X
Check-in:
Check-out:
booking
Shenzhen 79F ~ 90F Thundershowers To 20km/h Weather Detail
News

Global tourism market picks up, Fosun Travel Group benefits from recovery and releases long-term value

Date:2020-06-10

Fosun Travel has become the biggest winner in the recovery of the tourism industry.

Sudden public health incidents pressed the "pause button" for the global tourism industry in 2020. As the inflection point of health events overseas, especially in Europe, gradually emerges, in order to resume tourism as soon as possible, many countries have recently launched targeted measures to promote tourists' holiday consumption.

Under the environment of full-speed recovery at home and abroad, tourism leaders are usually the biggest beneficiaries. As a result, Fosun Lvwen (01992), a leading tourism company with multiple brands, has also become a rare target in this recovery boom.

Overseas situation improves, tourism accelerates recovery

Recently, the situation of public health incidents in some countries and regions has tended to ease. Many countries have taken actions to gradually relax restrictive measures, support the recovery of their tourism industry, and restart the economy. As a result, the global tourism industry is expected to gradually come out of the trough.

A few days ago, the European Commission issued a guidance suggesting that member states gradually lift travel restrictions, and member states with similar health incident prevention and control situations may adopt a phased approach to reopen the border. Most EU countries agreed to reopen the EU's internal borders before June 15th, and people can travel freely within the EU.

The German government announced that it will reopen Germany's borders with other Schengen countries as early as June 15th, allowing people to move freely. European airlines such as Lufthansa and Ryan also plan to resume flights in some regions from June to July.

The Italian government also said that all domestic and international flights at all airports can be reopened on June 3; in a total economic package of 55 billion euros, 4 billion euros will be invested to help the tourism industry.

Recently, Air France announced a timetable for the gradual recovery of flights. Its goal is to increase traffic to 15% by the end of June, and resume more than 100 destinations. In addition to Marseille, Nice and Toulouse, France will also reopen the routes of Biarritz, Brest, Montpellier or Lyon and Corsica. The frequency of overseas flights will also increase, especially flights to Southern Europe such as Greece, Spain and Portugal. Air France is currently preparing for the reopening of the EU’s internal borders on June 15.

It is worth noting that the French Health Agency announced the suspension of health events on the 6th-7th. This is the first time that public health events have been suspended in France. Public opinion believes that this indicates that the situation in France is under control.

In addition to the European region, Japan fully lifted the state of emergency on May 25, and plans to gradually relax its travel restrictions and implement a tourism stimulus plan by the end of July; and Hong Kong Airport will resume connecting services on June 1.

Various signs show that various industries that have been stagnant for months have gradually returned to their original rhythm, and tourism itself is also one of the pillar industries of many overseas countries. It will inevitably be the first to restart as the economic environment improves.

Resorts restart China region takes the lead in picking up

As the core division of Fosun Travel, ClubMed is the world's largest one-price all-inclusive resort group with a long history of operation. As of the end of 2019, Club Med operated a total of 66 resorts, including 38 resorts in Europe, Africa and the Middle East (including a cruise ship), 12 resorts in the Americas, and 16 resorts in the Asia-Pacific region (including those in China) 7 resorts).

Resorts in various regions are compatible with local resources and form complementary advantages. These resorts are located in 25 countries or regions. Among them, most of the resorts are mountain resorts in Europe and sunshine resorts in the Americas. Relying on the advantages of their own resources, they have opened various complementary resorts, greatly weakening the single season and single Regional impact on performance.

In 2019, Fosun Travel will continue to strengthen its globalization layout in a forward-looking manner, diversify regional business risks, and achieve good results in all three regions. Europe, Africa, the Middle East/Americas/Asia-Pacific region achieved revenue of 84.1/24.1/23.9 100 million yuan. Among them, Brazil, the United Kingdom, and Australia's 2018-19 performance growth was gratifying, and the two-year compound growth rate of revenue reached 15%/16.8%/22.5%.

In the first quarter of 2020, the first recovery of China's tourism market clearly gave Fosun Travel a glimmer of light in the industry's trough. In May, Club Med announced the gradual reopening of all Chinese resorts including the exquisite one-price all-inclusive series. From April to May, in addition to the reopened Club Med Joyview Anji Resort and Yanqing Resort, Club Med will also open Club Med exquisite one-price all-inclusive series Guilin Resort, Sanya Resort and Club Med Joyview Beidaihe Gold Coast Resort.

Zhitong Finance APP was informed that in terms of the performance of the "May Day" Mediterranean Club, Anji and Yanqing were sold out, and the occupancy rate in Guilin exceeded 50%. From this point of view, the status of Fosun Lvwen Kaicun Village and the recovery of operations are in line with market expectations, including indicators such as occupancy rate and room unit price recovery exceeding expectations.