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Chinese tourism fell into a 'death spiral' because of Covid-19
Date : 2020-06-19

Beijing recorded dozens of new cases of Covid-19 after it detected an outbreak in the Tan Phat Dia wholesale market last weekend. Most people in mainland China are concerned about tourism and finance, according to the survey results.

Zhang Ban, a driver of a shuttle for a travel service company in Shanghai, complained that the Covid-19 pandemic was the cause of his income falling by more than 50%.

"We are among the main victims of corona virus," Zhang said. "Tourism is devastated by disease and I feel hopeless."

As of April, after Covid-19 was controlled in mainland China, most manufacturing and service companies had resumed operations. But tourism is not so, as mainlanders have been restricting travel since the outbreak in Wuhan last year.

About 59% of Chinese consumers who took part in the Boston Consulting Group's survey in May said they were concerned about their family finances and were cautious about traveling.

An outbreak of Covid-19 infections in Beijing last weekend made some people more wary about boarding a car, a car or a train. And certainly, this development is not conducive to about 30 million workers in the tourism industry in mainland China.

"I intended to take my two children to Beijing to visit historical sites during the summer vacation but had to cancel my plan because the capital of the corona virus appeared again," said Zhang Wenjie, owner of a motorbike maintenance shop. . "Safety is always a top priority."

Du lịch Trung Quốc rơi vào ‘vòng xoáy tử thần’ vì Covid-19 - Ảnh 1.

Group of female tourists taking photos in a famous old village in Beijing on June 9. Photo: AP.

Beijing closed Tan Phat Dia, the city's largest food wholesale market, on June 13 and announced a "wartime management" policy in a district after determining it was the new Covid-19 outbreak. outbreak.

Zhang Ban is concerned about future work. He started to get a pay cut in February.

“The workload continues to decrease due to the absence of visitors. Naturally, leaders will be forced to lay off employees to survive when the market declines, ”he shared.

China's domestic tourism sector generated revenue of 5,730 trillion yuan in 2019, an increase of 11.7% from the previous year.

Chinese tourists have become a major driver of the global tourism market because the number of wealthy people seeking new experiences is increasing. Last year, the number of Chinese tourists traveling abroad was 162 million, an increase of 4.6% compared to 2018.

Estimates, blockade orders and strict measures implemented in the period of February - April can cause China's tourism industry to lose at least 1,000 billion yuan.

Huangshan Tourism Development, listed on the Shanghai Stock Exchange, which manages the scenic spots on Huangshan Mountain, Anhui Province, reported a net loss of 77.2 million yuan (US $ 10.9 million) in the quarter. I, in contrast to a profit of 23.6 million yuan the same period last year. The company warned investors about the risk of losses in the first half of this year because of a sharp decline in tourist numbers.

Since March, Beijing has restricted international flights to prevent the import of Covid-19 cases. China also applies a compulsory 14-day quarantine with its citizens returning from abroad.

These restrictions have eliminated the need for foreign travel.

A senior executive of a state-owned tourism company said it has stopped opening trips abroad since February. Demand for domestic tourism is only a fraction of that of the same period last year. said.

Zheng Honggang, executive director of Kate Travel, based in Shanghai, warned that mass layoffs are unavoidable in the current market context.

"We have tried to keep employees by reducing costs, reducing wages but still can not maintain business operations without acting more aggressively," he said. "This is the time to decide success or failure for travel companies."

For many working in the tourism industry, the Covid-19 information broke out in Beijing as "a drop of water".

"We cannot expect people to make travel plans after hearing of an increase in the number of cases in Beijing," said free travel guide Scott Yin. "It is time to consider choosing a new job because nothing can stop the death spiral in the tourism industry."

 

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