When will the impact of Guilin’s tourism industry recover in 2020?

Guilin’s landscapes are unparalleled and has always been my country’s most famous tourist destination. The tourism industry has made a huge contribution to local economic development and attracts a large number of tourists from all over the world every year. However, this year’s epidemic has It has caused heavy damage to Guilin's tourism industry.

Guilin Tourism (000978) issued an announcement on the evening of February 3. According to the Ministry of Culture and Tourism, the Culture and Tourism Department of Guangxi Zhuang Autonomous Region, and the Guilin Municipal Culture, Radio, Television and Tourism Bureau, the company has issued a notice on the pneumonia epidemic caused by the new coronavirus infection. In order to do our best to prevent and control the epidemic in accordance with the relevant requirements of prevention and control, starting from January 26, except for the Lijiang Waterfall Hotel, Qintan Passenger Terminal and some taxis, the company's other businesses have suspended operations. The suspended operations include all the company's businesses Scenic spots (Two Rivers and Four Lakes, Yinzi Rock, Fengyu Rock, Longsheng Hot Spring, Hezhou Hot Spring, Zijiang Danxia, ??Danxia Hot Spring Scenic Spot) and Li River Cruise Passenger Transport Business, etc.

Guilin Tourism stated that the company is mainly engaged in tourism services and tourism service-related businesses. Its main businesses include cruise ship passenger transportation, scenic spot tourism business, hotels, road travel passenger transportation, taxi business, etc. The suspension of operations of the above-mentioned businesses will have an adverse impact on the company's net profit for the current year.

It is currently difficult for the company to determine the specific time for the resumption of suspended operations, and it is difficult to estimate the impact on the company's net profit for the year.

In addition, the Guilin Eternal Scenery Area of ??Guilin Lijiang Eternal Love Performing Arts Development Co., Ltd., a joint-stock subsidiary of Guilin Tourism, the Longji Scenic Area of ??Guilin Longji Tourism Co., Ltd., and the main business of Jinggangshan Tourism Development Co., Ltd. are also affected by the Operations are suspended due to the epidemic.

Guilin Tourism stated that the company will actively respond and do its best to mitigate the adverse impact of this epidemic on the company. Specifically, Guilin Tourism will continue to strengthen internal management, strengthen employee knowledge and skills training, strengthen systematic scientific management, and reasonably control costs;

Upgrade scenic spots and hotels to improve the quality of scenic spots and hotels and improve services quality; speed up the construction and implementation of the new cultural tourism experience project "Jing SHOW·Vivid Lotus"; speed up the non-public issuance of stocks; make relevant preparations for the recovery of tourism business after the epidemic is over; actively strive for reasonable policy support, etc.