Beijing, Jan 17 (IANS): The fire in an ancient town in Shangri-la, a resort county in China's Yunnan province last Saturday, was caused by a heater, authorities said Friday.

The town, which dates back 1,300 years, is popular among tourists.

According to a statement of the fire-fighting and disaster-relief agency, the blaze broke out in Ruyi Inn in Dukezong Ancient Town after its owner Tang Ying forgot to turn off the heater which first burnt a nearby curtain, Xinhua reported.

Tang was being investigated for negligently causing the fire, the statement said.

The fire burnt more than 59,980 square metres of area, damaging more than 240 houses, with 43 properties dismantled. The blaze caused direct economic losses of 89.83 million yuan ($14.85 million).

Officials said that more than 2,600 people have lost their homes in the blaze, which raged for nearly 10 hours before it was put out by 2,000 firefighters, police and volunteers. No fatalities were reported.

Apart from houses, shops and infrastructure facilities, the fire damaged cultural relics, Tibetan thangka and other arts.

The town was part of a county called Shangri-La, which, with its dramatic scenery, was believed to have inspired the fictional paradise described in the 1933 novel by British author James Hilton.