Fosun Tourism Capitalizes on Ski Resorts and Winter Sports in China

Fosun Tourism's Strategic Move in Winter Sports

Fosun Tourism Group, owner of the Club Med resort chain, is embracing China's skiing craze by investing heavily in winter sports facilities. The company’s co-president, Andrew Xu, noted a dramatic tenfold jump in winter sports spending, reaching 150 billion yuan (US$21 billion) in just four years.

Building a Winter Sports Future

Xu emphasized the severe shortage of premier ski resorts in mainland China, with only 14 high-quality venues available, despite the industry's rapid growth. Fosun is adopting an asset-light strategy to enhance its portfolio by managing resorts for other asset owners across China, significantly boosting its presence in this burgeoning market.

• Success at Taicang Alps Resort: Opened last November, it attracted 290,000 visitors and 113 million yuan in sales.
• Investment from Local Government: An agreement with Taicang's government for expanding ski slopes and entertainment amenities.

While exploring expansion, Fosun Tourism reported a 20% increase in profits for the first half of 2024, with revenues climbing 11% year-on-year. However, challenges loom as overall tourism spending has been impacted by economic concerns, leading tourists to opt for more economical choices.

Looking Ahead in the Ski Industry

With China's tourism market facing pressures, the investment in ski resorts epitomizes Fosun’s commitment to leveraging the winter sports trend. As the competition heats up, with projects like the Wintastar indoor ski park and other resorts emerging, Fosun’s strategic advancements in the skiing sector seem timely and crucial for capturing a market increasingly drawn to winter sports.