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What is to do?2/20/2013

Old town. Wander the old town at the south end of town.
Horses. Tibetan horses are available for hire outside of town. Taxi drivers should know how to get there.
Biking around Napa Lake, (5 km. west of the Old Town, just over the hill on Dawa Lu.). Rent a mountain bike and ride out into the grasslands west of the Old Town near Napa Lake. There are checkpoints on the road that stop bikers and ask them to buy a 60 RMB Napa Lake Ticket. It is possible to avoid this depending upon where you ride, however villagers can get aggressive if they stop you and you refuse to pay. Do not attempt to ride the full 30 km. around the lake because the road on the far side near Napa Village is heavily under construction.
Nixi Tibetan Village, (30 km. north of Shangri-la.). Archaeological evidence shows that the Tibetan tradition of crafting pottery in Nixi Village dates back at least 2,000 years. Visit the master potters and learn to make the pottery; have lunch in a traditional Tibetan home; take a walk or hike around this scenic village.
Private homes. Visit the homes of local people. Many of the locals open up their homes to tourists. They ask for a small fee to compensate for the food. You can hang out with the family, and the younger adults will lead you to ride horses in the open field. Mind you the Tibetan horses are trained, but they can be very unfriendly towards strangers.
Skiing, (About 15 minutes west of town on Shika mountain). Closed Apr-Sep. A new ski resort has opened. T-bars and chair lifts available. Price starts at ¥160 (including all equipment, fees) for 2 hours.
Countryside. Hire a vehicle for a few hours to just explore the countryside, or rent bikes and go see the surrounding villages. edit
Shika Mountain (石卡山; Shí​kǎ​shān; also known as Blue Moon Valley (蓝月谷; Lán​yuè​gǔ​)​). Climb the mountain or take cable car (¥220, 45-minute ride to the top).
Thin Air Adventures, Old Town, Shangri-la, ☎ 18808859076, Thin Air Adventures provides horseback riding and guided mountain biking tours in the area's surrounding Shangri-la (Zhongdian). Office is located in the old town above The Compass Cafe. Open April to the end of November. (27.815769,99.703926)
Golden Dragon Street Gallery, (Next door to Raven Hot Pot).
Tianshenqiao Hot springs (天生桥). Natural outdoor amphitheatre. Public bath mostly chinese, women may feel uncomfortable. A bit expensive. ¥20 per person park entry fee plus ¥80-¥200 per person for public/private hotsprings.
Xiagei Hot Springs (下给). Private rooms ¥30-¥40. edit