In one project, he teamed up with the Yungang Research Institute to use digital technology to capture high-resolution images of the grottoes' monumental Buddhist statues, preserving every detail of the carvings.
The images were then scaled down for shadow puppet production, bringing the stories of the grottoes to life on stage.
The production went on to become a resident performance at the site for 15 years.
"Cultural tourism at scenic sites and the development of beautiful villages both urgently need distinctive cultural content," Hou says.
His workshop has trained more than 300 students in the art of shadow puppetry.
"Once they master the craft, they can return to their hometowns, set up performance spaces in village settings, and adapt local stories for their shows."
In 2016, Hou brought Xiaoyi shadow puppetry to San Jose in the United States. For a performance of the Chinese love story of Liang Shanbo and Zhu Yingtai (The Butterfly Lovers), Hou chose to use music from the opera Romeo and Juliet as accompaniment. The performance ended with a waltz, preserving the traditional form of shadow puppetry while blending in elements of Western culture.
"To reach global audiences, we cannot abandon our traditional local singing styles and artistic core. At the same time, we can make good use of music as a universal language," Hou says.
"Beyond that, we need to continuously enrich our stories, so that they have the power to transcend cultures and resonate with audiences everywhere."