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China’s Tourist Spot Operators Report First-Half Losses Due to Covid-19
An Zhuo
DATE:  Aug 31 2022
/ SOURCE:  Yicai
China’s Tourist Spot Operators Report First-Half Losses Due to Covid-19 China’s Tourist Spot Operators Report First-Half Losses Due to Covid-19

(Yicai Global) Aug. 31 -- Every listed operator of a scenic spot in the Chinese mainland  reported a loss for the first half, after revenues tumbled from a year earlier as a result of restrictions on tourism amid outbreaks of Covid-19 in the country.

The 11 listed companies lost a combined CNY784 million (USD113.7 million) in the six months ended June 30, according to Yicai Global’s calculations based on their half-year financial reports.

At CNY172.2 million (USD25 million), Huangshan Tourism Development in eastern Anhui province posted the biggest loss after its revenue halved to CNY214.1 million.

The Huangshan scenic area, which includes the renowned Yellow Mountain range, welcomed 333,600 visitors in the first half, down 66 percent from a year ago, according to the company’s semi-annual report released on Aug. 27. Its aerial ropeway and cable car transported 665,600 visitors, a 67.4 percent drop.

Due to repeated flareups of Covid-19, most regions of China brought in travel curbs during the first half. Domestic tourist numbers fell 22.2 percent to 1.46 billion from a year earlier, while revenues slumped 28.2 percent to CNY1.2 trillion (USD174 billion), according to data from the culture and tourism ministry.

Other scenic spot operators with significant losses were Guangxi Zhuang Autonomous Region-based Guilin Tourism, which had a CNY133.7 million deficit, and Hunan province-based Zhang Jia Jie Tourism Group, which lost CNY117.2 million.

As the central government has eased restrictions on cross-provincial travel since the end of May, tourist spending is expected to rebound in this half, Fitch Ratings said in a recent report. But the recovery may vary by region and tour operator, it added.

Editors: Dou Shicong, Peter Thomas

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Keywords:   Tourism,Losses,Covid-19