Core Viewpoint - The tourism industry in Guilin is facing significant challenges despite the overall increase in domestic tourism during the "May Day" holiday, with Guilin Tourism Company experiencing continued financial losses and a decline in revenue and profit margins [1][4][6]. Financial Performance - In Q1 2024, Guilin Tourism reported an operating income of 82.63 million yuan, a year-on-year decrease of 6.6%, and a net profit loss of 130.8 million yuan, worsening from a loss of 124.8 million yuan in the same period last year [4][6]. - For the full year 2024, the company achieved an operating income of 432 million yuan, down 7.58% year-on-year, with a net profit loss of 204 million yuan, a staggering decline of 1830.7% compared to the previous year [4][6]. - Since 2020, the company has accumulated losses nearing 1 billion yuan [4]. Market Conditions - Despite the natural beauty of Guilin, the company struggles with profitability due to increased competition in the regional market and external factors such as severe flooding [6][11]. - The overall tourism market in Guilin saw a total of 37.43 million visitors in Q1 2024, a 14.68% increase, generating total tourism revenue of 48.19 billion yuan, up 15.53% year-on-year [11]. Industry Challenges - The tourism sector in Guilin is emblematic of broader issues within the industry, including a reliance on ticket sales and a lack of diversified tourism offerings [6][19]. - The company has faced criticism for poor service quality, leading to a decline in its reputation, compounded by aggressive competition from neighboring regions [10][11]. Future Prospects - The Chinese government has approved plans for the development of Guilin as a world-class tourist city, which includes enhancing international flight connections and improving the overall tourist experience [14][20]. - There is a push for Guilin to diversify its tourism offerings beyond traditional sightseeing to include cultural, wellness, and experiential tourism [19][20].