Luxury resort operator Club Med hopes to move deeper into the China travel market, despite worries about a slowdown in the world’s second largest economy. ‘[China is] transitioning to a more consumer based economy – and tourism and holidays are a part of it,’ said Henri Giscard d’Estaing, global CEO of Paris-based Club Med. ‘This part of the market is growing double-digits and in our business we’re seeing even faster growth.’ Club Med recently opened their fourth resort in China and the region is the second biggest market for the company in terms of the number of guests. The doom and gloom headlines about a slowdown in China’s economy don’t worry d’Estaing. ‘I don’t see it in my business,’ he said. ‘Club Med is a premium – it targets affluent families and couples and globally, the number of affluent families and couples is growing and their willingness to take holidays is growing.’ China’s economy grew by 6.7 percent during the first quarter of 2016, compared to the 6.9 percent growth seen throughout all of 2015, which was its slowest level in 25 years. Back in 2010, China’s economy was growing in the low double-digits. d’Estaing is bullish on China and hopes to expand further into the region. ‘It is the largest tourist market in the world and [consumers in China] like premium, all-inclusive holidays,’ he added. While d’Estaing said the resort’s main target is families and couples, millennials are also on his radar. He agreed millennials are looking to spend money on experiences like travel and restaurants, as opposed to tangible goods – a trend that has surfaced in recent years. ‘Even though they have a diversified way of traveling – we are targeting the young affluent adults,’ he said, adding that millennials are attracted to resorts with sports and activities. Club Med operates 67 resorts in 24 countries. TheStreet’s Scott Gamm has details from Wall Street.
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