Airbnb will close its business in China due to zero covid restrictions

Is China's "zero covid" strategy efficient?

2:24

CNN --

Airbnb will close its domestic listings in China this summer due to slow business activity and "expensive and complex" operating restrictions made worse by the impact of Covid-19, a source familiar with the matter told CNN on Monday.

"Airbnb will refocus its efforts in China to focus on the outbound travel business and suspend its domestic homes and experiences this summer," the source said.

He added that China has been closed to most international travelers since the beginning of 2020 "with no end in sight."

• What is the economic, political and mental health cost of China's zero covid-19 policy?

Airbnb launched in China in 2016, and since then, outbound travel by Chinese customers, mainly in the Asia-Pacific region, has been the biggest opportunity for the company, the source said.

“Historically, outbound travel from China has been a significant source of travel to other Asia-Pacific destinations and therefore a valuable driver of Airbnb's network effect in the region,” the source explained, adding that they expect that trend to "pick up" once China opens its borders.

• Airbnb workers will be able to work remotely permanently

Airbnb listings within China have only accounted for 1 percent of the company's revenue in recent years, the source said, explaining the company's decision to suspend its domestic business there.

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