"Now the road has been widened to 12 meters, it's common to see traffic jams in summer when the tourists arrive. Many families have

moved into new houses and bought cars," said Qin, who has written several books and articles about his hometown.

Mayor Wang said developers have now invested 8 billion yuan ($1.2 billion) in the town, which has boosted living standards for many residents.

"Last year, the average per capita income jumped to 9,636 yuan from about 3,000 yuan in 2011. In the eight villages near the town's downtown, including Yaocai, the average household savings of the 10,000 residents have reached 732,000 yuan as a result of flourishing real estate tourism," he said.

Chongqing University of Technology has now invested in a 1 billion yuan project that includes a hotel, apartments and an international center for academic exchanges.

According to Wang, the local government realized the potential of real estate tourism in 2011, when they saw people from the Wanzhou district of nearby Chongqing help to fund construction of houses for their relatives in the town. The houses also provided the outsiders with a place to escape the heat during Chongqing's baking summers.

"From August to November 2011, we went to Wanzhou to encourage further investment and signed contracts with 35 companies to develop real estate tourism," he said.

During summer, the temperature in Moudao rarely exceeds 20 C, almost half the average temperature in Wanzhou, about 70 kilometers away.

That's because the town stands 1,400 meters above sea level, and about 70 percent of the area is covered by trees, which results in high levels of negative ions (thought to promote feelings of harmony and happiness), according to developers.

Chongqing resident Ji Songling bought an apartment in Moudao in 2012. "Temperatures are low and we enjoy the picturesque scenery and fresh air. It's cheap to buy an apartment here. We spend at least two months in Moudao during summer," the 48-year-old said.

Luo Shirong, owner of the Xiadu hotel, who made a small fortune from the development of real estate in the town, said the local government's preferential policies mean developers only have to pay for the land covered by buildings they construct. They also have free use of the mountains and forests as backdrops for their projects, factors that developers find very attractive.

According to Liang Feng, general manager of the Linhaiyuntian development, construction work has finished on 15 percent of the 5,500 apartments that will eventually cover more than 133 hectares, and more than half of them have been bought by people from 14 provinces and regions. The average price of an apartment in the project is 4,500 yuan per square meter, higher than in many county-level cities.

Liang said that in addition to the natural environment, Moudao is sparsely populated and its advantageous location, close to a number of cities with rail and air links, makes it perfect for the development of real estate tourism: "The advantages are unparalleled and the town is full of potential."