A growing number of travellers in China are choosing to stay with local families rather than in hotels. Indeed the home-sharing industry has now become an integral part of China’s service sector.

Pingle old town, a destination bustling with holidaymakers.

Nearly 300 households here operate family hotels.

Zhu Lunsong and his wife were the first to take the plunge ten years ago.

"This house is more than 100 years old. It was built by my grandparents. I turned it into a hotel so that people can enjoy its profound cultural qualities," he said.

The house used to be empty.

Thanks to booming tourism, it's now filled with people from nearby cities.

"Whenever I travel to distinctive ancient towns, I prefer to stay in private residences, not hotels. I like to experience local culture and customs," Sichuan tourist Jiang Yixi said.

A growing number of travellers in China are choosing to stay with local families rather than in hotels. Indeed the home-sharing industry has now become an integral part of China’s service sector. (File Photo)

The business can generate an annual income of about 100,000 yuan, or 15,000 US dollars, for each household.

The local government plans to inject more money into the industry.

The local tourism authority is taking the lead in regulating the growth of the industry.

The director says there are training and incentives, but more needs to be done.

"We have rolled out measures to regulate the local home-sharing business. But it still lacks an adequate legal framework. I think we need more detailed laws and regulations," said Ma Yan, director of Linqiong Scenic Area Administration.

Zhu Lunsong is optimistic about the future of his family business.

He works intensively to foster his bamboo-root carving skills....something he believes will make his business stand out.

"I am planning to decorate each room with root carvings, so that my guests will feel the cultural touch. As the carvings are the authentic artifacts produced here, many people in cities have never seen them before," he said.

Zhu says this year 30 more families will join the home-sharing business.

But with no rules specifically designed for this market in China, operators are concerned about unregulated competition. They want a legal framework to ensure that expansion is sustainable.