China’s Fosun International planning to grab North American tourism market
Chinese multinational company Fosun International Ltd is planning to expand the business in North America’s tourism and leisure market through acquisitions. Fosun, the parent company of Club Med Sas aims to begin a new product line for China by acquiring travel agencies, resorts, theme parks or anything related to tourism sector.
Currently, Fosun and Med receives most of the revenue from Asia and Europe. The firm presence in North America will enhance the tourism portfolio of the company. It is believed that the ongoing trade tensions between US and China will not affect the travellers and tourism sector. “We take a long-term view when making an investment decision. If it is a good target, we will not hesitate,” said Qian Jiannong, Senior Vice-President of Fosun International.
Med’s fortune has risen considerably ever since it was acquired by Fosun International. According to Fosun’s annual reports, Club Med recorded its most winter season visitors in a decade last year. The profit of Med showed an annual growth of 26 per cent between 2015 and 2017. Club Med has association with British travel agency Thomas Cook Group Plc, and owns Atlantis, a $1.6 billion luxury hotel complex on China’s southern island of Hainan.