The housing-sharing company has decided because of a downturn in the world’s second-largest economy and restrictions on “expensive and complex” operations, exacerbated by the impact of Covid-19, the man told CNN on Monday.
Starting this summer, Airbnb will remove its ads and offers for hosted experiences in China.
According to the source, Airbnb (ABNB) will not completely suspend its operations in the country. The company will continue to have an office in Beijing with hundreds of employees who will focus on outbound travel and global projects.
Dozens of cities in mainland China have been blocked in recent weeks as authorities work to eradicate the coronavirus.
The approach has severely damaged the economy and destroyed almost every major business, from high technology to consumer goods. International brands, from Apple (AAPL) to Estee Lauder (EL), have warned of the financial impact of the restrictions.
Airbnb launched in China in 2016. Like the rest of the industry, outbound travel by Chinese customers – mostly to other destinations in the Asia-Pacific region – was a great opportunity for the company.
This is because China has historically been the world’s largest market for outbound tourism, representing the largest cost to visitors worldwide, according to the World Tourism Organization.
But since the pandemic, China has experienced a sharp drop in traffic and has also been closed to most international passengers.
The source said they expect outbound tourism from China to recover once the country fully opens its borders.
Meanwhile, Airbnb’s domestic business, which has received about 25 million guests since 2016, accounts for only 1% of the company’s revenue over the past few years, the man added.
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