From my experience, the altitude in Lijiang wasn't bad (& this is coming from a person who lives in a low, flat basin). It's the lay out of the streets, especially in the old city, that could make teams lose time. Very confusing, lots of small alleyways without clear markings & a lot of them are uphill which can be tiring after you get lost for hours looking for one frigging place.
I remember there's one place where people hang up lots of small wooden plaques with their wishes, this could be part of a task.