The measure has sparked a backlash from businesses and tourists.

"The policy's results are not very clear since it just took effect, but I think it will have a substantial impact on us in the long run," said the owner of Bianke Cafe, who only gave his surname Cai.

"As far as I know, some hostels have begun to receive calls from people wanting to cancel their reservation. The number of customers to my cafe has also been declining over the weekend compared with the past."

Concerned business owners staged a protest on Thursday, blocking access to tourist sites and requesting authorities adjust the charge policy.

The crowd was later dispersed by law enforcement officers, and four people involved in a physical conflict with officers were taken away by police, Cai Long, deputy head of the county government, said on Saturday.

He said the policy was introduced to regulate the tourism market and will help to protect the old town and benefit business in the long run.

Meanwhile, Zhao Haifeng, executive deputy head of Fenghuang county, said the government is aware of the policy's effect on small businesses and will take measures to assist them.

"It is inevitable that hostels will receive less independent tourists than before, and reforms will definitely produce some pains," he said. "During this process, the government is going to help those affected overcome difficulties."

However, business owners remain skeptical toward the policy and its possible consequences.

"The government never contacted or negotiated with us before the policy was made, and we have not seen any concrete efforts by the government to help us," the employee at March Inn said.

"Authorities claim that one of the measure's intentions is to address 'illegal businesses and irregular operations' in the tourism market, and I am OK with that. But I think the ultimate solution to those problems is to help people get better jobs rather than taking their bread."