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Tourism industry was one of the important sectors of world economy before COVID-19. This paper intends to measure the perception of Chinese tourists with reference to the spread of COVID-19 in China. The crowding perception, xenophobia and ethnocentrism are the measurement indicators of the study. Five-point Likert scale is used to measure the relationship between the dependent and independent variables. Kaiser Mayer Olkin test is conducted for the validity and Chronbach’sAplha is used for measuring the reliability of the items of the questionnaire. Regression analysis is the measuring tool for the strength of the relationship of the constructs. Questionnaires have been filled from 730 Chinese respondents. Results show that crowding perception, xenophobia and ethnocentrism cause the spread of COVID-19 during the epidemic. Hence, the tourism industry in China is adversely affected by COVID-19. The crisis management stakeholders of the country need to adopt policies in order to reduce the spread of COVID-19.The tourism sector needs to provide confidence to the tourists. It will provide ground for the mental strength of the tourists in China.