Fosun Tourism's China Business Grows Against the Downside Industry Trend During New Year Holiday Operation Shows Strong Resilience Amid Pandemic in China

 (6 January 2022, Hong Kong) – Fosun Tourism Group (“Fosun Tourism” or the “Group”, HKEX stock code: 1992), one of the world’s leading leisure-focused integrated tourism enterprises, announced that, during the 2022 New Year[1] holiday, amid the pandemic, its core businesses in China, namely Club Med China Resorts, Atlantis Sanya and Thomas Cook Lifestyle Platform, all outperformed the industry and exceeded the pre-pandemic levels as for their performance indicators including Business Volume, occupancy rate and Average Daily Bed Rate.

As the pandemic resurges in Mainland China, various places have tightened prevention and control measures and that has dealt a blow to the tourism industry in peak travel seasons such as the Christmas and New Year holidays. According to the Ministry of Transport of the People's Republic of China[2], a total of 86.185 million passengers traveled by rail, highways, waterways and civil aviation during the three-day New Year's Day holiday, down 18.2% year-on-year. However, callings on people to "stay put" in various regions have helped stimulate "local tours" and "nearby travel" tourism. In addition, the Beijing 2022 Winter Olympics, which will start on 4 February, has helped boost sentiment for ice-and-snow travel. According to data from a number of travel platforms online, short-haul ice-and-snow travel was most sought-after in the 2022 New Year long weekend. Fosun Tourism has continued to offer high-quality and safe travel experiences to tourists whilst upgraded product offerings and leisure contents, showing strong resilience and the ability to deliver outstanding business performance.

Club Med China Resorts have been very popular with tourists all year round. Its Business Volume during the 2022 New Year holiday, though subject to recent impact of the pandemic, was 50% higher than that of pre-pandemic in the New Year in 2020[3]. The three-day average occupancy rate of Club Med China Resorts during the New Year holiday also significantly exceeded that in the New Year in 2020. Driven by the strong demand for ice skiing and island stay during holidays, the occupancy rate of Club Med Beidahu Resort exceeded 90% on New Year’s Day 2022. Club Med Sanya also recorded an occupancy rate of near 90%. Moreover, Club Med Joyview met the consumer demand for short-haul trips in the festive period. Club Med Joyview Yanqing Beijing and Club Med Joyview Gold Coast both recorded an over 90% occupancy rate on New Year’s Day.

The theme park economy has seen a new upsurge in the past year. As a one-stop ocean-themed integrated tourism destination, Atlantis Sanya, enjoying strong word-of-mouth and offering ever-enriching innovative content, has become the preferred holiday destination to many tourists. Thanks to improved brand awareness and the resorting launching a wide range of activities, the business volume of Atlantis Sanya during the New Year holiday in 2022 saw a 12% growth against the pre-pandemic 2020 New Year holiday. Non-accommodation related revenue rose by 13.1%. Total number of visits reached 43,000, restoring to 90.7% of the number of pre-pandemic in the New Year in 2020. Its occupancy rate reached 82.7% and average daily room rate was RMB2,974. Furthermore, from 25 December, the Show C at the resort has started staging brand new performance, featuring including spectacular high-wire acts plus mesmerising water ballet, to give audience an upgraded audio-visual feast.

The Thomas Cook Lifestyle Platform is a one-stop scenario-based platform focusing on leisure lifestyle products (“TC China”). By the end of the New Year holiday, the APP cumulatively recorded approximately 2.55 million downloads. For the period from 1 January to 3 January 2022, the Business Volume of the platform increased by 29.5% compared to the same period in 2021[4].

With the 2022 Winter Olympics around the corner and public interest in winter sports growing in recent years, Fosun Tourism has actively responded to the winter tourism development trend and continued to expand its ice-and-snow business. By 2023, six to eight Club Med ski resorts are expected to be in operation in northeast Asia. In China, the Club Med Changbaishan Resort, which is in the Changbaishan International Ecotourism Demonstration Area and a half hour ride from the Changbaishan Airport, will open this month. And, construction of the east China-scale themed ski field in Club Med Joyview Taicang Resort is progressing steadily with full operation expected in 2023.

Data reference:

[1] New Year holiday in 2022: 31 December 2021 to 2 January 2022

[2] People.cn: http://finance.people.com.cn/n1/2022/0104/c1004-32323173.html

[3] New Year holiday in 2020: 31 December 2019 to 2 January 2020

[4] The Thomas Cook Lifestyle Platform was launched on 18 July 2020. Comparable data for the same period in 2020 is not available. Therefore, the same period in 2021 is used for comparison