Chinese tourist site operators report first-half losses due to Covid-19

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(Yicai Global) Aug 31 – Every listed scenic spot operator in the Chinese mainland reported a loss for the first half after revenue fell from a year earlier due to restrictions on tourism amid the country’s Covid-19 outbreaks.

The 11 listed companies lost a total of CNY784 million (US$113.7 million) in the six months ended June 30, according to Yicai Global’s calculations based on their half-yearly financial reports.

With 172.2 million CNY (25 million USD), Huangshan Tourism Development in eastern Anhui Province suffered the biggest loss after its revenue was halved to 214.1 million CNY.

The Huangshan Scenic Area, which includes the famous Yellow Mountain Range, welcomed 333,600 visitors in the first half, down 66 percent from a year ago, according to the company’s semiannual report released on Aug. 27. Its cable car and ropeway carried 665,600 visitors, a drop of 67.4%.

Due to repeated Covid-19 outbreaks, most regions in China imposed travel restrictions in the first half of the year. The number of domestic tourists fell 22.2% to 1.46 billion from a year earlier, while revenue fell 28.2% to 1.2 trillion CNY (174 billion USD), according to the data from the Ministry of Culture and Tourism.

Guilin Tourism, based in Guangxi Zhuang Autonomous Region, which recorded a deficit of 133.7 million yuan, and Zhang Jia Jie Tourism Group, based in Hunan Province, which lost 117.2 million yuan, also suffered significant losses.

While the central government has eased restrictions on inter-provincial travel since late May, tourism spending is expected to rebound this semester, Fitch Ratings said in a recent report. But the recovery may vary by region and tour operator, he added.

Publishers: Dou Shicong, Peter Thomas

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