Strong Rebound in Tourism Demand, Core Business Grows Across the Board, Fosun Tourism’s Tourism Operations Business Volume Surged Nearly 40% in Q1 2023
HONG KONG, Apr 21, 2023 – (ACN Newswire via SEAPRWire.com) – Fosun Tourism Group (“Fosun Tourism” or the “Group”, HKSE Stock Code: 01992), a world-leading leisure-focused integrated tourism group, is pleased to announce its operational performance for the three months ended 31 March 2023 (“the first quarter of 2023”)(1) . Benefiting from the overall growth of its core business, the Group’s unaudited profit attributable to shareholders of the parent company multipled by several times in the first quarter of 2023.
For the first quarter of 2023, the business volume(2) of the Group’s resort, Atlantis Sanya, operation of vacation asset management center(3) and other tourism and leisure services increased by approximately 37.2% to approximately RMB5,888.9 million on a constant exchange rate basis, from approximately RMB4,292.4 million in the same period of 2022.
Benefiting from the overall relaxation of travel restrictions worldwide and the effective implementation of the Group’s strategy, Club Med’s business volume, on a constant exchange rate basis, for the first quarter of 2023 was RMB5,004.2 million, representing an increase of approximately 44.2% and 21.8% as compared with the same period in 2022 and 2019, respectively. In the first quarter of 2023, Club Med recorded a significant improvement in its unaudited net profit for the first quarter of 2023 compared with the same period in 2022 and 2019, largely attributable to continuous business growth in the EMEA and Americas markets and a strong recovery in the Asia Pacific region.
In the first quarter of 2023, Club Med’s capacity increased by approximately 19.7% compared with the same period of 2022 and recovered to approximately 99.4% of the level recorded in the same period of 2019. The global average occupancy rate reached 68.9%, an increase of approximately 6.8 percentage points compared with the same period of 2022, and just 1.5 percentage points lower than the same period of 2019. The average daily bed rate was approximately RMB1,941.6, representing an increase of approximately 9.3% and 30.6% as compared with that of the same period in 2022 and 2019, respectively.
Due to the gradual lifting of travel restrictions in various countries, the Group’s global business has grown rapidly. As at 8 April 2023, the cumulative bookings for Club Med for the six months ending 30 June 2023 (“the first half of 2023”), expressed in terms of Stay, Tours and Services business volume (“BV STS”) at a constant exchange rate basis, increased by approximately 34.2% compared with the first half of 2022 as at 8 April 2022, and even increased by approximately 24.9% compared with the first half of 2019 as at 8 April 2019. In addition, as at 8 April 2023, the cumulative bookings for the six months ending 31 December 2023 (“the second half of 2023”), expressed in terms of BV STS at a constant exchange rate basis, increased by approximately 13.8% compared with the second half of 2022 as at 8 April 2022, and climbed by approximately 16.2% compared with the second half of 2019 as at 8 April 2019.
Earlier this month, Henri Giscard d’Estaing, Vice Chairman and Co-Chief Executive Officer of Fosun Tourism Group and Chief Executive Officer of Club Med, participated as a representative of French entrepreneurs in a delegation of more than 60 senior executives of major French companies led by French President Emmanuel Macron to China. He said that French companies are eager to work with China, which boasts great prospects as the second-largest market for Club Med worldwide. The Group will continue to innovate and is committed to providing the best services and experiences to Chinese families and enterprises alike. The Group is aiming to open 17 new resorts and spaces by 2025, seven of which will be located in China. The Group’s first city resort is also expected to open in Nanjing later this year.
Benefiting from the strong demand released following the resumption of domestic tourism in China, Atlantis Sanya’s business volume reached RMB526.6 million during the first quarter of 2023, an increase of approximately 38.7% against the same period of 2022. The Group participated in the China International Consumer Products Expo (CICPE) held in Haikou, Hainan Province between 10 and 15 April with its Club Med and Atlantis Sanya projects. This was the third consecutive year that the Group took part in the CICPE, demonstrating its strong confidence in its own business and the recovery of China’s consumer market.
In the first quarter of 2023, Atlantis Sanya recorded approximately 1.8 million visits, a year-on-year increase of approximately 61.9%. The average daily room rate reached approximately RMB2,570.8, a decrease of 9.9% compared with the last corresponding period, mainly due to an increase in the proportion of the Meetings, Incentives, Conferencing & Exhibitions business. The average occupancy rate was approximately 94.2%, representing an increase of 31.6 percentage points compared with the same period in 2022. This year marks the fifth anniversary of Atlantis Sanya. It will focus on its two core strategies: “A family entertainment hub and a destination offering a wide range of international cuisine” and will continue to promote the iteration and updating of its different products. The “Pink Night Celebration for the 5th Anniversary of Atlantis”, to be held on 28 April, will feature a series of brand events, including the “5th Anniversary Super Shopping Festival”, to confidently and enthusiastically welcome tourists back to Hainan.
Similarly, Lijiang Club Med Resort recorded an operating business volume of RMB20.9 million in the first quarter of 2023, an increase of approximately 130.4% compared with the same period in 2022. In the first quarter of 2023, the number of visitors to Lijiang Club Med Resort was approximately 40,000, an increase of 337.7% compared with the same period in 2022.
The first Labor Day holiday after the pandemic will begin soon. According to data released by FlightAI, the search index for domestic travel is slightly higher this year than in 2019, while flight bookings exceeded those of the same period in previous years, indicating that the momentum of post-pandemic “revenge” travel continues. Moreover, the popularity of flight ticket searches for outbound trips during the Labor Day holiday this year was 30% higher than that of 2019. Currently, the booking figures for the Labor Day holiday shown by different businesses under Fosun Tourism are relatively encouraging and the Group is well prepared for the holiday. The Group is confident that it will provide high-quality services to visitors in the upcoming travel peak period.
Mr. Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Tourism, said, “Travel demand has grown rapidly since the beginning of this year and a strong rebound is expected in the second quarter of this year. Meanwhile, the post-pandemic era has created important opportunities for urban vacations. In the future, Fosun Tourism will continue to adhere to the latest strategies devised by the Group to strengthen its global layout, and explore more resort and hotel opportunities in China to seize first-mover advantages in the ‘vacation era’.”
About Fosun Tourism Group (Stock Code: 01992.HK)
Fosun Tourism Group (also known as Fosun Tourism or “FOSUN HOLIDAY”, Stock Code: 01992. HK), is one of the world’s leading leisure-focused integrated travel groups. lt is a major part of Fosun’s “Happiness Ecosystem”, one of its four strategic business units – Health, Happiness, Wealth and Intelligent Manufacturing. Through its mission of “Vacation brings a better life”, it strives to lead the leisure lifestyle and create a world’s leading leisure tourism ecosystem for families.
The Group’s brands and products include world-leading providers of premium “all- inclusive” resorts. such as Club Med, which operates more than 60 resorts worldwide, Sanya Atlantis, a one-stop ocean-themed high-end tourism complex, Taicang Alps Resort and Lijiang Club Med Resort, two one-stop international leisure vacation destinations and etc.
* Frost & Sullivan, an independent international research & consulting firm
(1) Figures herein were unaudited.
(2) Business volume represents total sales of resort, Atlantis Sanya, operation of vacation asset management center and other tourism and leisure services, whether or not the resort is owned, leased or managed.
(3) Vacation asset management center represents Taicang and Lijiang projects.
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