2,600 residents from the resort town of Shangri-la in Southwest China’s Yunnan Province are seeking refuge in makeshift shelters, following a massive inferno on Saturday.

Authorities are continuing to investigate, but say it’s too early to calculate economic losses. Some villagers say they’ve lost millions and are appealing to the Government to quickly restore their hometown so life can get back to normal.

A dark night in the once harmonious ancient town Shangri-la. Now in rubbles. Life will never be the same for Tibetan villager Da Wa.

"I’m still in shock. I find it hard to believe. We are disheartened that our homes are gone," Da Wa said.

Da Wa and his neighbors saw their homes and businesses devoured by the inferno.
Among the charred rubble are jewelry stores, bars and hotels which made up much of the ancient town’s economy.

Rescue workers are working through the night to plough through the debris. At this hour, no one can tell us the exact losses but they know for sure, thousands of people have lost their homes and businesses. More work ahead will be more challenging now that snow and rain are in the forecast.

Nothing much is left of Shangri-la, except smouldering smoke and debris. And there are reports of potential fire and gas leaks.

Rescue teams have been battling to save Shangri-la since the fire broke out around 1:30 Saturday morning.

Media reports say it took firefighters nine hours to bring the fire under control. Not soon enough for Ma Xuehua.

"They could have done better. The fire kept burning and burning. We could have saved our home. We lived here for generations. We must restore our town," said Ma.

Ma is among the 2.600 residents evacuated. Authorities say wooden structures make Tibetan towns more susceptible to fire.

No one was injured and still no clue on the cause. Leaving residents baffled over what destroyed their mystical Shangri-la.