Airbnb plans to end its travel and experience listings in China as the resurgence of Covid-19 in the country has brought domestic tourism to a standstill. The US vacation rentals platform will focus instead on outbound travel from the country.

Airbnb China will no longer accept bookings from July 30, the homestay unicorn said today. All reservations for after that date will be cancelled and fully refunded. No mention was made of if or when the California-based firm would start accepting mainland bookings again.

Airbnb is facing operational challenges in China due to the high costs of its domestic tourism business, the company said. The recent coronavirus outbreaks have strangled the travel sector and weakened the synergy between Airbnb’s in-country and outbound tourism businesses.

The suspension will not affect overseas bookings, Airbnb said. Outbound tourism is expected to fully recover as the pandemic wanes globally and China eases its exit and entry rules, it said.

Airbnb will waive service fees for all hosts and Airbnb Adventurers, who are participants in a travel experiences venture run by the firm, on local bookings until July 29 as compensation for the inconvenience caused, said Nathan Blecharczyk, company co-founder and chairman of Airbnb China. Airbnb will help them with a smooth transition to other platforms, he added.

Airbnb’s withdrawal from the China market is good news for rival Tujia, which is setting up a green channel to help Airbnb’s 150,000 China hosts shift over to its platform as soon as possible, the Beijing-based company said today.

Over 25 million people have stayed in Airbnb homestays since it started business in China in 2016, according to the company’s own statistics.