Many modes: plane, bus, taxi, feet
Lijiang has daily flight between Kunming and other major cities in Yun Nan province; it also has 'direct' flight to Shanghai (via Kunming, stop for an hour) during the week. (Flight Kunming-Lijiang: RMB 420), Flight Lijiang-Shanghai (RMB 2,000).
One can take a taxi from Kunming, Dali, or Zhongdian, or take long distance (possible overnight sleeping bus). Taxi Lijiang-Dali (RMB 400), Bus RMB 50 (with A/C).
Across the intersection from Guan Fang Hotel, airport shuttle bus would take you to/from the Lijiang Airport for RMB 10 (Taxi around RMB 80).
Fly into Lijiang from Kunming or other cities
Just wanted to point out that if you are low on time like I was you can certainly fly from Kunming to Lijiang. Back in 2001 it cost under $50 USD.
Otherwise, it's best to go by bus since there are dirt cheap. A word on warning on night bed-buses, try to travel w/ a partner since you'll end up sharing a bed.
Bus from Walnut Grove to Lijiang
This is the direct bus I took from Walnut Grove to Lijiang.
Price: about 30 CNY
Time: around 11:30 a.m.
Mao Ze Dong Plaza
Remember this place, just opposite, you can find long distance bus station as well as mini-buses going to YuLong Mountain. You can also rent 2-seated bicycle here next to the plaza.
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