This photo was actually taken at the tourist location of Skansen in Stockholm, Sweden in July 2008.
Shangri-La is a fictional place described in the 1933 novel Lost Horizon by British author James Hilton. In the book, “Shangri-La” is a mystical, harmonious valley, gently guided from a lamasery, enclosed in the western end of the Kunlun Mountains. Shangri-La has become synonymous with any earthly paradise but particularly a mythical Himalayan utopia—a permanently happy land, isolated from the outside world. In the novel Lost Horizon, the people who live at Shangri-La are almost immortal, living years beyond the normal lifespan. The word also evokes the imagery of exoticism of the Orient. The story of Shangri-La is based on the concept of Shambhala, a mystical city in the Tibetan Buddhist tradition.