CDF, FOLIDAY release Hainan business performance r

China Duty Free (CDF) reported a gross trade income of 52.618 billion yuan (about 8.03 billion dollars) in 2020, a year-on-year increase of 8.24%. FOLIDAY, under the banner of the Atlantis Resort, Sanya, reported a 2020 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 607 million yuan (about 92.63 million dollars), the highest since opening. In recent days, CDF, FOLIDAY, and other companies have released their 2020 performance reports. It’s important to note that Hainan has now become a key market driving business performance, and that the development of the Hainan Free Trade Port has provided significant business advantages.

The 2020 CDF business performance report noted that as China’s domestic epidemic situation was effectively controlled, and new duty free policies were implemented, especially in the second half of the year, the company rushed to take advantage of these opportunities, thoroughly developing the Hainan Island departure duty free market. The company’s operations continued to improve, especially in the high profit margin sectors of luxury bags, watches, and jewelry, where sales saw a substantial increase year-on-year, powerfully driving profit growth.

CDF Hainan Meilan Airport Duty Free Shop (New Hainan App)

“Due to the beneficial Hainan Free Trade Port Policies, in 2020 the China Tourism Group saw excellent economic and social benefits. Our 23 affiliated Hainan companies contributed revenues in excess of 42 billion yuan across Hainan’s total tourism industry value chain. Currently, the Group employs over 7,600 staff members in Hainan. That’s a huge leap compared to Sept., 2018, when the Group’s headquarters moved to Haikou,” said China Tourism Group’s Hainan regional headquarters Deputy General Manager Jiang Hao.

FOLIDAY’s annual report shows that from February to March of 2020, due to the influence of the COVID 19 epidemic, the Sanya Atlantis Resort was forced to briefly close some operational facilities. In 2020, the Atlantis received a total of 4.6 million visits, down from 2019’s 5.2 million, and business revenues totaled 1.226 billion, a decrease of 6.5% from 2019’s numbers. In the second half of 2020, due to the influence of the Resort’s excellent products and reputation, the Atlantis was able to reverse course, showing a 36.5% increase in revenues over the same period of 2019, including an increase of 41.3% in guest room revenues and an increase in other revenues of 30.5%. In the second half of 2020, guest room prices dropped 18.1% compared to the same period of 2019, while room occupancy increased by 14.7 percentage points to 89.7%. Yearly profits did not drop in comparison to 2019, but instead increased, making 2020 the most profitable year on record since the Resort opened in 2018.

Visitors enjoy themselves in Atlantis Sanya Aquaventure Waterpark. (Hainan Daily)

Currently, FOLIDAY Group’s Sanya hotels, the Atlantis and Club Med, are already Sanya’s largest high end vacation resorts. FOLIDAY is now looking for its next business development opportunity in the Hainan Free Trade Port, including but not limited to vacation destinations, vacation resort management, all types of service and business solutions, travel retail, and lifestyle products, making an all-out effort to promote the leveling-up of the province’s cultural tourism industry.