Club Med to expand in Asia Pacific within the next five years3 min read
Club Med, the pioneer of premium all-inclusive holidays, is gearing up for an aggressive travel rebound in the Asia Pacific (APAC) region. Following the announcement of the brand’s upcoming greenfield beach resort in Borneo Kota Kinabalu, Club Med continues looking for opportunities in the Southeast Asian (SEA) region, specifically in Thailand, Vietnam and Indonesia.
Positive expansion signal amidst economy’s recovery
While Asia has taken a more cautious approach to the resumption of travel as compared to the rest of the world, this presented an opportunity for travel and hospitality brands in the region to refine operations and enhance safety measures in preparation for a stronger rebound. The pandemic demonstrated the resilience of Club Med, evident from the successful reopening of resorts in China and Maldives, followed by Northern America, the Caribbean and Europe.
Domestic travel to Club Med resorts in China soared by more than 2.5 times in 2021 and is already on track to surpass pre-pandemic demand. Similar success was evidenced in Club Med’s resort in Malaysia, with an increase in business volume of over 60 percent in the weeks following the relaxation of interstate restrictions, before the recent MCO. Beyond the success of its current resorts, Club Med is also readying itself with an aggressive expansion pipeline.
Come 2024, Club Med will be opening its first SEA greenfield beach resort in Borneo, Kota Kinabalu, in close collaboration with owners Golden Sands Beach Resort City Sdn Bhd (GSBRC). The 41-acre Club Med Borneo Kota Kinabalu resort will reveal a brand new destination, encapsulating the beauty and potential of Sabah. In addition, with growing accessibility of the resort just 6 hours from key Asian markets, Club Med is confident to capture the vast untapped potential of this pristine location.
Club Med envisions exciting growth from this upcoming project. As one of our most upscale resorts in South East Asia, it is expected to attract tourists from all over the world, destined to deliver consistently high occupancy rates.
“Club Med has been an outstanding partner in our collaboration for the Club Med Borneo Kota Kinabalu resort. They bring expertise in crafting unique experiences at resorts, and they have the right savoir faire to bring them to life and elevate stays in the resort,” said Peter Wong, Managing Director of Golden Sands Beach Resort City.
“We have utmost confidence in Club Med’s capabilities of creating a sense of destination at the Borneo Kota Kinabalu resort with upmarket designs that evoke emotional connections for guests with the destination, offering them the iconic Club Med experience in a site that is simply paradise.” said Peter Wong, Managing Director of Golden Sands Beach Resort City.
Unique business model poised to yield strong demand
Club Med’s success can be attributed to its capacity to market and distribute its resorts directly, evident from a consistent five percent year-on-year growth and a steady 1.4million guests pre-pandemic, bringing them a total of 1.7 billion Euros in business volume in 2019. Occupancy rates across the globe reflected this success as well, with pre-pandemic averages of 75 percent in the East, South Asia and Pacific region, as well as 76 percent and 78 percent in the Europe-Africa and North America regions respectively.
Primed to bring the all-inclusive travel model to pioneering heights
As the pioneer provider of premium all-inclusive holidays, Club Med offers a plethora of activities from adventure sports, to culturally immersive programmes and family-focused offerings. Creating a sense of destination by seamlessly blending the resort facilities into the natural surroundings of idyllic locations, the unique Club Med experience is complemented by the resorts’ smooth flow between social, F&B and entertainment venues, to the various tranquil zones as well as the kids’ club and spaces for families to converge. Club Med is the world leader for all-inclusive holidays, having crafted more than 70 years’ worth of experiences in over 70 resorts around the world, bringing across a unique energy that guests feed off of.