Thomas Cook looks to Chinese market with new joint venture
Thomas Cook has announced a joint venture with Fosun to grow domestic, inbound and outbound tourism in the Chinese market under Thomas Cook brands.
The new venture, 51% owned by Chinese investment group, Fosun and 49% by Thomas Cook, will see a combined cash contribution of £1.56 million from the two companies – half of which will come from TC.
Additional funding will need unanimous approval of the board of the joint venture.
The tour operator hopes it will benefit from Fosun’s local market knowledge and ‘operational resources’.
Fosun paid £92 million for a 5% stake in Thomas Cook in March and bought Club Med in February this year.
Reto Wilhelm, current MD of Thomas Cook’s Eastern and Western European businesses, will take up the position of General Manager.
In his previous role as executive board member of the Kuoni Group, he headed Kuoni’s Asia and China division.
The board of the joint venture will comprise of two Thomas Cook members and two Fosun appointments.
The venture is expected to be operational in the autumn, subject to obtaining the relevant regulatory approvals and licenses, and will be based in the China (Shanghai) Pilot Free Trade Zone.
Peter Fankhauser, chief executive officer of Thomas Cook, said: "We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner."
Qian Jiannong, president of Fosun’s tourism & commercial group, said: "Today, there is a lack of innovation and differentiation in the travel product offerings for Chinese tourists in China and abroad, presenting an excellent opportunity for our new joint venture to gain a competitive advantage."
Diane
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