China's more established social constraints to fight its latest Covid-19 outbreak, now in its fourth week and including more than a dozen cities, are hitting the services sector especially travel and hospitality in the world's second-largest economy. China has abstained from full lockdowns of major cities such as those seen during the early days of the COVID-19 outbreak in Hubei province, to avoid totally paralyzing the economy.

"The current wave has led to the re-imposition of much tighter social distancing measures, which would significantly hurt the transport, tourism, and other service sectors," Chinese analysts wrote in a note on Wednesday. "We now expect full recovery of the service sector to be further delayed to the fourth quarter." said Ding, who operates a 15-room lodge in the western highlands of Sichuan province, said she had expected an occupancy rate of at least 80% on weekdays between late July and early August. But with eight local infections detected in Sichuan, the actual occupancy rate has been 20%-30%, she told the media.

China reported 83 new locally transmitted cases for Aug. 10, the health authority reported on Wednesday, bringing the cumulative number of new infections in the past week to 583. That was an increase of 85.1% in the total number of local cases from a week earlier. The rate is almost unchanged from the 87.5% surge seen the previous week, which officials say has been mainly driven by the highly transmissible Delta variant.

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