Club Med's recovery accelerates, Net profit turns around strongly, Fosun Tourism's business volume of tourism operation for the first three quarters of 2022 surges 110%

20 October 2022– Fosun Tourism Group (“Fosun Tourism” or the “Group”, Hong Kong Stock Exchange Stock Code: 1992), a world-leading leisure-focused integrated, tourism group, announced its operating performance[1] for the nine months ended 30 September 2022 (the "first three quarters of 2022"). In the first three quarters of 2022, Club Med’s net profit sharply recovered and the Group’s profit attributable to shareholders of the parent company also improved substantially despite the negative impact of the COVID-19 pandemic (the ‘‘Pandemic’’) in China as compared to the same period of 2021.

In the first three quarters of 2022, the business volume[2] of resorts, tourism destination operations, and tourism and leisure services and solutions (collectively referred to as “tourism operation”), amounted to approximately RMB11,252.6 million (at a constant exchange rate), an increase of approximately 110.4% from approximately RMB5,348.5 million in the same period in 2021.

Although the Pandemic continues to spread across the globe, thanks to the lifting of travel restrictions in certain countries and the right business model and strategy the Company adopted, for the first three quarters of 2022, the business volume of Club Med was approximately RMB9,135.3 million (at a constant exchange rate). This represents an increase of approximately 145.7% compared to the same period of 2021 and a recovery to approximately 96.0% of the same period of 2019. In addition, benefits from sequential and improved recovery, execution of the right business strategy and effective cost savings significantly improved the net profit of Club Med compared to the same period of 2021, and was even better than that of the same period of 2019.

During the first three quarters of 2022, the capacity of Club Med increased by approximately 78.5% compared to the same period of 2021. It has recovered to approximately 91.0% compared to the same period of 2019. Global Average Occupancy Rate by Bed reached approximately 61.0%, increasing by approximately 7.0 percentage points compared to the same period of 2021. This represented a difference of approximately 5.0 percentage points compared to the same period of 2019. The Average Daily Bed Rate was approximately RMB1,438.4 representing an increase of approximately 19.2% and 19.2% compared to the same period in 2021 and 2019, respectively.

The gradual lifting of travel restrictions in various countries, has resulted in the Group’s accelerated recovery of its businesses outside Mainland China. As of 8 October 2022, the cumulative bookings for Club Med for the six month ending 31 December 2022 (the “second half of 2022”), expressed in business volume of Stay, Tours and Services (at constant exchange rate), increased by approximately 38.7% compared to that for the second half of 2021 as of 8 October 2021. It also increased by approximately 16.0% compared to the second half of 2019 as of 8 October 2019. In addition, as of 8 October 2022, the cumulative bookings for the six months ending 30 June 2023 (the “first half of 2023”), expressed in business volume of Stay, Tours and Services (at constant exchange rate), increased by approximately 27.1% compared to the first half of 2022 as of 8 October 2021. It increased by approximately 18.6% for the first half of 2019 compared to the same period as of 8 October 2018.

Impacted by the outbreak of the Omicron Variants in China since March 2022 across the country and the lockdown of Sanya from early August to late September in 2022, the Groups’ Atlantis Sanya recorded a business volume of approximately RMB747.1 million during the first three quarters of 2022. The number of visits was approximately 2.4 million and the average occupancy rate reached about 44.5%. For the two months ended 28 February 2022 and the month of July 2022, Atlantis Sanya experienced business volumes of RMB362.1 million and RMB215.1 million, respectively. Strong demand continued when the Pandemic remained under control.

In the first three quarters of 2022, Thomas Cook China recorded a business volume of approximately RMB281.6 million, up approximately 5.1% year-on-year. Thomas Cook UK recorded a business volume of approximately RMB1,023.8 million, representing a year-on-year growth of approximately 340.4%.

According to the Data Center of the Ministry of Culture and Tourism of China[3], the National Day holiday in 2022 generated 422 million domestic tourists. This represented a decrease when compared to the same period in 2021 and 2020. It was 60.7% of the number in the same period of 2019. In addition, the domestic tourism revenue amounted to RMB287.21 billion, down from the same periods of 2021 and 2020, and representing 44.2% of the same period in 2019 on a comparable basis. The number of domestic visits in the seven-day National Day holiday in 2022 was close to 70% higher than that in the seven-day Chinese New Year holiday in 2022.

Despite the decrease in domestic tourists and revenues during the National Day holiday, the demand for high-end hotels remained robust as local vacations and short-haul travel have become the preferred mode of travel for consumers. Club Med Joyview benefits from this trend as one of short-haul travel experiences of the Group. It performed well during the National Day holiday, particularly in Jiangsu, Zhejiang Province and Beijing, which were less affected by the travel policies related to the Pandemic. The Average Occupancy Rate of Club Med Joyview Anji, Yanqing and Thousand Islands Lake resort was more than 70%, and nearly fully booked on 2 and 3 October. After the opening of the second phase (Lijing Building), Club Med Joyview Yanqing Resort has expanded its accommodation capacity and high-quality room supply, with RevPor of more than RMB2,000.

Mr. Qian Jiannong, Chairman and CEO of Fosun Tourism Group, said, “The impact of the Pandemic on the tourism industry has gradually eased and most regions have started recovering. The strong momentum of the Club Med business gives us full confidence in future development prospects. We will make every effort to seize the opportunities to actively promote the development of our business globally and strive to create a happier lifestyle for consumers."

[1] The data therein have not been audited.

[2] Business volume represents total sales of resort and hotel services, tourism destination operations and other tourism-related services and solutions, whether or not owned, leased or managed.

[3] Ministry of Culture and Tourism of China: https://www.mct.gov.cn/whzx/whyw/202210/t20221007_936291.htm