Club Med sees potential for growth as Olympics spur snow sports desire

As the Beijing Winter Olympics ignite enthusiasm for winter sports and more people vacation in domestic hotels amid the pandemic, French resort operator Club Med sees great potential for growth in ski resorts in China.

Andrew Xu, CEO of Club Med China, said the number of skiers in China started to grow after Beijing won the bid to host the 2022 Games seven years ago. He expects the increase to continue after the Olympics.

"It was really a tipping point and in the past two years we saw more and more novice Chinese skiers turning into repeat guests of our resorts," said Xu. He added that the group has recently opened a new resort Club Med Changbaishan in Jilin province.

The group now has three ski resorts in the country, with the other two at the prime skiing destinations of Yabuli and Beidahu in Northeast China.

Xu said two of the resorts have been running at near full-house for the current snow season despite disruption by sporadic COVID-19 outbreaks.

A report on Spring Festival tourism, published by China's major online travel agency Ctrip on Feb 6, said bookings for skiing hotels and resorts during the holiday had increased by 54 percent compared with the same period last year.

"The Beijing Winter Olympics have really driven that trend by promoting winter sports in the media and introducing programs to schools," he said.

Another report published in January on winter sports and leisure tourism by the Chinese Tourism Academy estimated that the revenue generated in the sector during 2021-22 might reach 323 billion yuan ($51 billion).

Xu said Club Med's all-inclusive package, which means its hotel price includes three meals a day, ski pass and coach, among other services, was popular among families.

"In our resorts in the Alps, the average customer is a family of four－two adults and two children－who will usually stay for about a week," he said. "In China, people come to skiing resorts for a shorter stay, around three to four days, so we've got a lot more room for growth."

With 15 ski resorts in the Alps, the company is now eyeing East Asia. It is planning new ski resorts in Chongli, which is part of the Beijing Winter Olympics competition zone, and in South Korea's Pyeongchang, as well as Japan's Hokkaido, according to Xu.

"Skiing is not a one-off thing. As more and more young Chinese are learning this sport, we can expect steady growth in the long run," he said. "The Beijing Olympic Winter Games are only the beginning."