Home > > Club Med owner Fosun Tourism expects annual loss of up to $410 million

Club Med owner Fosun Tourism expects annual loss of up to $410 million

02/03/2021| 5:40:44 AM| ChinaTravelNews

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. 

TAGS: Club Med | Fosun Tourism | net loss
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