Fosun bets on building an icon
• Atlantis Sanya resort in Hainan is intended to lure foreigners and locals
China’s Fosun International has launched its Atlantis Sanya luxury resort in a $1.74bn bet that the sailshaped development will become an icon in Hainan — China’s Hawaii — and a beacon to domestic and foreign tourists.
China’s Fosun International on Saturday launched its Atlantis Sanya luxury resort in a $1.74bn bet that the sail-shaped development will become an icon in Hainan — China’s Hawaii — and a beacon to both domestic and foreign tourists.
The conglomerate’s 11-billion yuan ($1.74bn) investment in China’s southern province is in line with the central government’s desire to boost tourism in Hainan, which is popular among Chinese holidaymakers.
Fosun, which was co-founded by Chinese billionaire Guo Guangchang, has been one of the country’s most acquisitive overseas deal makers.
But like peers including Dalian Wanda Group and HNA Group, Fosun — China’s largest privately held conglomerate — has faced increased scrutiny by Beijing for debt-fuelled, bigticket foreign deals and is now pursuing a development path more closely aligned with Beijing’s priorities.
Tourism is viewed as key to China’s shift towards a more consumption-driven model of economic growth from an investment- and export-led one. Beijing aims to raise the country’s tourism market revenue to 7-trillion yuan by 2020, from 5.3-trillion yuan in 2017.
Hainan, one of China’s top holiday destinations, has sought to internationalise its tourism sector since 2010 after winning approval from the central government to develop international tourism. But only 1.1-million out of 67-million visitors came from abroad in 2017.
Located on Haitang Bay, one of the major bays in Sanya and known for its 22km strip of white, sandy beaches, Atlantis Sanya was inspired by Dubai’s Atlantis, The Palm. The integrated resort offers hotel suites with views of underwater marine life, as well as a water park and a shopping mall. The resort, owned by Fosun and managed by Kerzner International, occupies an area of 540,000m² — equal to 66 soccer pitches — and has 1,314 guest rooms.
“Atlantis Sanya is not only a forerunner of the supply-side reform of the tourism industry but is also becoming a new landmark of Hainan tourism,” Xu Zhenling, vice-mayor of Sanya, said at a news conference on Saturday ahead of the resort’s grand opening in the evening.
She said that the resort would also raise Hainan’s profile overseas, as the island province — which is China’s largest economic development zone — seeks to further open up its economy and focus on developing modern tourism, services and high-technology industries.
Plans to build China’s first Atlantis resort in Hainan, the third in the world, were unveiled in 2013.