Core Insights - The Hunan Zhangjiajie Dayong Ancient City project, which cost 2.4 billion yuan, has incurred losses exceeding 1 billion yuan over four years of trial operation, despite not charging an entrance fee [2][3] - The project was initially seen as a "star project" but has been criticized for its poor performance and lack of visitors [2][3] - The operational team admitted to decision-making errors, including insufficient market research and hasty project initiation, which contributed to the project's failure [2][4] Project Issues - The project faced several issues during its approval, construction, and operational phases, including incomplete procedures, budget overruns, and delays [3] - There are significant gaps in the oversight and regulatory processes by relevant authorities and the project owners [3] Market Context - There is a trend of overdevelopment in the "artificial ancient city" sector, with over 2,800 such projects in development across the country, despite only about 300 historical cultural towns existing [3][4] - The oversupply in the market has led to many similar projects facing abandonment or underperformance, indicating a systemic issue in the industry [3][4] Strategic Recommendations - The industry needs to move away from blindly replicating past models and instead focus on innovative approaches to meet changing tourist demands [4] - A robust decision-making mechanism and accountability for major decisions are essential to prevent similar failures in the future [4] - Respecting market dynamics and understanding consumer preferences are crucial for the success of tourism projects, as evidenced by the lack of interest in Dayong Ancient City despite Zhangjiajie's established reputation [4]