Most likely you’ll arrive here on ferry through the Li Jiang river cruise. Please don’t jump on the bus back, and enjoy the place for a few days (3 to 7 days is a good idea).
The whole city is tourist-y, but still very handsome corner for backpackers. There are many kinds of activities that can keep you there even for longer: tai chi or calligraphy lessons, short cruises on bamboo rafts (attention: those considered as pretty dangerous, but locals use them back and forth; not sure it is legal for foreigners to get on them, even), watch the Zhang Yimou's musical or just take a bike and ride through the local villages. Beware of faked “water caves” – you won’t have your money back.
The major local tourist street called Xi Jie is noisy. We’ve stayed and recommend the Yangshuo Flowers Int'l YH.
Don’t miss the local food such as vegetarian pots with rice and vegetables. They are truly delicious!