Hong Kong ( CNN ) -- Most of a 1,300-year-old Tibetan town popular with tourists was destroyed by a fire over the weekend , renewing concerns over commercial development at Chinese heritage sites . The blaze , which raged for 10 hours on Saturday , destroyed at least 240 houses or two thirds of the ancient settlement of Dukezong in Yunnan province , southwest China , according to Xinhua state news agency . The town was known for its well-preserved Tibetan dwellings and the fire spread easily from one wooden house to the other after starting in a small hotel . Some 2,600 residents were evacuated from the scene , but no casualties were reported , Xinhua added . The possibility of arson has been ruled out , and the cause of fire is still under investigation , local authorities said . More than 1,000 firefighters and volunteers battled the flames , officials said , but the narrow streets made it difficult for fire trucks to maneuver . Fire fighters also found that hydrants were empty due to a shutdown in water supply during sub-zero winter conditions , according to Chen Tianchang , head of the fire service for the Deqen Tibetan Autonomous Prefecture , the region where the town is located . The town forms part of a county now called Shangri-La , which with its dramatic scenery claims to have inspired the fictional paradise described in the 1933 novel by British author James Hilton . The fire also renewed concerns over commercial development in China 's ancient towns , which have witnessed growing numbers of tourists in recent years . There have been a string of fires at heritage sites in recent months , Xinhua reported . In October , a blaze tore down an ancient building complex in Hongjiang , central China and a covered bridge in the Western city of Chongqing was destroyed by fire in November . Another fire also raged in the old town of Lijiang , Yunnan in March . Li Gang , director of the region 's cultural relics protection department , told Xinhua that the traditional gaps between the wood buildings in Dukezong to prevent fires had been filled in by restaurants , shops and guesthouses as `` tourism booms . '' `` We have to reconsider the traditional principle of architecture while enhancing fire extinguishing facilities , '' Li said .
Ancient town popular with tourists ravaged by fire . Two-thirds of town was destroyed , but no casualties were reported . The town , Dukezong , is known for its well-preserved Tibetan dwellings . Comment: