The co-housing company made the decision on a downturn in business in the world’s second-largest economy, and “cumbersome and complex” operating constraints worsened by the impact of Covid-19, the person told CNN Monday.
Starting this summer, Airbnb will withdraw its listings and offers for experiences hosted in China.
According to the source, Airbnb (ABNB) will not completely stop its operations in the country. The company will continue to have an office in Beijing with hundreds of employees that will focus on outbound travelers and global projects.
In recent weeks, dozens of cities in mainland China have been shut down as authorities work to remove the coronavirus.
The approach has severely affected the economy and disrupted almost every major line of business, from Big Tech to consumer goods. International brands, from Apple (AAPL) to Estee Lauder (EL), have warned of the financial impact of the restrictions.
Airbnb was launched in China in 2016. As with the rest of the industry, Chinese customers’ outbound trips, largely to other destinations in the Asia Pacific region, were an important opportunity for company.
This is because China is historically the world’s largest market for outbound tourism, accounting for the largest visitor spending in the world, 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 travelers.
The source said they hoped that tourism leaving China would recover once the country fully opened its borders.
Meanwhile, Airbnb’s national business, which has hosted about 25 million guests since 2016, accounted for only 1% of the company’s revenue in recent years, the person added.