Airbnb is Closing its Listings Business in China

After two years of restrictions in China, Airbnb will terminate its listings “with no end in sight.” The decision was taken due to a drop in business in the world’s second-largest economy, as well as “costly and difficult” operational limitations exacerbated by Covid-19.

Airbnb will remove its listings and services for hosted experiences in China starting this summer. Airbnb activities in the nation will not be completely shut down. The business will maintain a Beijing office with hundreds of staff focused on outbound tourists and international initiatives. Multinational corporations are experiencing a slowdown in China, which remains one of the last countries on the planet to pursue a “zero Covid” policy.

Hundreds of mainland Chinese towns have been shut down in recent weeks as officials attempt to eradicate the coronavirus. From Big Tech to consumer products, the strategy has harmed the economy and disrupted practically every significant line of industry. From Apple (AAPL) to Estee Lauder (EL), international firms have warned of the financial consequences of the limitations.

In 2016, Airbnb made its debut in China. Outbound travel by Chinese clients — mostly to other places in the Asia Pacific area — was a key potential for the firm, as it was for the rest of the industry. According to the World Travel Organization, China has historically been the world’s largest market for outbound tourism, accounting for the greatest tourist spending internationally. China has experienced a steep drop in traffic, and has also been shut off to most international travelers.