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Fosun Tourism sees acquisition opportunities amid virus outbreak

03/18/2020| 11:21:26 AM| ChinaTravelNews 中文

The company said it believes that the demand of the global tourism industry will continue to rise in the long run.

Fosun Tourism's operation volume increased by 8.9% year-on-year in 2019 to RMB14,595.0 million. Adjusted EBITDA increased by 79.9%1 from RMB2,073.0 million in 2018 to RMB3,729.41 million in 2019, with adjusted EBITDA margin increased by 8.8 percentage points to 21.5%. The resort business of Club Med has increased by 5.2% year-on-year to RMB13.2 billion in business volume.

In face of the COVID-19 outbreak, the company said it believes that the demand of the global tourism industry will continue to rise in the long run. Fosun said the epidemic allows it to review three major opportunities in the future tourism industry: 

"First, the transformation and upgrade of the tourism industry will accelerate, and the transformation from sightseeing to leisure tourism will further accelerate as well...Second, the industry will undergo a round of reshuffle and enterprises with solid foundation will have more opportunities in mergers and acquisitions. Third, business intelligence and online operation will be more widely used in tourism companies."

Fosun's first tourism destination project Atlantis Sanya recorded an "encouraging performance" in its first year of operation. The business volume reached RMB1,312.1 million. In 2019, average daily room rate increased by 13.1% year-on-year. Occupancy rate increased from 58.0% in 2018 to 68.5% in 2019 and number of visits reached around 5.2 million.

In November 2019, Fosun acquired the brand name of Thomas Cook, one of the leading travel group with 179 years of history, after the brand collapsed last September.

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TAGS: Fosun Tourism | Club Med | Atlantis Sanya
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