Wanda Tourism aims for 20 billion in revenue within 3 years
Jianlin Wang says that in the future one of Wanda Group’s biggest focuses will be their travel business. He hopes to see Wanda Tourism become the largest leisure travel company in the world.
Jianlin Wang, chairman of Wanda Group, says that in the future one of Wanda Group’s biggest focuses will be their travel business. He hopes to see Wanda Tourism make over 20 billion RMB in revenue within the next three years. He also hopes that by 2020 Wanda Tourism will handle 200 million trips and become the largest leisure travel company in the world.
Wanda Tourism’s 20 billion RMB target
Wanda Group is mainly involved in business real estate but they are advancing into the hotel industry. They usually only retain ownership of the properties and are not involved in management. However in recent years the Wanda Grouphas setup their own hotel management company and have invested heavily in comprehensive tourism projects. In the first half of the year Wanda Group has started construction of their “Wanda Cultural Tourism Cities” in 8 locations across China. The total investment for this project is 325 billion RMB. Meanwhile Wanda Group has been acquiring 8 regional tour operators.
Wanda Group’s major source of revenue is still from real estate, but their tourism businesses will attract the attention of customers to Wanda Groups other businesses. Wanda Group’s strategy is to develop resorts and then link them to their hotels, travel companies, and other businesses. Their acquired tour operators will further add to Wanda Groups customer base and will complete their “business empire”.
Jianlin Wang confidently says, “Currently Disney is the world’s largest leisure travel company. In 2013 they received 130 million visits to their properties. We estimate that by 2020 we will have around 160-170 million visits to our leisure travel projects and if we can get 200 million visits then we will be the largest leisure travel company in terms of number of travelers handled. I believe that within 10 years besides Wanda, China will have several major players emerging in the global travel industry”.
Jianlin Wang forecasts that by 2020 Wanda Group will make a major transition with their culture and leisure businesses becoming a major source of revenue. At that time their revenue from real estate should drop below 50% of total group revenue. Besides investment in domestic tourism, Jianlin Wang also has his eye on overseas investment. Wanda Group will invest in projects in Madrid, Los Angeles, Chicago, and Australia.
Jianlin Wang says, “Real estate is not the major focus of our overseas expansion. In the next two months we will have 1-2 comparatively large overseas acquisitions. Our 2020 development plan is to have 20% of our revenue coming from abroad. Very little of this revenue will be from real estate. Rather, the most important source of revenue will be the culture and leisure industry”.(Translation by David)