Lijiang is currently one of the preferred destinations among Chinese tourists. For this reason Lijiang should definitely be avoided during major Chinese holidays, when thousands of visitors will fill up the streets in the center. But note that the old town will also be overcrowded the rest of the year.
The old town of Lijiang is so popular among Chinese, that local authorities are building new "old" houses next to the limits of the old town in order to make room for local tourists.
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