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  • 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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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.

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  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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).

    3

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    Figure 1.1: Structure of the thesis

    Chapter 3: Conservation assessment

    Chapter 4: Tourism assessment

    Chpater 5: Management assessment

    Chapter 7: Recommendations for heritage management

    Past and Present: 1994-2004

    Chapter 2: Background about urban heritage in China

    Referring to other urban heritage in China

    Chapter 6: Scenarios for the old town

    Literature about heritage management

    Chapter 1: Introduction

    Future

    Considering different stakeholders

    Source: Authors summary.

    4

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    5

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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.

    6

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    8

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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.

    9

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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 and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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.

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  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    Table 2.1: The Changing Model of Tourism Policies in China

    1950s to mid-1970s Since the early 1980s Motivation and Goals

    Political considerations Government reception Without cost-benefit analysis

    An economic sector Foreign exchange Profit-making drive Job creation

    Mechanism Centralized planning State monopoly The state as the sole investor

    Market mechanism Diversification of ownership Local participation

    International Tourism

    Guests and visitors from other socialist countries Foreigners from all over the world Compatriots and overseas Chinese

    Domestic Tourism Limited business travel Controlled travel demand

    Emerging mass domestic tourism Diversified travel motives

    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 From To Investment Orientation Reception facilities Both resource development and

    reception facilities Tourism Promotion International tourism Both international and domestic

    tourism Investors in Infrastructure Development

    The state as the major investor The state, local governments, collectives, and private individuals; use of foreign capital

    Enterprise Management Government agencies Independent firms Source: Xu. 1994, p.25

    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:

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  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    The generation of income for the local economy The creation of new employment opportunities for the city Improvements to the structure and balance of economic activities within the locality Encouraging entrepreneurial activity

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

    The potential for economic overdependence on one particular form of activity Inflationary costs in the local economy as new consumers enter the area and potential increases in land prices as the tourism development cycle

    commences. A growing dependence on imported rather than locally produced goods, services and labour as the development of facilities and infrastructure

    proceeds Seasonality in the consumption and production of tourism services leading to limited returns on investment Leakages of tourism expenditure from the local economy Additional costs for city authorities

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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 so-

    called 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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    Name of office Authorization Work field

    Before 1998

    City construction bureau The Lijiang City government

    All the construction activities in the city, no conservation effort

    1998 Foundation of management office The old town government

    Sanitary work in the old town

    1999 Foundation of the security and fire brigade

    The old town government

    Safety and fire emergency in the old town

    2000 Foundation of management committee

    The old town government

    General management in the old town

    2001 Further development of the security and fire brigade

    The Lijiang City government

    Safety and fire emergency in the old town

    2002 Further development of the management committee: Heritage Conservation and Management Committee (HCMC)

    The Lijiang city government

    Conservation and management in the old town

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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 Conservation policy Authorities significance 1951 Development of the new town, conservation of the old town The old town

    government significant decision

    1983 Identification: the conservation of the old town in the Lijiang county master plan

    The old town government

    Identification

    Application for enlistment as a world heritage site

    Provincial government

    Significant, turning point

    1994

    Lijiang conservation and management regulations Provincial government

    Further development

    Lijiang historic town conservation master plan Provincial government

    The first conservation plan

    Lijiang old town fire control safety regulations The old town government

    Infrastructure

    1995

    The enlistment of 140 important courtyard households The old town government

    Traditional architecture

    1997 The restoration project due to earthquake The city government

    Significant

    2001 House and business management regulations in the old town

    The old town government

    Society intervention

    2001 The UNESO workshop: Lijiang Model concerning conservation and tourism development, held in Lijiang

    The city government

    Promotion for conservation

    2002 Foundation of the HCMC The city government

    Organisation significance

    2002 The development of the Lijiang Master Conservation Plan the HCMC Planning significance

    Permission regulations for shop running the HCMC Tourism controlling

    Development of Naxi language curriculum in primary schools. Grade one to grade four, two classes every week

    peoples congress of the old town

    Considering local culture

    Provide free houses to for local cultural presentations the HCMC Considering local culture

    2003

    Establishment of resident service centre to help local residents for transportation

    the HCMC Considering about local people

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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 year 2003 Total income RMB 9,500,000 RMB 44,620,000 RMB 54,540,000

    Source: Authors summary, based on the HCMC work report.

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    Fund Amount

    Sustainability Feasibility

    International fund

    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

    Very limited

    Not stable, unsustainable

    Complicated procedure for

    application time

    consuming, difficult to get

    Government revenue

    Efficient, effect depending on the quality of decisions Limited Sustainable

    More and more easy to

    get

    Bank loan Efficient, effect depending on the quality of decisions

    UnlimitedVery

    unsustainable Easy to get

    Public fund

    ATCF Efficient, effect depending on the quality of decisions

    Limited Very

    sustainable Easy to get

    Real estate developers

    Efficient, but normally ineffective due to the feature of investment activities

    Limited Sustainable Easy to get Private Fund

    House owners

    Efficient and effective Very limited

    Sustainable Easy to get

    Source: Authors summary.

    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 Bank loan ATCF Amount (RMB) 1300000 200000 300000000 108660000

    Source: Authors summary, based on the HCMC work report.

    29

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    Figure 3.1: The proportion of different fund sources

    ATCF26%

    Bank loans74%

    Government revenue

    0%

    International Fund0%

    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

    egarding conservation, they mentioned that the new constructions damaged the old

    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.

    R

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    egative comments, more than any of the other two groups. Shop owners gave very

    park

    henomena and lack of professionalism in restoration. On the issues of authenticity,

    ople gave opinions (In the other two groups, 8 tourists and 6

    sidents gave their opinions). Some of the shop owners interviewed were artists or

    .5 Overview and recommendations about heritage conservation in Lijiang

    he decision of developing the new town in 1951 was made by the local government

    e other cities in China got rid of the ancient city

    alls and reconstructed the old town.

    n

    critical comments about conservation in Lijiang such as facadism, the theme

    p

    commercialisation, gentrification, heritage management, facadism and the theme

    park phenomena, 12 pe

    re

    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

    3.5.1 Lijiangs fortunate history: An important government decision which determined

    the fate of the old town

    T

    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 th

    w

    31

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    With the construction of the new town, the old town was abandoned by the

    and culture due its recent tourist popularity and poor planning decisions.

    ince the foundation of the HCMC, a lot of effort has been put in heritage

    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 to

    S

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    The e

    oth f

    collection centre can have certain control on the number of the tourists who visit the

    Sn

    urist numbers. Tourists are extremely welcomed by the local authorities although

    turbed. Local people still do their pottery in the streets. At the same

    me, income from entrance fees is used to benefit the restoration of historic sites in

    g entrance fees is a good

    echanism to control tourist numbers. From a short-term perspective, the control of

    t numbers is a sustainable way for tourism development.

    nlimited mass tourism can only cheapen the site and lead to the deterioration of the

    .5.4 Doing as little as possible and as much as necessary

    he biggest success in heritage conservation in Lijiang is the awareness of the value

    f heritage by all groups in society, especially decision-makers. Since they have

    owerful intervention in the old town, what they do has a strong impact in the old

    wn. In that case, the effort they put in determines the future of the old town. Once

    ecision makers realize the value of heritage, they do as much as possible though

    e decisions for heritage conservation may be unnecessary or improper. For

    g constructed or those which planned to be

    onstructed for tourism facilities around the old town. Once restoration began, the

    ATCF can help to collect fees for heritage conservation, but it does not have th

    er unction as the entrance fee has to avoid overcrowding. The location of the fee

    ow Mountain, but concerning the old town, it does not have any power to control

    to

    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 dis

    ti

    the old town. With the increase in tourist numbers, collectin

    m

    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 touris

    U

    environment.

    3

    T

    o

    p

    to

    d

    th

    instance, big scale projects are bein

    c

    authenticity disappeared.

    33

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    The town developed by itself. The historic fabric was formed by itself. To keep its

    uthenticity, minimum intervention should be applied.

    .1.1 Policies and projects dealing with tourism development in Lijiang

    T m n Lij w s in Ch ee

    2.3.1). t ev m old

    to o f e pro in d its sm

    development. These polic ly ects im ism

    development such as infrastructure c

    g n dev uc ure f 94,

    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.

    A t Lijian ad o ay c nstruction. Until now,

    tourists come mainly by air while the local people take cheap and time-consuming

    highwa ay on . The following table shows

    the important policies connected to the mass tourism development.

    urism in Lijiang

    Year Policy Authorization Significance on tourism Projects

    a

    Chapter 4: Tourism in Lijiang

    4.1 History of tourism development in Lijiang

    4

    ouris development i

    The national policy

    iang be

    has a grea

    gan hen economic reform

    impact on tourism d

    ina began (S

    ent. For thee

    wn f Lijiang, policies rom th

    ies direct

    vincial level determ

    lead to the proj

    onstruction. When the Yunnan provincial

    e mass touri

    r ing at tou

    over ment decided to elop tourism and construct infrastr t acilities in 19

    irpor construction in g is ahe f railway and highw o

    y transport. Railw constructi has just begun

    lop

    a

    Table 4.1: Important policies and projects dealing with to

    1992 Lijiang Yulong snow mountain is authorized as the provincial tourism development area.

    Yunnan Provincial Government

    Symbolized the beginning of tourism development in Lijiang

    Improvement of the telephone system

    1994 the Southwest Yunnan Yunnan Identification of the tourism

    Construction of

    34

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    35

    tourism planning conference was held

    Provincial Government

    industry in Lijiang; The beginning of the tourism boom. Significant

    Lijiang airport; Two highway constructions

    1996 Reconstruction policy due to earthquake happened in Lijiang

    Lijiang city Government

    Earthquake made Lijiang well-known, reconstruction brought reputation. For the first time during that year the tourism number went over 1 million.

    A big reconstruction project Construction of cable-cars in snow mountains

    1997 Inscription of world heritage site

    UNESCO Fame for Lijiang, attract more tourists

    1999 Sub-host of World Expo together with Kunming (Capital city of Yunnan Province)

    Yunnan Provincial Government

    Cultural activity as a means to promote tourism

    2003 The municipal territory reform for tourism

    Central Government

    Politics as a means to promote tourism

    Source: Authors summary based on officers interviews.

    003) Figure 4.1: The increasing tourist numbers (1990-2

    The Increasing Tourist Numbers (1990-2003)

    98 130 163 186217

    841

    1105

    1733

    2013

    2600

    2900

    32203380

    3010

    500

    1000

    1500

    2000

    2500

    3000

    3500

    Tou

    rist N

    um

    ber

    (Un

    it: th

    ou

    san

    d)

    0

    4000

    1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

    Year

    Source: The Lijiang yearbooks 1990-2003, edited by author

    mediately after the policy was set up to

    : 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 im

    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)

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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.

    ined unchanged. Walls between the pillars fell down while the

    ooden structures remained. With the help from native and overseas organizations,

    toration of the old

    wn in the media: newspapers, TVs and radios. These reports included the

    eople know about Lijiang. There was a big

    oom in that year in spite of earthquake.

    of December 1997, while tourist numbers in 1998 did not

    crease significantly.

    he increase in numbers in 1999 was due to the co-hosting of the World Expo

    nomic, social and cultural impact

    ironmental impact. Since the scope of the research is about urban built

    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 rema

    w

    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 res

    to

    information about the old town. More p

    b

    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

    in

    T

    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 eco

    and env

    36

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    re bring money.

    heir consumption leads to a high price level in daily commodities. Some residents

    efore. For example,

    the price of a cabbage is 2RMB/kg. This is the sam as

    Shanghai, but their income is much lower (about one fifth) than in Shanghai. Most

    lo er go to r bars where They go to the bars in

    e prices are lower. We local people go to Qixing Street for

    ntertainment not far away from the old town. It is a new street. There are many bars

    e price difference in the old town and the new town

    Inside the old town One street away from the old town

    of tourism, and 50,000 people indirectly involved.

    The other economic impact is gentrification. Tourists who come he

    T

    complained that the price of vegetable was much higher than b

    e as the price in big cities such

    cal people nev restaurants o tourists go.

    the new town where th

    e

    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: Th

    Internet bar 5-10 RMB/hour 2 RMB/hour Beer 10 RMB/bottle 5 RMB/bottle Restaurant Food 10 RMB/plate 7 RMB/plate Strawberry 12 RMB/kg 6 RMB/kg

    Source: Authors summary.

    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

  • Tourism and urban conservation: Heritage management in the old town of Lijiang, China, 1994-2004, and future directions

    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

    e old town a good image. The toilets for local residents are not considered by local

    600 RMB every month. With this money,

    e house owner can get another house in the new town at a price of 300-400 RMB

    ve in the old town because most of them are not registered. According to the HCMC

    23 in the year 2002,

    hich is almost 1/3 of the local residents.

    and more attention to traditional Naxi culture

    hen the local people had gradually forgotten it. The souvenirs with Naxi pictograph

    local government realized that

    hildren should be educated about traditional culture. From the 1st of September

    th

    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 whe