Venture capital institutions do not like “touring and playing with water” and “cold” investment in tourism (VC296)

Over the past 10 years, domestic tourism revenue has grown at an average annual rate of 13.7%. However, VC institutions are not paying much attention to enterprises in the tourism industry, and there are only a few investment cases.

Tourism market development is a bit "hot"

It is reported that during the 10 years from 2000 to 2010, the number of domestic tourists increased by an average of 11.2% annually; the number of inbound tourists increased by an average of 4.7% annually. The average annual growth of domestic tourism revenue is 13.7%. In 2010, the domestic tourism industry achieved a total revenue of 1.44 trillion yuan, an increase of 11.7% from the previous month.

Investment institutions are a bit "cold"

Due to the greater impact of climate and economic prosperity, and the longer investment return period of scenic spots, private equity investment institutions currently pay limited attention to tourism industry companies, and related hotel chains, restaurants, travel services or tourism information Websites and other industries are more favored by capital.

Private equity financing activities of tourism companies have gradually increased since 2007. IDG Capital, Goldman Sachs, Haina Asia, Yunfeng Funds have made innovative investment impressions. IDG Capital has invested in Wuxiang Tourism in Tongxiang, China-Belgium Fund has invested in Tianmu Lake, Jiangsu, and China Science and Technology Investment has participated in Guangdong China Travel Capital increase and share expansion are all relatively influential transaction events in recent years. In the past five years, there are three tourism industry companies that have landed in the capital market through IPOs: Songcheng, China Travel and Yunnan Tourism.

Industry investment begins to "warm up"

The upcoming "Twelfth Five-Year Plan" of the tourism industry will take "3.13 billion domestic tourists, 153 million inbound tourists and total tourism revenue of 2.3 trillion yuan" as development goals for the next five years, and plans to cultivate Large tourism groups with clear main businesses, clear development paths and obvious competitive advantages encourage strong alliances, cross-regional mergers and acquisitions, overseas mergers and acquisitions, and investment cooperation and listing.

The analysis believes that with the support of various policies and the promotion of local industrial investment funds, private equity financing and mergers and acquisitions in the domestic tourism industry will become more active.

In fact, tourism industry investment has quietly warmed up. Since 2009, private equity investment funds focusing on the tourism industry have appeared in China. For example, ICBC International and HNA Group jointly initiated the establishment of the Hainan International Tourism Industry Fund (raising target of RMB 5 billion) in October 2010. It is reported that 5 companies including CYTS, HNA Travel and Yunnan World Expo Tourism have started private equity financing; Kaifeng Qingming Shangheyuan and other 7 companies have proposed a clear A-share financing plan.

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