Finney, B. R. and Watson, A. (eds.) A New Kind Sugar: Tourism in the Pacific. Santa Cruz: Center for South Pacific Studies, University of Calfornia. 14. Global Heritage Fund. Lijiang Project. http://www.globalheritagefund.org/. Accessed 10/06/2004. Internet address:
15. Hall, C. M. and McArtbur, S. (1998) Integrated Heritage Management: Principles and Practice. London: The Stationery Office. 16. Hall, C. M. and McArtbur, S. (eds.) (1999) Heritage Management in Australia and New Zealand: the Human Dimension. Melbourne: Oxford University Press. 17. Haywood. K. M. (1991) Can the tourist-area life cycle be made operational? in Medlik, S. (ed.) Managing Tourism. Oxford: Butter worth Heinemann. 146
18. Hein, W. (ed.) (1997) Tourism and Sustainable Development. Hamburg: Deutsches bersee-Institut. 19. Hunter, C. and Green, H. (1996) Tourism and the Environment: A Sustainable Relationship? London: Routledge. 20. Inskeep, E. (1991) Tourism Planning: An Integrated Development Approach. New York: Van Nostrano Reinhold. and Sustainable
21. International Cultural Centre, Krakw, Research Centre of Urban Studies, Architecture and Monument Preservation. (ed.) (1992) Managing Tourism at Historic Cities. Krakw: Cityprof. 22. Lichfield, N. (1988) Economics in Urban Conservation. Cambridge: Cambridge University Press. 23. Lier, H. N. and Taylor, P. D. (eds.) (1993) New Challenges in Recreation and Tourism Planning. Amsterdam: Elsevier Science Publishers. 24. Lijiang Heritage Conservation and Management Committee Office and Lijiang Foreign Affaires Office (eds.) (in Chinese) (2003) UNESCO Conference/ Workshop Culture Heritage Management and Tourism: Models for Cooperation among Stakeholders. Kunming: Yunnan Ethnic Publishing House. 25. Millar, S. (1991) Heritage management for heritage tourism in Medlik, S. (ed.) Managing Tourism. Oxford: Butter worth Heinemann. 26. Medlik, S. (ed.) (1991) Managing Tourism. Oxford: Butterworth-Heinemann Ltd. 27. Messenger, P. M. (ed.) (1999) (2nd edition) The Ethics of Collecting Cultural Poerty: Whose Culture? Whose Property? Albuquerque: University of New Mexico Press.
P P
28. Newby, P.T. (1994) Tourism: support or threat to heritage? in Ashworth, G.J. and Larkham, P.J. (eds.) Building a New Heritage: Tourism, Culture and Identity in the New Europe. London: Routledge. 29. Orbali, A. (2000) Tourists in Historic Towns: Urban Conservation and Heritage Management. London: E & FN Spon. 30. OReilly, A. M. (1991) Tourism carrying capacity in Medlik, S. (ed.) Managing Tourism. Oxford: Butter worth Heinemann. 31. Organisation for Economic Co-operation and Development (OECO) (1980) The Impact of Tourism on the Environment: General Report. Paris: OECO. 32. Page, S. (1995) Urban Tourism. London: Routledge.
147
33. Pearson, M. and Sullivan, S. (1995) Looking After Heritage Places: The Basics of Heritage Planning for Managers, Landowners and Administrators. Carlton: Melbourne University Press. 34. Peckham, R. S. (ed.) (2003) Rethinking Heritage: Cultures and Politics in Europe. London: I.B.Tauris. 35. Ruan, Y. S. Wang, J. H. and Wang, L. (in Chinese) (1999) Theories and practices of urban conservation of historic and cultural cities. Shanghai: Tongji Publishing House. 36. Shanghai Tongji Urban Planning and Research Institute. (unpublished, in Chinese) (2003) The Conservation Master Plan of the Lijiang Old Town. 37. Shao, Y. (unpublished, in Chinese) (2003) Road of Revitalization: Urban Heritage Conservation and Development in China. 38. Stovel, H. (1998) Risk Preparedness: A Management Manual for World Cultural Heritage. Rome: ICCROM. 39. Tunbridge, J.E. (1994) Whose Heritage? Global Problem, European Nightmare in Ashworth, G.J. and Larkham, P.J. (eds) Building a New Heritage: Tourism, Culture and Identity in the New Europe. London: Routledge. 40. UNESCO (1972) Convention Concerning the Protection of the World Cultural and National Heritage. 41. UNESCO Bangkok, (2002) Lijiang Workshop. Internet address: http://www.unescobkk.org/culture/tourism/index.html. Accessed 10/06/2004.
H H
42. Williams, A. M. and Shaw, G. (eds.) (1998) Tourism and Economic Development: European Experiences. Chichester: Wiley & Sons Ltd. 43. World Bank (2001) Cultural Heritage and Development: A Framework for Action in the Middle East and North Africa. Washington, D.C.: The World Bank, Middle East and North Africa Region. 44. Xu, G. (1999) Tourism and Local Economic Development in China: Case Studies of Guilin, Suzhou and Beidaihe. Surrey: Curzon Press. 45. Zhang, G. R. (2003) Chinas Tourism Since 1978: Policies, Experiences, and Lessons Learned in Alan, A. L. Lawrence, Y. John, A. and Zhang, G. (eds) Tourism in China. Binghamton: The Haworth Hospitality Press. 46. Zhu, L. W. (in Chinese) (1985) Vernacular Architecture of Naxi Minority in Yunnan. Kunming: Yunnan Science and Technology Publishing House.
148

Fan Li

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Fan Li

Загружено:

Авторское право:

Доступные форматы

Brandenburg University of Technology Cottbus, Germany Faculty of Architecture, Civil Engineering and Urban Planning

World Heritage Studies

Master of Arts (M.A.) in World Heritage Studies

This is to certify that the Master Thesis prepared by Fan Li

Approved by: Professor Hans Detlef Kammeier Professor Volker Martin

Professor Hans Detlef Kammeier

Professor Volker Martin

The main content of the thesis includes:

The defined scope of the study is urban heritage in China.

1.5 Justification about the year 1994

Figure 1.1: Structure of the thesis

Past and Present: 1994-2004

Literature about heritage management

Considering different stakeholders

Source: Authors summary.

Chapter 2: Concept framework

2.2 Present situation of urban heritage in China

2.2.1 The types of urban heritage in China

2.3 Tourism development in China

Table 2.1: The Changing Model of Tourism Policies in China

International Tourism Domestic Tourism

Source: Xu. 1999, p. 19

Table 2.2: The Tourism Policy in China in 1984

2.3.2 Impact of tourism on urban heritage

The generation of income for the local economy

The creation of new employment opportunities for the city locality

In contrast, the costs of tourism to a host city include:

Table 2.3: The impact of tourism on the urban environment

2.4 The way forward: the future of urban heritage in China

2.4.1 Weaknesses and threats

2.4.2 Strengths and opportunities

Chapter 3: Urban conservation in Lijiang

3.1.1 The location and population size of Lijiang City

3.1.2 Urban development in Lijiang: from a trade centre to a tourism town

3.1.4 Vernacular architecture in Lijiang

3.2 Urban conservation in Lijiang

3.2.1 Urban conservation in Lijiang before 1994

Foundation of management office

Table 3.2: Policies dealing with heritage conservation in Lijiang

3.3 Finance for urban conservation in Lijiang 24

3.3.1 International fund: Global Heritage Fund (GHF)

3.3.3 Bank loans

Table 3.3: Fees from the ATCF in Lijiang

3.3.5 Private financial resources

3.3.6 The summary of different fund sources

Not stable, unsustainable

Complicated procedure for application time consuming, difficult to get

Limited Unlimited Limited Limited Very limited

Sustainable Very unsustainable Very sustainable Sustainable Sustainable

House owners Source: Authors summary.

Figure 3.1: The proportion of different fund sources

Bank loans 74%

Source: Edited by author.

3.5 Overview and recommendations about heritage conservation in Lijiang

3.5.2 The present situation: challenges and opportunities

3.5.3 Comparing the ATCF and the entrance fee

3.5.4 Doing as little as possible and as much as necessary

Chapter 4: Tourism in Lijiang

4.1.1 Policies and projects dealing with tourism development in Lijiang

tourism planning conference was held

Reconstruction policy due to earthquake happened in Lijiang

Lijiang city Government

UNESCO Yunnan Provincial Government Central Government