IDG, Sequoia work with CYTS to set up travel fund
Sequoia Capital China, IDG Capital and CYTS jointly launched an investment fund, CYTS Hongqi Fund, to capitalize on consumer upgrade in the tourism industry.
Sequoia Capital China and IDG Capital have teamed up with Chinese state-run travel agency CYTS to launch an investment vehicle, CYTS Hongqi Fund, to capitalize on consumer upgrade in the tourism industry, according to a company filing submitted by Shanghai-listed CYTS.
Sequoia previously invested in a number of tourism companies, including travel information website Lvmama, online travel agency Tuniu and Yaochufa.
In 2015, China's tourism industry recorded revenues of RMB4.13 trillion (US$600 billion), up 11% year-on-year and contributing 4.9% of China's GDP that year, according to China National Tourism Administration.
China has said that it plans to invest RMB2 trillion (US$290 million) in the tourism industry during the 13th Five-Year Plan from 2016 to 2020, and aims to increase the industry's share of GDP to 12%.
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