Thomas Cook sets up Chinese partnership with Fosun

Thomas Cook has started a new joint venture with shareholder Fosun International with the aim of developing domestic, inbound and outbound tourism activities for the Chinese market.

The JV, which will be 51% owned by Fosun and 49% by the UK travel operator, will be marketed under the Thomas Cook brand and give the company direct exposure to China's growing demand for leisure travel.

The two parties will make a combined cash contribution to the partnership of £1.56m to sport the initial start-up phase.

It is expected that the JV will be operational this autumn and will be based in Shanghai.

Fosun invested £91.8m in a 5% stake in Thomas Cook back in March, with the latter at the time saying it would "explore collaborative opportunities", including a closer co-operating with parent company Club Med.

Fosun also said it intended to raise its holding to around 10% over time.

Thomas Cook's chief executive Peter Fankfauser said the JV "marks a significant milestone in our strategic partnership with Fosun".

"We are excited at the prospects of entering the largest and fastest-growing tourism market in the world with such an experienced partner," he said.