China Fosun dials up tourism push with $1.74 bln Atlantis Sanya luxury resort (updated)

Wanda Hotel Development

28/04/2018 09:45

* Domestic project amid Beijing scrutiny on big o'seas deals
    * In line with govt plans to develop modern tourism business

 (Adds comment from Sanya vice mayor)
    By Shu Zhang and Bobby Yip
    SANYA, China, April 28 (Reuters) - China's Fosun
International Ltd  0656.HK  on Saturday launched its Atlantis
Sanya luxury resort in a $1.74 billion bet that the sail-shaped
development will become an icon in Hainan - China's Hawaii - and
a beacon to tourists domestic and abroad. 
    The conglomerate's 11 billion yuan ($1.74 billion)
investment in China's southernmost province is in line with the
central government's desire to further boost tourism in Hainan,
already popular among Chinese holidaymakers.
    Fosun, co-founded by Chinese billionaire Guo Guangchang, has
been one of the country's most acquisitive overseas dealmakers.
    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, big-ticket
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 last year. 
    Located on Haitang Bay, one of the major bays in Sanya and
known for its 22-kilometre 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.
    "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 scheduled for the evening.
    She said the resort will also raise Hainan's profile
overseas, as the island province - China's largest economic
development zone - seeks to further open up its economy and
focus on developing modern tourism, services and high-technology
industries.   
    
($1 = 6.3325 Chinese yuan renminbi)

 (Reporting by Shu Zhang and Bobby Yip in SANYA
Writing by Ryan Woo
Editing by Kenneth Maxwell)
 ((shu.zhang@thomsonreuters.com; +86 10 6627 1271; Reuters
Messaging: shu.zhang.thomsonreuters.com@reuters.net))