TravelNews

[Travel News]: Club Med owner Fosun Tourism expects annual loss of up to $410 million

TheTourAttraction.com aims to provide the latest global travel and free travel news, travel and visa policies, and flight information. We hope to provide insights into tourism market, technology and development trends with everyone by providing the latest relevant information. Despite the raging COVID-19 epidemic in 2020, we always firmly believe that mankind will overcome the disease and the tourism market will definitely recover. TheTourAttraction.com look forward to your attention and support, and witness the development of the global tourism industry with us. Looking forward to the information TheTourAttraction.com provide can help you. We will continue to follow up and obtain the latest data, and look forward to your attention and support.

The following is the [Travel News]: Club Med owner Fosun Tourism expects annual loss of up to $410 million from [ChinaTravelNews] recommended by TheTourAttraction.com:

Club Med resorts had 57% less business in 2020 than that in 2019.

Fosun Tourism Group announced that it expects to register a RMB 2,500-2,650 million (USD 387-410 million) net loss in 2020, mainly due to the operating loss of the group’s resort operations.

Since January 2020, the COVID-19 pandemic has caused various countries to take extensive public health measures such as city lockdowns and travel restrictions, which have significantly and negatively impacted the group’s resort operations business. 

For 2020, mainly due to the decrease in the capacity of the Club Med resorts by 55%, the business volume1 of the Club Med resorts is expected to decrease by 57% compared to 2019. 

In July and August 2020, namely the peak season in summer, the capacity of the Club Med resorts only accounted for approximately 41% of that in same period of 2019. The group’s plan to re-open more than 20 resorts by the end of 2020 had to be postponed, and some resorts had to be temporarily shut down again due to the impact of the second wave of the pandemic from September. 

In December, the capacity of Club Med resorts accounted for only about 38% of that of the same period in 2019.

Despite the above, Fosun Tourism said the group’s financial position remains healthy. As of 31 December 2020, the group has cash and bank balances of not less than RMB 4,500 million, undrawn bank facilities of not less than RMB 4,200 million, and bank loans due within one year of not more than RMB 2,200 million. 

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button