Core Viewpoint - The traditional business model of Xi'an's tourism and hospitality industry is facing structural crises, as evidenced by the continuous losses of leading companies despite high visitor numbers and revenue potential [2][5][9] Financial Performance - In the first half of 2025, the three major tourism companies in Xi'an are expected to collectively incur losses exceeding 100 million yuan, with Xi'an Tourism and Xi'an Catering projecting losses of 49 million to 69 million yuan and 48 million to 60 million yuan respectively [3][5] - Xi'an Catering's losses have narrowed compared to the previous year, while Qujiang Cultural Tourism is experiencing a significant increase in its non-recurring losses [3][4] Industry Challenges - The industry is grappling with a reliance on ticket sales and traditional business models, leading to a weak profit conversion from high visitor traffic [2][6] - The operational costs of major attractions are high, and the inability to effectively convert visitor traffic into secondary consumption and derived income is a persistent issue [2][6] Resource Dependency - Despite holding monopolistic resources in the tourism sector, the companies are trapped in a cycle of continuous losses, revealing the limitations of their resource-dependent growth strategies [5][9] - The companies have diversified into various sectors such as oil, real estate, and healthcare, but this shift has led to a deviation from their core business and weakened their operational focus [5][6] Market Dynamics - The emergence of new consumer trends is reshaping market rules, with traditional brands struggling to adapt to the preferences of younger consumers [6][7] - The competitive landscape is intensifying, with online travel agencies (OTAs) disrupting traditional distribution channels, further complicating the companies' ability to maintain profitability [6][7] Strategic Responses - Qujiang Cultural Tourism is initiating a "intellectual property strategy transformation" to monetize its core attractions through IP registration and collaboration with brands [7] - Xi'an Tourism is focusing on expanding its hotel segment, aiming to double its hotel numbers and enhance revenue through capital operations [7][8] Future Outlook - The companies are at a critical juncture, needing to break free from the cycle of resource dependency and inefficient expansion to establish genuine market competitiveness [9] - The success of their transformation efforts will depend on their ability to innovate and adapt to changing consumer demands while overcoming institutional inertia [9]