Local state corporatism is a development strategy generated in a specific social environment. It aims to study the relationship between government and enterprises in local economic development and social structure evolution. Taking the ancient town of Fenghuang as an example, this paper analyzes the process of the operation, development, and management of destination tourism in ancient towns based on the theory of local state corporatism. Evidence has shown that the operation of local state corporatism in the development of tourist destinations involves three stakeholders: authority, capital, and society. These stakeholders participate in the tourism development of ancient towns with their respective roles and behavioral characteristics and, in so doing, present a game relationship of diversified interests. The authority force conspires with the capital force to promote the development of local tourism, but social forces have also played a role in influencing the formation mechanism and development direction of local state corporatism. However, this type of operating logic can cause defects in the model itself, which can easily lead to certain social consequences. Thus, the government must exert its powerful administrative force to intervene in and overcome these potential problems.