Shuhe Old Town --A Case Study of Private- Public Sector Partnership in Poverty Reduction in China

----Dingye Tourism Development Co. Ltd in Shuhe Old Town, Lijiang, Yunnan Province, PRC. The Conservation and Development Project in Shuhe Old Town, Lijiang I. Project History • Project name: The conservation and development project in Shuhe Old Town, Lijiang • Project site: Shuhe old town of Lijiang, Yunnan Province, PRC. The old town is located at 4km northwest to the Lijiang City and about 30 km. from Lijiang Airport • Surrounding attractions: - Lijiang City and its World Heritage Listed Old Town - Yulong Snow Mountain - Three Parallel Rivers --World Natural Heritage Area - Ancient Tea and Horse Trading Route • Project ownership: The Lijiang Dingye Co. of Kunming Dingye Group (a joint-stock company run by the local people) • Land tenure: 107mu (acre) has of state-owned land zoned for historic conservation purposes • Project Type: A tourism development project with the conservation of world cultural heritage as its theme The conservation and development project in Shuhe old town, Lijiang

Progress of the project: • In March 2003, investment agreement signed with old town district government of Lijiang municipality • In May 2003, project launched and opened formally to the public on 1st May 2004. • In 2005, Shuhe scenic spot was certified by ISO9000 environment system and ISO14000 quality system • In 2005, Shuhe wins the title of the most famous town for its highly harmonious environment of man and nature in the competition of the ten most famous towns of China • In 2005, Shuhe Old Town is graded as an AAAA level scenic spot

Tourist Statistics (person-time): • In 2005, Shuhe Old Town received 1.14 million tourists • In 2006, 1.9 million • In 2007, 2.02 million The conservation and development project in Shuhe old town, Lijiang The conservation and development project in Shuhe old town, Lijiang Ⅱ. Project Background

• Tourism is a pillar industry in Yunnan Province • UNESCO guidelines on protection and commercial use • Lijiang as the centre of the Great Shangri-la Ecotourism Circle • Shuhe Old Town exhibits the Ancient Tea and Horse Trading Route culture, traditional farming culture, Naxi ethnic culture and ecological environment • Dingye Co. as prepared and implemented a master plan that: - adheres to the conservation of the original style, culture and ecological condition of the old town within the conservation zone - provides for the development of a tourism development zone on expropriated land adjacent to the conservation zone for development of inns, restaurants and shops - provided medium and small investors with legal property rights. • Between 2003 and 2004, Dingye Co. invested RMB37 million of which RMB25 million has already been recouped. The conservation and development project in Shuhe old town, Lijiang

Naxi Culture ————The original path of ancient town The conservation and development project in Shuhe old town, Lijiang

The Ancient Tea-Horse Culture —QingLong Bridge Agricultural History —A famous relic on the “Ancient Tea-Horse Route” — Grain shelf

Agricultural History — Countryside Scenery The conservation and development project in Shuhe old town, Lijiang

Biological Values Shuhe Water Channel — The Natural Refrigerator — Jiuding Dragon Pool in Shuhe The conservation and development project in Shuhe old town, Lijiang III. Participation of Local Residents

As stockholders in the company As beneficiaries from improved road access, electrification, telecommunications, and sanitation infrastructure Priority in construction contracts and tectonic material supplies for infrastructure and tourism facilities Priority in handicraft, fruit, vegetable, and meat supplies to tourism outlets Priority of employment in the company and tourism outlets Compensation paid to residents The conservation and development project in Shuhe old town, Lijiang

Economic Benefits:

More than 150 local residents obtain employment in the company

Local merchants employ more than 300 local people

80 buses, 100 owners of horses and 30 peddlers profit from local tourism industry

More than 200 local houses are rented generating RMB750,000 yuan in income per year

In 2002, average resident has an income of RMB100 yuan per year, by 2005, this increased to 500 yuan

Poverty reduced substantially The conservation and development project in Shuhe old town, Lijiang

Community Residents Participate in Tourism

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Engraving

Spinning Bamboo weaving The conservation and development project in Shuhe old town, Lijiang IV. The co-operation with local community

General plan discussed and agreed with local community leaders

Detailed design documents and investment program for Shuhe are examined and approved by local government

Local government deducts a 15% percentage from entrance fees for community construction programs

Local government also derives revenue from taxing local business entities. The conservation and development project in Shuhe old town, Lijiang

The project has contributed to the restoration of:

traditional catering services

traditional leather and textile industry

planting, farming and processing industry

Naxi ancient music performance groups and Dongba culture and folk art

The conservation and development project in Shuhe old town, Lijiang

Naxi Ancient Music Team The conservation and development project in Shuhe old town, Lijiang

A scholarship program has been established to help local students make the most of the opportunities provided by the project The conservation and development project in Shuhe old town, Lijiang V. Key Experiences and Lessons

1. Improving understanding of the benefits that projects such as this can bring to local residents especially where land expropriation is involved

2. Delivering on promises and developing trust of local communities through ownership and participation is the basis for long-term co-operation

3. The problem of equity between and within village communities The conservation and development project in Shuhe old town, Lijiang

VI. The Tourist Facilities Encouraged in Shuhe Old Town

1. Cultural industries: fixed large-scale performances; the base of shooting films and teleplays; all kinds of museums; entertainment programs; calligraphy and painting associations; the programs of traditional culture conservation and demonstration etc. 2. Tourists’ commodities development 3. Hospitality facilities and services 4. Malls of tourists’ commodities 5. Top grade villas for holidays 6. Eco-friendly programs The conservation and development project in Shuhe old town, Lijiang

Traditional Performance Shows The conservation and development project in Shuhe old town, Lijiang

TV-film based Project The conservation and development project in Shuhe old town, Lijiang

Traditional Culture Conservation

Dongba Word– a kind of very old pictograph

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VII. The programs not supported in Shuhe old town

1. Modern industry programs;

2. Ordinary commercial houses development;

3. All contaminative processing items;

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