Airbnb is closing its business inside China indefinitely because of its zero-Covid policy, lockdowns and travel restrictions.
On Tuesday, Airbnb told its China-based users it would stop taking all bookings for accommodation and experiences in China from July 30. According to screenshots of Airbnb's notice shared across Chinese social media, the ability to book for dates beyond 29 July was suspended on Tuesday morning. An attempt to make bookings from outside China after that date resulted in an error message.
According to a source familiar with the decision, Airbnb s domestic business in China is suffering from China's Pandemic restrictions, with no indication that authorities will move towards co-existence with the virus or open its borders.
As a wave of Omicron cases spread across China, the government has doubled down its policy of eliminating Covid 19. The cities of Shanghai and Beijing have been subject to city-wide or localized lockdowns, and there are widespread travel restrictions between cities and provinces.
The accommodation provider has operated inside China since 2016 with domestic listings across the country. The company says about 25 million guests have made bookings in the past, but it is costly and complex to operate and faces strong local competition. The revenue from China-based stays accounts for about 1% of global takes, and Covid 19 has worsened the issues and heightened their impact, according to a source told the Guardian.
The Chinese media outlet, Pheonix news, reported that Airbnb would maintain an office with hundreds of employees in Beijing.
The company wouldn't say anything further on the record.
The news became a topic on Tuesday on China's Weibo social media platform, with many comments on how little a share of the market Airbnb held even before the Pandemic.
Chinese residents are subject to heavy restrictions on international travel, which has had a significant impact on the global tourism industry. Between 2010 and 2019 the number of Chinese tourists traveling overseas nearly tripled to 155 million.
As the rest of the world reopens, Airbnb claims it has reached a record high number of bookings in the first quarter of this year, with more than 102 million bookings for accommodation and experiences. Airbnb told shareholders in a letter that guests are booking more than ever before. We see strong pent-up demand going ahead. The trends of people booking stays away from urban areas and staying relatively close to home continued, but guests were also returning to cities and making cross-border trips, according to the company.