BEIJING - Beijingers are demonstrating their passion for the Olympics by staying home, and that is proving to be bad news for outbound tourism, industry insiders have told China Daily.

Lin Kang, deputy general manager of the outbound department of the China International Travel Service (CITS), said, "The outbound sector saw a slight increase in July, but in August it is down by 20-30 percent on last year."

July and August are generally the peak months for outbound travel.

Several small-scale travel agencies have organised just two or three overseas travel groups this month, the Shanghai-based National Business Daily reported.

The main reason is Olympic fever, which has gripped China this summer, Lin said.

"Many customers cancelled their plans to travel abroad in favour of working as volunteers or simply staying home to watch the Games," he said.

But there are other reasons, such as a reduced number of tickets, fewer business travellers and the depressed stock market, insiders have said.

Zhang Qingzhu, from CCT International Travel Service, said airlines have reserved some seats on international flights for Olympic officials and athletes, which has cut the number on the market.

Furthermore, workers and officials at large state-owned companies and government departments - major consumers of incentive tours and business trips - have been ordered to "stay put" during the Games to ensure the city runs smoothly, Chen Xiaobing, general manager of Beijing Caissa International Travel Service, said.

Olympic fever has also hit business travel into and out of Beijing, leading to price cuts on many domestic flights.

"The day of the opening ceremony was the watershed for price plunges this month," Zhang Wei, an air ticket manager from online travel firm Ctrip.com, said.

Passengers flying from Shanghai to Beijing on Aug 7 and 8 could get discounts of between 10 and 30 percent. But in the week after that, discounts of up to 60 percent were being offered, he said.

The good news for customers is that as ticket prices have fallen, tour firms have also cut the cost of their packages.

Zhang Lingjie, deputy manager of the domestic department of CITS, said the prices of almost all domestic tours - even to popular places like Yunnan and Hainan - have been cut.