Lijiang has become advantageous frame brand of Yunnan tourism and an important window for opening to outside world, however, the old town tourism environment will face large pressure, the resources endowment of the old town is irreplaceable. If extensive economic growth mode is continuing, the resources will disappear and the environment can not support the mode. Thus, the development of circulation economy is the inevitable choice and has significant meaning for the world to protect similar heritage. The circulation economy of tourism industry has different modes at different levels, including small circulation at enterprise level, middle circulation at regional level and big circulation at social level.