Minsu, or Chinese bed-and-breakfasts, are bracing against the epidemic's impact and preparing for a comeback, Xu Lin reports.

China's minsu business is booming in recent years, especially that in the rural areas, thanks to the national rural-revitalization policy. Experts say that Chinese tourists' demand for minsu will not change, but it will take time to restore the market after the novel coronavirus outbreak. (PHOTO PROVIDED TO CHINA DAILY)

Operators of Chinese-style bed-and-breakfasts have been running at heavy losses for the past two months since the novel coronavirus outbreak. But they're expecting a revival after the epidemic.

Home-share listings' trade size in China was around 16.5 billion yuan (US$2.38 billion) in 2018, a 37.5 percent increase over 2017, the State Information Center reported last year. In 2018, there were about 3.5 million listings in over 500 Chinese cities, and about 70 percent of hosts were born in the 1980s and '90s.

Full-time Airbnb host Li Hao has 30 listings of small-scale apartments in downtown Shanghai, many of which are in the same housing estate.

It's not uncommon for hosts to rent houses and renovate them into stylish listings. Li has to pay homeowners about 150,000 yuan per month in rent. Some have waived his rent for one or two months. Like other hosts, he has no guests due to the epidemic.

"Some hosts withdraw from the market by terminating their lease contracts with homeowners, and some transfer their lodgings to other hosts who have funds. A host can reduce the number of listings after selection," he says.

(PHOTO PROVIDED TO CHINA DAILY)

He says short-term rentals aren't allowed in cities during the epidemic.

Most cities require residents of communities to present passes at the gates, and delivery people must distribute goods outside residential compounds' walls.

As the epidemic situation has been improving, the residents' committee recently told minsu owners in Li's community that they can make their listings long-term rentals.

"It's an expedient measure. I'm also losing money for each listing even if someone rents it long term, but it's good to reduce the total losses," he says.

Rural minsu owners' situation is somewhat different.

Many scenic spots have recently reopened, as have some of the nearby accommodation businesses.

On March 9, Shuanglang ancient town in Dali, Yunnan province, announced that it has reopened with strict rules, such as limits on daily visits. Entertainment venues remain closed.

"Local minsu operators can also reopen as long as they meet the government's requirements," says Zhao Yihai, president of Shuanglang's minsu association.

"March and April are peak times for minsu. But business has been hit hard this year. Thanks to the national rural-revitalization policy, rural minsu have been developing rapidly in recent years, boosting local economies through tourism."

(PHOTO PROVIDED TO CHINA DAILY)

The town has 427 minsu, all of which had hired additional staff and purchased extra food to prepare for Spring Festival, when the occupancy rate was expected to be over 95 percent, he says.

On Jan 25, the town was closed to tourists, and over 12,000 visitors were evacuated within 24 hours.

He estimates the town's minsu have since lost over 300 million yuan, and the losses for other tourism industries like catering and shopping are even bigger.

"The greatest difficulty for us is the economic loss from closing and our human-resource loss. Our staff members are having a holiday, and whether they can return to work soon is subject to the epidemic situations in their respective hometowns," he says.

The central government has released preferential policies like tax reductions for small and medium-sized enterprises and self-employed businesspeople in various industries.

Major travel companies have also helped tourism businesses, including home-sharing platforms, through subsidies and preferential policies.

Airbnb China recently announced that it's using a US$10 million fund to support hosts over the next few years, among other beneficial measures.

(PHOTO PROVIDED TO CHINA DAILY)

They encourage hosts to rent out their listings by week or month, and offer online training to help them redesign their accommodations and learn about marketing during the epidemic.

"We will continue to invest in China and do all we can to support our community of hosts there. We have confidence in China's strong capabilities to win the battle," Airbnb's co-founder and chief strategy officer Nathan Blecharczyk says.

Starting from February, Alibaba's online travel-service provider, Fliggy, has waived service fees for merchants in Wuhan, including minsu owners, for six months and those in other regions for three months.

Fliggy recently announced that it's striving to help merchants on the platform use livestreaming and marketing.

Over 110 minsu owners on Fliggy recently established a livestreamers' alliance.

"Our livestream project allows merchants to build their brands and attract potential consumers to prepare for when people are ready to travel after the epidemic," says Xu Xiang, who's in charge of Fliggy's livestreaming.

(PHOTO PROVIDED TO CHINA DAILY)

Zhao from Shuanglang sees it as an opportunity.

"As our lodging business is idle, we're trying to promote the lifestyle of minsu and sales of local specialties using online short videos and livestreams," he says.

Yang Honghao, head of the China Tourism Academy's tourism industry institute, says the epidemic has affected all sectors of the industry.

He says the temporary closing of minsu also affects their suppliers, such as farmers who sell fresh vegetables to hosts in rural areas.

"Chinese tourists' demand for minsu will not change, but it will take time to restore the market after the epidemic. I think minsu in the countryside will recover earlier than that in the city," he says.

"After being quarantined at home for such a long time, many Chinese would be eager to encounter nature, fresh air and pretty scenery."

Contact the writer at xulin@chinadaily.com.cn