Club Med owner Fosun Tourism bullish about return to pre-coronavirus levels
- Hong Kong-listed company expects performance between July this year and June 2022 to match full-year earnings for 2019
- Prospects for travel industry appear to be rosy, as pent-up demand is released: analyst
Club Med owner Fosun Tourism Group said on Wednesday that it expected a sharp rebound in business in the months ahead.
“We are inspired by the businesses in July, because a hefty growth was seen,” he said. “In July, 73 per cent of our capacity was used and we feel it is meaningless to compare the results to 2020 [due to a low base].”
Tourism has been the economic sector worst hit by the pandemic since last year because of lockdown restrictions and border closures. The roll-out of vaccines has, however, allowed the gradual reopening of major economies such as the United States and European Union countries, giving companies such as Fosun Tourism some hope of recovery.
“We hope that our hotel, aviation and travel agent segments will all return to their 2019 levels,” Xu said. “We have a bullish forecast because bookings in the first three weeks of July jumped 60 per cent from the same period in 2019.”
