Fosun Tourism Group said on Monday that a partial recovery in its Club Med vacation resorts during the first half of the year didn’t compensate for continued steep losses across its travel businesses — partly because of pandemic-related travel restrictions in its home market of China.
Hong Kong-listed Fosun Tourism generated revenue in the first half of 2022 of about $937 million (6.4 billion renminbi). But it endured a net loss of about $28 million (196 million renminbi).
In the first half of the year, Club Med produced about $838 million (5.7431 billion renminbi) in revenue, representing a recovery to 90.2 percent of the first half of 2019.
But executives at Fosun Tourism are optimistic. They plan to open four new resorts in the second half, having opened 3 resorts so far this year. If the company’s plan for openings stays on track, its annual resort capacity will be 18 percent larger in 2024 than in pre-pandemic.