According to the media sources, Airbnb is shutting down its operations from China. The company is rolling out of China. This is because of the current “Zero-Covid” policy. This policy is pushing down tourism, thus making it unprofitable for an international company to work there.
What is Airbnb?
Airbnb is a multinational company hailing from America. It is an online rental platform that allows travelers to book and rent out places as they visit a different country or a city. Booking hotels, rooms, or houses had never been as easy as through Airbnb. The company is operational in more than 220 countries across the globe. The company takes over the advantage of tourism.
Why is Airbnb bidding farewell to China?
China is in hot bubbles for the past few years. Its economy was first suffering from the Covid-19 and now is suffering the aftermaths of the breakout of the coronavirus. China gets a setback after US bans Huawei phones from using Google. Then, another set back comes in recent days where Canada and 4 other countries ban Huawei from 5G networks. Now China faces rolling out of Airbnb.
Airbnb is claiming unprofitable situation in China. It says that over the last few years, China has let it attain only 1% of the entire global revenues. By summers, it is going to list-off all China-based residencies uploaded on Airbnb. It is underway of clearing all the data.
Before, China was one of the major Airbnb revenue generator. In 2019 alone, there were 155 million journeys out of China, reports the UN World Tourism Organization, Thus, tripling the Chinese travelling abroad. However, after pandemics, the situation is not same. Neither the tourists are going to China, nor the Chinese are travelling abroad. There are state-level travel restrictions.
China in early years of Airbnb set up in China was making huge profits. In 2016, Airbnb enters China is welcomed gracefully. from 2016 to present, 25 million guests have availed Airbnb services!
Is China facing problems at International level?
It is safe to say that China is facing issues. Be it social or economical. The economically strong country is facing one after one challenges. It can not work under lockdowns and cannot work without lockdowns. Reports claim an effect on GDP by 16.7%. More health expenses, lower exports and lower production at national level means a great set back for China.
The real concern for the economy is health of the people. Amid which economy is suffering.