Pierre & Vacances sets sights on China's holiday market

European leader in tourism residences and resorts, Pierre et Vacances Center Parcs plans to invest in the Chinese market and bring its unique business model to the world's second-largest economy to attract Chinese investors.

"About a year ago, when we came to realize the Chinese middle class was booming, we believed it would be the best timing to enter the Chinese market," said Thierry Hellin, deputy CEO of the group, in an exclusive interview with China Daily before the French Prime Minister Manuel Valls and French entrepreneurs' visit to China on Jan 29.

There are many vacation companies in the market, according to a report released by the European Union.

In France, the vacation tourism industry has demonstrated resilience in the sluggish economic backdrop.

With 83 million visitors in 2012, France retained its position as the No 1 worldwide tourism destination and held about 16 percent of the Europe tourism market share.

"The total spending of French and foreign tourists represented 36 billion euros ($40.7 billion), representing almost 6.5 percent of France's GDP, which makes the country rank third in the world in terms of revenue from tourism," the EU's Tourism Industry Sub-sectors Country Report said.

According to the report, the tourism industry contributed about 77.7 billion euros to French GDP in 2012, 30 percent of which came from international visitors and 70 percent from domestic tourism spending.

Setting it apart from other vacation companies, Pierre et Vacances has a unique business model. It combines project design and planning, resort building, real estate sales and operating functions in one company.

Investors can purchase real estate at a Pierre et Vacances resort and "rent" their property to the company for management.

Domaine des Trois Forets, the biggest of the company's Center Parcs resorts in Europe, is located in eastern France.

The 450-hectare holiday resort has 1,000 cottages and 5,300 beds and provides access to many activities year round, including an indoor aquatic park, riding club, animal farm, forest hiking and cycling.

Founded in 1967, the company offers 300 unique sites in Europe including 19 Center Parcs resorts - four of them located in France - and attracts 7.5 million visitors every year.

The tourist accommodations and facilities in its resorts are owned both by individual and institutional investors, to which the group guarantees annual returns from 4 to 6 percent on average

"We looked to see if there are similar products in China, and such a combination with housing, leisure and services is not found there. The Chinese market will be our priority in 2015," Hellin said.

After his first trip to China last spring, the company has already sold some European accommodations to Chinese investors. It also signed a framework agreement with Beijing Capital Group to invest in a 250 million euro vacation resort near Shanghai and adapt the company's model to China.

"We are planning to attract investment from China and next year to launch two resorts projects inspired by Center Parcs - one is near Shanghai and one is near Beijing," he said. "Also we are in negotiations with Chinese tourist agencies to bring Chinese customers to our French vacation sites Villages Nature, Adagio, Pierre et Vacances and Center Parcs."

tuoyannan@chinadaily.com.cn

(China Daily 01/31/2015 page8)