Wuzhen, a popular water town southwest of Shanghai, has tried to recreate a bygone era of life along the Grand Canal without the tacky tourism seen in so many ancient water towns in the region.
The strategy seems to have paid off. Wuzhen has become the most popular water town destination in Zhejiang Province. It hosts about 6 million tourists a year, 300,000 of them from overseas. Tourism brings in 690 million yuan (US$112 million) a year for the town.
Wuzhen is a real reinvention of the past. Once glorious, the fortunes of the 1,300-year-old town faded over centuries. Young people fled for greener pastures, leaving their downtrodden hometown an elderly population living along silted-up canals in dilapidated houses.
The project to reconstruct the old part of town, called Xizha, to look like it did 100 years ago was undertaken by the Wuzhen Tourism Co Ltd at a cost of 1.3 billion yuan.
The company, originally affiliated to the city government of Tongxiang, later became a joint venture run by the government, China CYTS Tours Holding Co Ltd and IDG Capital Partners.
Marks of modernization
Its head and guiding light was Chen Xianghong, a former township Party chief and director of the Tongxiang government office.
The reconstruction work, which involved the relocation of nearly all households in Xizha, took about four years, starting from 2003.
Marks of modernization, like a five-story department store and alloy-framed windows, were removed. Nearby paper mills and leather factories were relocated.
Roads were repaved and old houses repaired. Stone bridges, temples and workshops that had disappeared over time were rebuilt according to town records. Where possible, renovation work used old materials. Scenic old bridges from neighboring towns were transplanted to Wuzhen.
Rows of shabby houses were turned into charming bed and breakfasts, and boutique hotels. The decor may be vintage, but the amenities inside are discreetly modern. Outside units of air conditioners have been enclosed in antique-looking boxes, and electric and telecommunication lines buried. Wi-Fi covers the whole town.
The drainage system has separate pipes for sewage and rainwater for better processing and recycling. Residents are banned from washing rags and mops in the canals. Potable water is available in every guest room and every 100 meters on the street.
Once the work was completed, the tourism company began selecting residents who could return to Xizha. Retirees were given priority. Those willing to open small businesses in keeping with the town's new image were also welcomed back.
Gao Cairong, a 44-year-old Wuzhen native, was one of the first to jump at the chance to become a small businessman in the remodeled town. A former factory worker, he now operates 13 guest rooms in two bed and breakfasts, a business he began in May 2007.
"Being a landlord here, you can get stable proceeds up to 200,000 yuan a year," Gao said.
"I would have to work for someone else for three years to earn as much money as I do here in a year."
Under conditions set by the tourism company, renovated houses were leased to landlords like Gao rent-free. The landlords are required to remit most of their room fees to the company, but are allowed to keep profits from dining facilities. To prevent price gouging, the company sets standardized menus, but every B&B may offer special local dishes if approved by the company.
Handpicked shopkeepers
Today, Xizha has 44 B&B landlords, who have to undergo annual inspections. The businesses are thriving.
"Today's tourists want classic beauty coupled with modern conveniences," Gao said of the local accommodation.
On the retail side, the company carefully handpicked shopkeepers who could sell goods to tourists.
To avoid over-commercialization and excessive duplication, the company allows only one store of a kind to open in Xizha.
