New integrated resort in China by Fosun
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Fosun bets on integrated resorts to address the needs of Chinese travelers, who are showing interest in these types of experiences. Fresh from its Hong Kong initial public offering last month, Fosun Tourism Group is making good on its intention to use the proceeds to develop two new integrated resorts in China, announcing properties under the Thomas Cook Group brands Casa Cook and Sunwing.
The two projects are in Lijiang, Yunnan province, famous for its UNESCO World Heritage old town, and Taicang, Jiangsu province, 30 minutes from Shanghai.
Fosun Tourism chairman and CEO Jim Qian told Skift he is seeing different segments emerging in China’s domestic travel market. While this is already the norm in mature western markets, it’s just starting in China, and there’s a need to offer local travelers a choice of hotel brands and a variety of experiences, said Qian.
In so doing, Fosun is turning to what’s in the family, its own Club Med and its Thomas Cook China joint venture. The Lijiang Albion International Resort will also have a Club Med, which has “a different positioning” from the boutique, design-led Casa Cook, he said.
The whole development in Lijiang is spread over at 350,000 square meters (382,765 square yards). It is located near the Baisha old town, which lies closest to the majestic Yulong Snow Mountain, and is the only land permitted for massive development.
How it will be sensitive to the tranquil and preserved ancient surroundings remains to be seen. For now, its website says it aims to attract mid- to high-profile guests by offering the total package, including a Club Med snow-themed resort, a guesthouses town, riverside shows, heritage towns, outdoor activities, health and wellness.
“We will deliver a lot,” said Qian. “I believe in the future when a family goes on a holiday, they don’t just want to stay in the room.
“The Lijiang Albion International Resort will also have a Club Med, which has “a different positioning” from the boutique, design-led Casa Cook, he said.”
“Nowadays in China, we have more resort hotels in destinations such as Sanya, but most are actually business hotel brands moving from the city to the beach. I don’t think that kind of hotel is suitable for a family holiday. We will introduce the real beach or holiday resort to a destination.”
Not much is known of Fosun’s other resort project in Taicang except that it is smaller at 145,000 square meters (158,570 square yards).
Both are expected to be completed in stages from late 2020.
Fosun Tourism, whose slogan is Everyday is Foliday (short for Fosun holiday), having tested destination development and management with its fully owned Atlantis Sanya, is keen to bring the experience to bear on the projects.
“We have the experience in the construction of resort destinations, and we know how to make foreign brands suitable for the Chinese market,” said Qian.
Fosun Tourism also believes the timing is good. It pointed out the per capita tourism expenditure in China in 2017 was about $575, which was below the global average of $741. “This implies the great potential for the growth of China’s tourism market,” it said.
Besides, it claimed to be in a stronger position now, announcing ahead of its annual results to be released in March that it expects a net profit of at least 350 million yuan ($52 million) in 2018, compared with a net loss of 295 million yuan ($44 million) in 2017.
Questions & Answers
Q.Which specific Thomas Cook Group brands will be used for Fosun's new integrated resorts in China?
Which specific Thomas Cook Group brands will be used for Fosun's new integrated resorts in China?
Fosun is announcing properties under the Thomas Cook Group brands Casa Cook and Sunwing. These will be part of the two new integrated resorts being developed in China.
Q.What is the expected completion timeline for the new integrated resorts being developed by Fosun?
What is the expected completion timeline for the new integrated resorts being developed by Fosun?
Both the Lijiang and Taicang projects are expected to be completed in stages. Construction is anticipated to finish starting from late 2020.
Q.How will Fosun ensure its new Lijiang resort is sensitive to the local environment and heritage?
How will Fosun ensure its new Lijiang resort is sensitive to the local environment and heritage?
The article states that how the resort will be sensitive to the tranquil and preserved ancient surroundings remains to be seen. No specific measures are detailed within the text.
Q.What is the key difference between the Lijiang and Taicang integrated resort projects in terms of scale?
What is the key difference between the Lijiang and Taicang integrated resort projects in terms of scale?
The Lijiang Albion International Resort is considerably larger, spread over 350,000 square meters. In contrast, the Taicang resort project is smaller, at 145,000 square meters.
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