Airbnb Inc. is shutting its operations in China, choosing to focus instead on outbound Chinese tourism as the country continues its aggressive approach to containing Covid-19.

The San Francisco–based company will stop offering rental homes and experiences in the country this summer, according to a person familiar with the matter. But it will still maintain a presence in China, with an office in Beijing, as the company expects outbound tourism to improve when restrictions loosen. Airbnb launched its China operations in 2016, and the pandemic added to the difficulties and complexities of operating within the country, the person said.

Because rentals in China account for just 1 percent of Airbnb's revenue, the company sees a bigger opportunity in outbound tourism from China—in particular, travel in the Asia-Pacific region.