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During China’s three-day Dragon Boat Festival holiday starting on June 9， Mt. Mogan in Deqing County， northern Zhejiang Province， became a hot spot for vacationers from across the country. Incoming highways became jammed with vehicles from near and far， creating a scene reminiscent of downtown Shanghai’s elevated highways at rush hour. Urban residents braved the crowds to experience the exotic flavors of a village outside Deqing， which is now a far cry from a town of rustic farmhouses.
What Happened？
It all started about nine years ago. In 2007， a South African named Grant Horsfield discovered a group of mostly abandoned dwellings at the foot of Mt. Mogan that was once the village of Sanjiuwu. He rented several buildings and refurbished them. He called his new lodge“Naked Retreats，” and the accomodation soon became popular with Horsfield’s circle of friends. The small village soon became one of the most popular destinations for foreign investments， and Horsfield started seeing potential profits in the forests of Mt. Mogan.
October 2011 brought the launch of Horsfield’s follow-up project， “Naked Stables，” which was built near Sanjiuwu at a cost of about 200 million yuan. Before long， it was hard to book a humble little earthen abode for 2，000 or 3，000 yuan per night – never mind the 10，000 yuan per night for a villa. Contrasting rural inns operated by farmers， the locals call such homestays “exotic-flavored inns” because they were funded and operated by foreigners， attracting foreign guests and travelers from major cities.
The great potential has attracted investors from more than 10 countries including France， Britain， Belgium， and South Korea. Chinese businessmen have joined these ambitious foreigners in moving to the mountains to open “exotic inns，” and increasing numbers of visitors from nearby cities of Hangzhou and Shanghai， and from Jiangsu Province， began flowing in.
Today， over 70 high-end inns including Naked Stables and Le Passage Mohkan Shan are open in addition to over 200 homestays catering to a wide range of travelers.
Occasionally， local villagers complain about the loss of tranquility， but it is quick- ly forgotten with a glance of the improved public facilities such as highways， appreciating property values， popular farm products， and better job opportunities. Previously， the mountainous area down here was plagued by inconvenient transportation. In winter， the area was largely inaccessible to the rest of the world. Farmers survived on what they could find in mountains – nothing but tea and moso bamboo， which are hardly worth the labor to cultivate.
In recent years， however， as the business pattern established by “exotic inns” grows， great changes have taken place in the mountains. Farmers rent their houses to businessmen from elsewhere， which can sometimes fetch a lump single million-yuan payment for a 30-year lease. That sum can buy a three-room house elsewhere in the county. Refurbished rooms go for more than 1，000 yuan a night， and farmwives who excel at cooking are hired at inns.
Rediscovery of Rural Value
The current situation seems to have happened by chance， but places like the Naked Retreats never could have become popular without decades of economic development that lifted the market to the point where such expensive rural destinations could be seen as attractive to consumers.
In recent years， increasing incomes and changing lifestyles have promoted more consumption in China. Spending big money on nature experience is already normal. Constant battles against urban ills such as environmental pollution and traffic jams make such an environment an easy sell to urbanites， and Mt. Mogan is one of the most attractive choices for holiday getaways. Considering its geographical position between major metropolises such as Shanghai and Nanjing， the biggest surprise seems to be that exotic inns at the foot of Mt. Mogan didn’t become trendy earlier.
Rural Deqing’s renaissance could inspire more people to discover tremendous value hidden in dilapidated rural locales. China has a history of several thousands of years of agricultural civilization. However， dramatic changes have taken place in rural areas and farming since the 1970s when the country began implementing economic reform and opening up. Over the last 30-plus years， rural China has experienced two significant “value discoveries.”
The first discovery of rural value took place during the late 1970s and early 1980s when contractual household output-related responsibility system was implemented to eliminate grain shortages and backward agricultural organizations and production modes， and ensure no one went hungry. The dramatic change in farmland usage system revolutionized the organizational form of agricultural production and resulted in China’s miracle of feeding 22 percent of the global population with only 7 percent of the world’s arable land. The second rural value discovery happened after reform and opening up when the country entered the stage of rapid industrialization and urbanization， luring the rural labor force away from farms to help build the country.
This trend injected new value into peripheral urban areas as hundreds of millions of farmers relocated to cities seeking better incomes， and the collective result was the greatest economic growth in the history of mankind. But in the meantime， untold numbers of rural abodes were left abandoned.
However， persisting institutional factors， such as “price scissors，” which had long existed in the industrial and agricultural product chains and comparatively marginalized rural areas， created a constantly-widening gap between rural and urban incomes， infrastructure facilities， and public services.
At present， another round of rural value discovery is happening ecologically， targeting demands emerging alongside heavier consumption， with focus on quality of life. As predicted， more capital and purchasing power is funneling into the rural areas with their pristine natural environment.
During his investigation of Anhui Province this April， Chinese President Xi Jinping attended a forum on rural reform in Xiaogang Village， Fengyang， at which he stressed that China cannot be considered strong if its agriculture is weak； China cannot be considered beautiful if its countryside is ugly； and China cannot be considered wealthy if its farmers are poor.
The effects of the government’s great endeavors have been obvious. In Deqing， the local government has shut down the polluting enterprises such as bamboo factories， west of the mountainous regions. The construction of highways， greenery， environmental santitation， and communications has also been planned by the government.
The popularity of “exotic inns” has tremendously benefited the local farmers in realms of real estate， secondary industries supplementing the homestay economy， and employment. In the long term， more strategic plans and institutional arrangements are required for rural China to permanently enjoy benefits of the “great discovery of rural value，” so that green mountains and rivers can better serve as powerhouses of the country’s rural development.
What Happened？
It all started about nine years ago. In 2007， a South African named Grant Horsfield discovered a group of mostly abandoned dwellings at the foot of Mt. Mogan that was once the village of Sanjiuwu. He rented several buildings and refurbished them. He called his new lodge“Naked Retreats，” and the accomodation soon became popular with Horsfield’s circle of friends. The small village soon became one of the most popular destinations for foreign investments， and Horsfield started seeing potential profits in the forests of Mt. Mogan.
October 2011 brought the launch of Horsfield’s follow-up project， “Naked Stables，” which was built near Sanjiuwu at a cost of about 200 million yuan. Before long， it was hard to book a humble little earthen abode for 2，000 or 3，000 yuan per night – never mind the 10，000 yuan per night for a villa. Contrasting rural inns operated by farmers， the locals call such homestays “exotic-flavored inns” because they were funded and operated by foreigners， attracting foreign guests and travelers from major cities.
The great potential has attracted investors from more than 10 countries including France， Britain， Belgium， and South Korea. Chinese businessmen have joined these ambitious foreigners in moving to the mountains to open “exotic inns，” and increasing numbers of visitors from nearby cities of Hangzhou and Shanghai， and from Jiangsu Province， began flowing in.
Today， over 70 high-end inns including Naked Stables and Le Passage Mohkan Shan are open in addition to over 200 homestays catering to a wide range of travelers.
Occasionally， local villagers complain about the loss of tranquility， but it is quick- ly forgotten with a glance of the improved public facilities such as highways， appreciating property values， popular farm products， and better job opportunities. Previously， the mountainous area down here was plagued by inconvenient transportation. In winter， the area was largely inaccessible to the rest of the world. Farmers survived on what they could find in mountains – nothing but tea and moso bamboo， which are hardly worth the labor to cultivate.
In recent years， however， as the business pattern established by “exotic inns” grows， great changes have taken place in the mountains. Farmers rent their houses to businessmen from elsewhere， which can sometimes fetch a lump single million-yuan payment for a 30-year lease. That sum can buy a three-room house elsewhere in the county. Refurbished rooms go for more than 1，000 yuan a night， and farmwives who excel at cooking are hired at inns.
Rediscovery of Rural Value
The current situation seems to have happened by chance， but places like the Naked Retreats never could have become popular without decades of economic development that lifted the market to the point where such expensive rural destinations could be seen as attractive to consumers.
In recent years， increasing incomes and changing lifestyles have promoted more consumption in China. Spending big money on nature experience is already normal. Constant battles against urban ills such as environmental pollution and traffic jams make such an environment an easy sell to urbanites， and Mt. Mogan is one of the most attractive choices for holiday getaways. Considering its geographical position between major metropolises such as Shanghai and Nanjing， the biggest surprise seems to be that exotic inns at the foot of Mt. Mogan didn’t become trendy earlier.
Rural Deqing’s renaissance could inspire more people to discover tremendous value hidden in dilapidated rural locales. China has a history of several thousands of years of agricultural civilization. However， dramatic changes have taken place in rural areas and farming since the 1970s when the country began implementing economic reform and opening up. Over the last 30-plus years， rural China has experienced two significant “value discoveries.”
The first discovery of rural value took place during the late 1970s and early 1980s when contractual household output-related responsibility system was implemented to eliminate grain shortages and backward agricultural organizations and production modes， and ensure no one went hungry. The dramatic change in farmland usage system revolutionized the organizational form of agricultural production and resulted in China’s miracle of feeding 22 percent of the global population with only 7 percent of the world’s arable land. The second rural value discovery happened after reform and opening up when the country entered the stage of rapid industrialization and urbanization， luring the rural labor force away from farms to help build the country.
This trend injected new value into peripheral urban areas as hundreds of millions of farmers relocated to cities seeking better incomes， and the collective result was the greatest economic growth in the history of mankind. But in the meantime， untold numbers of rural abodes were left abandoned.
However， persisting institutional factors， such as “price scissors，” which had long existed in the industrial and agricultural product chains and comparatively marginalized rural areas， created a constantly-widening gap between rural and urban incomes， infrastructure facilities， and public services.
At present， another round of rural value discovery is happening ecologically， targeting demands emerging alongside heavier consumption， with focus on quality of life. As predicted， more capital and purchasing power is funneling into the rural areas with their pristine natural environment.
During his investigation of Anhui Province this April， Chinese President Xi Jinping attended a forum on rural reform in Xiaogang Village， Fengyang， at which he stressed that China cannot be considered strong if its agriculture is weak； China cannot be considered beautiful if its countryside is ugly； and China cannot be considered wealthy if its farmers are poor.
The effects of the government’s great endeavors have been obvious. In Deqing， the local government has shut down the polluting enterprises such as bamboo factories， west of the mountainous regions. The construction of highways， greenery， environmental santitation， and communications has also been planned by the government.
The popularity of “exotic inns” has tremendously benefited the local farmers in realms of real estate， secondary industries supplementing the homestay economy， and employment. In the long term， more strategic plans and institutional arrangements are required for rural China to permanently enjoy benefits of the “great discovery of rural value，” so that green mountains and rivers can better serve as powerhouses of the country’s rural development.