Ngakon, secretary of Party working committee of the management committee of the Old City of Barkhor, says the government views the protection of the historical area and improving the conditions of local communities as a priority, and an annual budget of about 20 million yuan ($3 million) has been invested to fulfill that commitment.

He says that over the years, drainage systems and streetlamps have been added, and the roads are repaved, so that residents feel their living environment improving every year, making them happier.

Among those benefiting from the improvements are Ratna Kumar, the 68-year-old Nepali owner of the Syamukapu Nepali Shop, which sells Buddhist statues. He and his family live above their shop.

Ratna Kumar came to Lhasa in the early 1980s to manage the shop, which his family opened some 140 years ago, and since then, he has settled in the city. He has witnessed living conditions on Barkhor Bazaar change greatly over time.

"Back then (in the 1980s) there were very few cars. Electricity came on at a regular time in the evening, but there was no running water."

He says the situation has been better since the 1990s, and the whole area looks clean and well-organized, so that both tourists and residents have comfortable experiences.

Xu says the renovations are designed to protect and preserve local culture. Tourists are able to feel the vigor of Barkhor Bazaar and the old town of Lhasa, and meanwhile, residents continue to enjoy the convenience of getting the services they need on a daily basis, for example, stores and hospitals are just meters from where they live.

Zhang Kemeng, a frequent traveler from the Ningxia Hui autonomous region, says he has been to almost all the famous tourist destinations across the country, and the uniqueness of Barkhor Bazaar is that it combines folk tradition, ethnic culture and religion, as well as enough commercial offerings to meet the needs of tourists.

"Quite frankly, I'm not against commercialization — the gift shops, studios doing makeup and photo services, must-visit restaurants and other daka (social media check-in) sites — as long as they don't disturb local residents. Some of these small businesses are either run by, or employ, people living along the street. It is part of their livelihood.

"There are many benches on Barkhor Bazaar. Pilgrims and residents share the benches with visitors like me, and when I did, I sensed harmony," he adds.

Penba says she has never thought about leaving the courtyard of Barkhor Bazaar for an apartment building.

"I belong here," she says.

Palden Nyima and Yang Lurong contributed to this story.