Club Med owner Fosun Tourism is boosted by Chinese tourists, reports US$69.5 million first-half profit
- Effects of slowing global economy not felt ‘very strongly’ by tourism industry in China, chairman says
- Revenue of Club Med resorts rises by 5 per cent to 6.9 billion yuan
Club Med owner Fosun Tourism Group said on Monday net profit attributable to the company’s shareholders amounted to 490 million yuan (US$69.5 million) for the first six months this year, against a net loss of 254.5 million for the same period last year, mainly down to rising profit from tourism operations.
The company said gross profit for the first half grew 67.7 per cent to 3.015 billion yuan, while revenue grew 35.9 per cent to 9.1 billion yuan, even as a slowing global economy continued to weigh on the tourism industry.
“The whole global economy has been beset by many challenges, as seen in the European market and the tensions between the US and China. This has undoubtedly had an effect on spending in many industries. But the effect has not been felt very strongly in the tourism industry in China,” said Qian Jiannong, the company’s chairman.
“Medium to high-end tourism [in China] in particular is in short supply. The tourism sector in China is actually growing at a faster rate,” he said.
Citing a report from the China Tourism Academy, Qian said domestic tourism spending had grown by 13.5 per cent in the first half of 2019 year on year, while the number of Chinese travellers making outbound trips had grown by 14 per cent.
“This means that even as the economy has worsened, compared with the previous year, the tourism sector in China has continued to grow,” he said.