Natural Disasters, Epidemics and Geopolitical Risks Leading to Trip Cancellations and Lower Demand

「If natural disasters such as earthquakes or epidemics occur at travel destinations, geopolitical risks such as terrorism or war increase, or a highly contagious infectious disease spreads, tours may be canceled and travel demand may decline, potentially affecting the operating results and financial position of the Group.」

「The number of international visitors to Japan was 2,157,000 in August, down 14.4% from the same month in 2019, 2,184,000 in September, down 3.9%, and 2,516,000 in October, up 0.8%. October was the first month since the spread of COVID-19 in which the number exceeded the level in the same month of 2019.」

「In the operating environment surrounding the travel business, the number of international scheduled flights recovered to 60% of the level before the spread of COVID-19, and the number of international visitors to Japan continued to recover, reaching 1,899,000 in May, down 31.5% from the same month in 2019, 2,073,000 in June, down 28.0%, and 2,320,000 in July, down 22.4%.」

「In the operating environment surrounding the travel business, the number of international scheduled flights recovered to 60% of the level before the spread of COVID-19, and the number of international visitors to Japan continued to recover, reaching 1,817,000 in March, down 34.2% from the same month in 2019, and 1,949,000 in April, down 33.4%. The number of Japanese departing the country also showed signs of a gradual recovery, reaching 694,000 in March, down 64% from the same month in 2019, and 560,000 in April, down 66.4% (Japan National Tourism Organization, JNTO).」

「Following the Japanese government's resumption of independent travel and visa waiver measures in October 2022, the number of international visitors to Japan was 934,000 in November, down 61.7% from the same month in 2019, 1,370,000 in December, down 45.8%, and 1,497,000 in January, down 44.3%, with the recovery trend continuing. However, rising prices and airfares, labor shortages affecting airlines and travel companies, and longer flight times resulting from changes to flight routes due to the Russia-Ukraine situation remained concerns for travel to Japan.」

「From 11 October, the Japanese government resumed accepting independent travelers from overseas and reinstated visa waiver measures, among other measures. The number of international visitors to Japan was 169,902 in August, down 93.3% from the same month in 2019, 206,500 in September, down 90.9%, and 498,600 in October, down 80.0%.」

「Although restrictions on cross-border travel remained, entry restrictions were gradually eased, and the number of inbound visitors to Japan and Japanese nationals departing the country recovered significantly from the previous year. Inbound visitors to Japan numbered 147,000 in May, compared with 10,000 in the same month of the previous year, and 120,000 in June, compared with 9,000, exceeding 100,000 in consecutive months. The number of Japanese nationals departing the country also gradually recovered, reaching 134,000 in May, up 344.9% year on year, and 171,000 in June, up 459.3%.」

「In Japan, regulations were gradually being eased, including the resumption from March 2022 of new entries for purposes other than tourism under certain conditions. However, entry for tourism purposes remained prohibited, and the number of inbound visitors to Japan was 16,700 in February, down 99.4% from the same month in 2019, and 66,100 in March, down 97.6%.」

「In Japan, entry for tourism purposes remained prohibited. The annual number of inbound visitors to Japan in 2021 fell 99.2% from 2019, making 2021 the lowest annual figure since the Japan National Tourism Organization began publishing inbound visitor statistics in 1964.」

「The environment surrounding the travel business remained challenging, with cross-border travel suspended except in some cases as part of measures to prevent the spread of COVID-19, and entry for tourism purposes still not permitted. The number of inbound visitors to Japan was 25,900 in August, down 99.0% from the same month in 2019, and 17,700 in September, down 97.0%, remaining at low levels. The number of Japanese nationals departing the country also fell sharply, to 66,051 in August, down 96.9% from the same month in 2019, and 52,400 in September, down 97.0%, indicating that travel demand was stagnant worldwide, according to the Japan National Tourism Organization (JNTO). Meanwhile, in Japan, the state of emergency and priority preventive measures that had remained in place following the summer surge in infections were lifted nationwide at the end of September. From October onward, the transition toward living with COVID-19 and a gradual return to normal life accelerated, and signs of a gradual recovery in travel demand began to emerge.」

「The environment surrounding the travel business remained challenging, with cross-border travel suspended except in some cases as part of measures to prevent the spread of COVID-19, and entry for tourism purposes still not permitted.」

「The environment surrounding the travel business remained extremely challenging. As part of measures to prevent the spread of COVID-19, 93 countries and regions had imposed entry restrictions on travellers from Japan and Japanese nationals, according to the Ministry of Foreign Affairs' overseas safety website, and cross-border travel had been suspended except in some cases. Japan also requested that people refrain from travelling between prefectures, among other measures, creating continued severe conditions for the travel industry, which depends on the movement of people.」

「The number of inbound visitors to Japan was 8,700 in August, down 99.7% year on year, and 13,700 in September, down 99.4%, remaining well below the previous year's level for 12 consecutive months. The number of Japanese nationals departing the country also fell sharply, to 37,137 in August, down 98.2% year on year, and 31,600 in September, down 98.2%, according to the Japan National Tourism Organization (JNTO), indicating that travel demand was stagnant worldwide.」

「The number of inbound visitors to Japan was 1,700 in May, down 99.9% year on year, and 2,600 in June, also down 99.9%, remaining well below the previous year's level for 9 consecutive months. The number of Japanese nationals departing the country also fell sharply, to 5,539 in May, down 99.6% year on year, and 10,700 in June, down 99.3%, according to the Japan National Tourism Organization (JNTO), indicating that travel demand was stagnant worldwide.」

「The travel business faced continued severe conditions as the global spread of COVID-19 led many countries to impose entry restrictions and Japan also requested that people refrain from travelling between prefectures, among other measures, affecting the travel industry, which depends on the movement of people.」

「The slowdown in the South Korean market, which accounts for a large number of inbound visitors to Japan, has continued, while the environment surrounding the inbound travel market has been changing daily under the influence of global developments and other factors.」

「South Korea, which has the second-largest share of inbound visitors to Japan after China, has seen a reluctance to travel to Japan, raising concerns about the potential impact going forward.」

「The Group's travel business could be affected if natural disasters such as earthquakes or epidemics occur at destinations, or if geopolitical risks such as terrorism or war increase, resulting in trip cancellations or lower travel demand.」