Airbnb to shut down domestic operations in China

The business in mainland China is shutting down due to rising costs and domestic competition, according to CNBC. The online vacation rental platform first launched in China in 2016 due to the enthusiasm of Chinese tourists who frequently use it while traveling abroad. According to sources who spoke to CNBC, the China segment ofAirbnb became too complex and expensive to operate due to the Pandemic. Local competitors made it difficult for the American company to gain an edge. The platform has revenue from stays in China for the past few years.

While a growing number of cities have banned or passed restrictive laws on short-term rentals, this was due to entrenched competition and regulatory issues. The Chinese government made it difficult for the company to operate in China. The company had to store its data on the government's server.

Given China's significant restrictions on travel, an inconsistent flow of international and domestic visitors due to the Pandemic was one of the more recent obstacles for Airbnb. According to the UN World Tourism Organization, the number of international tourist arrivals hasn't returned to pre-pandemic levels. The Chinese government has limited unnecessary travel for its citizens in light of a recent surge in COVID-19 numbers.