Thierry Orsoni
02-12-2004, 05:16 PM
Posted by Thierry Orsoni on October 25, 2001 at 14:35:02:
Club Med announces the closure of several vacation villages in response to the crisis provoked by the September 11 terrorist attacks.
To quote from their press release of October 19th:
"In an economic environment which had already been difficult for all players
of the tourist industry for several months, compounded by the recent
dramatic events that have taken place in the US, Club Méditerranée has
decided to implement an action plan aiming to take account of the impact
of these events on its operating conditions.
Today, in view of the overall reduction in bookings made in recent weeks,
Club Méditerranée has decided to adjust temporarily the number of
villages open for the 2001-2002 Winter season.
The group has therefore decided to implement the following measures,
concerning fifteen villages in about 10 countries:
Temporary closure for the Winter season (or for the whole year) of
villages (or villas) where booking levels are judged to be insufficient:
Huatulco, Playa Blanca and Sonora Bay in Mexico (closing for the whole
year) ; St. Lucia in the Caribbean, Assinie on the Ivory Coast, Cherating
Beach in Malaysia, Mare Nostrum in Greece, Colombus in the Bahamas,
Coral Beach in Israel ; Amoun (villa) in Egypt ; Tenerife (in the Canaries) ;
Temporary closure of a village where significant renovation work
is planned (Djerba la Douce in Tunisia) or definitive closure of villages
coming to the end of their lease (Leysin in Switzerland) or of operations
(sale of Byron Bay in Australia) ;
Furthermore, provisional closure of a small number of villages
(about 4/5) where the outlook for occupancy could generate
significant losses. The list of these villages is being studied and will be
according to booking levels in the weeks to come.
These combined measures will lead to a probable reduction of worldwide
capacity of about -15% compared to that of Winter 2001 and of about
-20% for non-ski villages in Europe, whereas capacity is up 10% for ski
villages.
At the end of August, operating profits from village activities were similar to
the good levels seen last year, despite the slowdown seen in North
America and, to a lesser extent, in Asia, while the cost of developing new
activities and the relaunch of Jet Tours continued to weigh on results. The
events of September 11 have had a significant effect on the activities of
Club Méditerranée in all of its geographic zones... In the current economic
environment, it is still too early to make any kind of forecast.
Nevertheless, in the context of the scenario based on an assumed 15%
reduction in activities, measures announced today should enable Club
Méditerranée to achieve an operating result close to flat for Winter 2002.
Commenting on these measures, Philippe Bourguignon, Chairman of the
Executive Board , said:
" The aim of decisions announced today is to react as quickly as
possible to the consequences of the crisis in activity whilst retaining our
strategy and our capacity for future growth..."
Club Med announces the closure of several vacation villages in response to the crisis provoked by the September 11 terrorist attacks.
To quote from their press release of October 19th:
"In an economic environment which had already been difficult for all players
of the tourist industry for several months, compounded by the recent
dramatic events that have taken place in the US, Club Méditerranée has
decided to implement an action plan aiming to take account of the impact
of these events on its operating conditions.
Today, in view of the overall reduction in bookings made in recent weeks,
Club Méditerranée has decided to adjust temporarily the number of
villages open for the 2001-2002 Winter season.
The group has therefore decided to implement the following measures,
concerning fifteen villages in about 10 countries:
Temporary closure for the Winter season (or for the whole year) of
villages (or villas) where booking levels are judged to be insufficient:
Huatulco, Playa Blanca and Sonora Bay in Mexico (closing for the whole
year) ; St. Lucia in the Caribbean, Assinie on the Ivory Coast, Cherating
Beach in Malaysia, Mare Nostrum in Greece, Colombus in the Bahamas,
Coral Beach in Israel ; Amoun (villa) in Egypt ; Tenerife (in the Canaries) ;
Temporary closure of a village where significant renovation work
is planned (Djerba la Douce in Tunisia) or definitive closure of villages
coming to the end of their lease (Leysin in Switzerland) or of operations
(sale of Byron Bay in Australia) ;
Furthermore, provisional closure of a small number of villages
(about 4/5) where the outlook for occupancy could generate
significant losses. The list of these villages is being studied and will be
according to booking levels in the weeks to come.
These combined measures will lead to a probable reduction of worldwide
capacity of about -15% compared to that of Winter 2001 and of about
-20% for non-ski villages in Europe, whereas capacity is up 10% for ski
villages.
At the end of August, operating profits from village activities were similar to
the good levels seen last year, despite the slowdown seen in North
America and, to a lesser extent, in Asia, while the cost of developing new
activities and the relaunch of Jet Tours continued to weigh on results. The
events of September 11 have had a significant effect on the activities of
Club Méditerranée in all of its geographic zones... In the current economic
environment, it is still too early to make any kind of forecast.
Nevertheless, in the context of the scenario based on an assumed 15%
reduction in activities, measures announced today should enable Club
Méditerranée to achieve an operating result close to flat for Winter 2002.
Commenting on these measures, Philippe Bourguignon, Chairman of the
Executive Board , said:
" The aim of decisions announced today is to react as quickly as
possible to the consequences of the crisis in activity whilst retaining our
strategy and our capacity for future growth..."