Descent into Jiuzhaigou, China
Last week was tough for the markets. This morning, futures are pointing higher and generally speaking, the markets are looking to stabilize. At least in the short term. Like I said last week, when the markets are all over the place, I like to turn my attention overseas. So I’ve decided to start the week off by writing more about my experiences here on the ground in China where I’ve been for the last two weeks.
On much of this trip, I’ve been writing about companies based in China and the investment potential in this amazing country. Subscribers to SmallCapInvestor PRO have access to my portfolio of favorite small-cap companies. Many, like China Natural Gas (Nymex:CHNG) are located in China.
Today I’m writing about a remote area of Western China where the main business is tourism. This growing industry in China is a sign of a rising standard of living. The fact that many Chinese from the developed coastal cities are venturing inland to explore their own country is a positive sign of economic growth.
A few days ago, my wife Carrie and I arrived in Jiuzhaigou, China. The elevation at the airport is 11,500 feet, and on final descent from Chengdu we were able to see snow covered mountain tops. We landed at the region’s airport, a two mile long man-made plateau. To say it was interesting would certainly be an
understatement
Descent into Jiuzhaigou, China
This area of western China is home to great numbers of Tibetan people, many of whom live in small villages. We aren't far from Tibet, but the red Chinese flag definitely flies.
I haven't seen a place like this in the continental U.S. I imagine it may be similar to Alaska, or remote regions in the U.S. and Canadian Rocky Mountains. It is largely undeveloped and native people live off the land.
There is certainly tourism in Jiuzhaigou, with a few "five star" hotels. I've found that five star in China equals 3.5 stars in the U.S. Instead of choosing the Inter-Continental or Sheraton, we opted for a local, off the beaten path option.
A 1.5 hour drive brought us to a Tibetan village where we have arranged a home stay with a local family. Our flight delay meant we arrived after sunset, and our family had dinner waiting: potatoes with cilantro and salt, roast yak, sauted mushrooms, tea with yak butter, and honey wine. After a long day of travel we were starved. We sat and consumed a huge amount of the deliciously simple home-cooked meal.
The home-stay was a unique experience. We stayed with a brother and sister who own a restaurant in town and have a guest house with three rooms that are rented to tourists like Carrie and me; those who prefer the local option. They were great hosts. Only the sister spoke English, but both she and her brother spoke Mandarin. Their mother only spoke Tibetan. Despite the language barrier, we were able to communicate through my brother's translation and a constant game of charades.
The home is in a beautiful setting on a hillside, with views of the village and mountains. My one complaint was the bed. It was a simple wood frame made of with plywood and cardboard, and had only a few blankets for comfort. Our window had no glass, only a sheet to keep out the cold air. The night temperatures were in the 40’s. Night one was tough, and my back was aching in the morning.
Our first full day was spent at Jiuzhaigou Park. It was similar to a national park in the Western U.S. The landscape is dramatic, with low valleys with rushing streams giving way to soaring, snow capped mountain peaks. While there are efforts to develop international tourism in the area, this national park is dominated by domestic tourists who have traveled to the park to experience nature and view the fall foliage.
The entrance to the park is at roughly 8,000 feet, and buses transport tourists along well paved roads, stopping frequently for photo opportunities or hiking trains. The trail network is extensive, and in five hours of hiking, we covered only a small portion of the terrain.
After a full day at the park, we enjoyed dinner at our host’s restaurant in town, and were joined by one of my brother’s friends who is from Ireland. He is working for the park trying to help grow international tourism to the area.
Dinner was impressive once again, with another meal of Yak, lamb, fried rice, steamed greens with garlic and chili, and mushrooms.
A day of hiking and a few good beers helped contribute to a better sleep the second night, despite the uncomfortable bed.
