Atlantis Sanya of Fosun Tourism recorded a revenue of RMB150 million during the Chinese New Year vacation

25 February 2019, Atlantis Sanya, reported a strong operating performance during the Chinese New Year vacation period (16 days in total, i.e. from 4 February 2019 to 19 February 2019, the “Relevant Period”). During the Relevant Period, Atlantis Sanya recorded unaudited operating revenue of RMB150.4 million, including room revenue of approximately RMB77.8 million with Occupancy Rate by Room of approximately 93% and other operating revenue related to the Aquarium (the Lost Chambers Aquarium at Atlantis Sanya), the Waterpark (the Aquaventure Waterpark in Atlantis Sanya), food and beverage and other services of approximately RMB72.6 million. The total unaudited operating revenue during the Relevant Period accounted for approximately 76.8% of unaudited operating revenue for the period from 15 February 2018 to 30 June 2018. Atlantis Sanya had its soft opening on 15 February 2018 and officially opened on 28 April 2018.

Sanya's tourism market demonstrated two-tiered segmentation during the Chinese New Year vacation

Sanya's tourism market presents a trend of two-tiered segmentation. The number of visitors in traditional scenic spots declined in varying degrees. Of which: The number of visits to traditional scenic spots such as West Island (32,500, -34.63%), Ultima Thule (194,800, -14.35%) and Fairyland (34,700, -19.81%) declined year-on-year. The number of visitors to Luhuitou (54,600, +5.85%) and Wuzhizhou Island (96,000, +6.24%) increased, but the year-on-year growth rate has slowed down.

The new tourism complex, such as Sanya International Duty-Free City, received 311,000 visits, an increase of 20% compared to 2018. Atlantis Sanya, a tourism destination under Fosun Tourism Group (01992.HK), received a total of 119,000 visits, including 21,000 staying visits and 98,000 non-staying visits during Chinese New Year vacation; Sanya Haichang Fantasy Town, a theme park under Haichang Ocean Park(02255.HK) received 118,700 visits.

As younger, higher-income consumers with pursuit of more individualized experiences are gaining increasing prominence in the composition of tourists, these sophisticated tourists are driving the structural differentiation of Sanya tourism destinations.

The advantages of FOLIDAY Ecosystem

Wang Wenping, Fosun Tourism Group Chief Financial Officer, said: “The strong operating performance of Atlantis Sanya during the Chinese New Year vacation benefited from the following reasons: First of all, the tourism market in Sanya is experiencing structural evolution, and the demand of mid-to-high-end market is strong. Secondly, as the symbol of Sanya Tourism 3.0, Atlantic has a unique positioning in the leisure industry and is a popular tourist attraction. In addition, the spectacular carnival shows at Atlantis Sanya Waterpark before the New Year's Eve and Fanxiu's "The C" during the Chinese New Year vacation, have greatly enhanced the vacation experience of visitors.”

The stellar performance of Atlantis Sanya served as a proof of the success of the FOLIDAY Ecosystem. Qian Jiannong, Fosun Tourism Group Executive Director and Chief Executive Officer, said in an interview: “Fosun Tourism's subsidiaries no longer fight alone, they can now empower each other by joining FOLIDAY Ecosystem.” Taking Club Med as an example, the luxury resort reported an operating loss of 95 million RMB when Fosun Tourism took over Clud Med in 2015, but the resort operation turned into profit in the second year after Fosun Tourism’s takeover, achieving 470 million RMB in operating profit in 2017. Similarly, what makes Atlantis Sanya different from Dubai’s Atlantis is FOLIDAY's integrated online and offline travel agency platform and its global customer resources, which can boost the flow of visitors. With the opening of FanXiu's "The C" during the Chinese New Year vacation, the new attraction will greatly enhance the experience of Atlantis as a one-stop resort.

Fosun Tourism Ecosystem consists of three business segments, including the resort operations of Club Med, a world-renowned French leisure tourism and resort group acquired by Fosun Tourism Group in 2015, and Club Med Joyview, launched in 2018 for the fast-growing Chinese market; as well as the development and management of tourism destinations, such as Atlantis Sanya; and scenario-based vacation services and solutions.