Dali sits at the southern end of Yunnan's main backpacker corridor, with several worthwhile day trips and onward stops:
Xizhou and Zhoucheng, Bai villages on the western shore of Erhai, are easy half-day trips by bike or bus. Xizhou is famous for its traditional courtyard houses and its baba (Bai flatbread); Zhoucheng for its indigo tie-dyeing workshops, several of which welcome visitors.
Shaxi, an old Tea Horse Road town in a quiet valley about three hours north, deserves an overnight rather than a day trip — but it is doable as a long day. The Friday market is the day to aim for.
Lijiang and Shangri-La are the next stops north on the Yunnan circuit, both reachable by train. Lijiang in 2 hours, Shangri-La in 5 hours by high-speed line.
