Three southwest Chinese regions have vowed to end their 'chaotic' battles and work jointly to exploit the worldwide lure of Shangri-la, the state media reported on Thursday.

The word Shangri-la became world-famous after British writer James Hilton published his book Lost Horizon in 1933. Shangri-la is said to be the popular Tibetan word for 'sun and moon in the heart', or an ideal, enchanting wonderland.

In order to develop their local economies, Sichuan, Yunnan and Tibet had all played the Shangri-La card, each claiming that the real Shangri-la was in its territory.

After consultations, government representatives of Sichuan and Yunnan provinces and Tibet Autonomous Region signed a declaration of cooperation, Xinhua news agency reported.

They agreed to end the 'chaotic' battles among themselves and construct a broad-based Shangri-la eco-tourism zone, Xinhua quoted industry experts as saying.

"Cooperation of the three regions in tourism would help reduce cost of the tourism industry, enlarge the tourist market and improve the efficiency of tourism development," Wang Huichen, deputy governor of Sichuan province, said.

In 2001, Tibet Autonomous Region put forward a proposal that the three regions optimise all Shangri-la tourism resources and promote them as one.