Huangling: Overcoming Growth Stagnation in an Indigenous Tourism Destination

Kefa Yu, Xixia Zhang, William Wei, Linghao Yan, Yongwen Zou, Tingyan Xiong

Product #:W43103

Supplier:Ivey

Discipline:Marketing, Sustainability

Setting:China, 2022

Details:Case (PDF) • 12 pages • 2025-04-15

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Geography:

China Asia

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Huangling was a Chinese scenic rural destination that became popular with travellers when Wuyuan Huangling Cultural Tourism Co. Ltd. restored the destination and launched it in 2014 as an indigenous cultural tourist destination. However, despite initial success, tourist growth at Huangling began to slow around 2019. The general manager, Wu Xiangyang, expanded the tourism destination with seasonal events, specialty homestays, and local cuisine, but the outcomes were underwhelming. The COVID-19 pandemic added to Huangling’s need for transformation. By 2022, with limited growth prospects, the scenic spot faced the challenge of revitalizing its market appeal, hindered by its reliance on traditional indigenous culture and a singular revenue model. Wu realized the importance of collaborating with external partners to overcome Huangling’s barriers to growth. He needs to undertake a comprehensive stakeholder analysis to balance internal and external expectations and find new ways to co-operate and share profits to bypass growth limitations. Can he create a sustainable future for Huangling by blending indigenous cultural heritage with profitability in an evolving competitive landscape?

Learning Objectives

This case study is well-suited for courses in strategic management, tourism management, business model design, and marketing, particularly for discussions centred on building a business ecosystem. It is best introduced during the latter half of a course, providing students with an opportunity to apply preliminary concepts to a thorough analysis of the case. Primarily aimed at full-time business administration graduate students, the case also serves as a valuable resource for undergraduates. Additionally, individuals with prior work experience or a background in management will find this case study enriching for deeper exploration. After working through the case and assignment questions, students will be able to do the following:

Examine Huangling’s macro and micro marketing environments, extracting key insights that inform the indigenous scenic spot’s strategic planning.
Investigate the necessity of collaborating with external stakeholders to achieve sustainable growth. Critically assess the limitations posed by Huangling’s current resources while highlighting how stakeholder demands and sustainability considerations drive the need for strategic changes.
Analyze and identify the key stakeholders in the development of rural indigenous tourism. Balance their interests to prioritize sustainability and foster collaboration to create a mutually beneficial state that supports Huangling’s sustainable growth.
Explore how prioritizing stakeholder interests can strengthen Huangling’s core competencies. Understand how these actions contribute to positioning Huangling for a sustainable competitive advantage in the rural tourism market, ensuring long-term growth.