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Heritage as a tourism commodity has raised expectations about the profits that it can potentially bring. Lijiang Ancient Town, since acquiring World Heritage status in 1997, has become increasingly dependent on state support and private enterprise to maximize this potential. The implication of rapid tourism development is the marginalization of indigenous Naxi as their homes became converted into guesthouses, souvenir shops and other facilities for tourist consumption. State discourse on tourism development as the means to achieve economic development and growth is examined and Naxi reaction to the threat of touristic commodification discussed. Two important spaces, the town square and a food outlet at a major thoroughfare, are used to highlight Naxi efforts to reclaim touristic spaces for everyday activities and as a symbolic representational space of their own cultural identity. In the final analysis, Lijiang's landscape is the result of an interplay between the state, private enterprise and local forces wherein the heterogeneous discourses from each of these are integrated by the Naxi as they go about life in Lijiang Ancient Town.
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