Fluctuations in demand at tourist destinations and service areas due to adverse weather, extreme weather and disasters

「山陽自動車道の宮島サービスエリアでは、2026年６月の台風による大雨の影響で高速道路が通行止めとなったこと等が影響し、減収となりました。」

「At the Miyajima service area on the Sanyo Expressway, operations were scaled back during the autumn travel season due to paving work on the mainline access road, while winter heavy snowfall caused road closures, among other impacts, but」

「Although our Group was affected by weather factors such as record heat and typhoons, the number of inbound and domestic tourists visiting Hiroshima increased, in addition to」

「In the maritime transport and cableway businesses, tourists visiting Miyajima increased substantially from both Japan and overseas, driven not only by the recovery in travel demand after the pandemic but also by heightened attention following the visit of the leaders of the G7 countries to Miyajima during the G7 Hiroshima Summit. Passenger revenue also increased.」

「In the marine transportation and aerial tramway businesses, travelers were recovering in the absence of restrictions on movement despite the arrival of the 8th wave of COVID-19. In addition, visitors increased significantly following the completion in late November 2022 of the 3.5-year "Reiwa Grand Renovation" of Itsukushima Shrine's Great Torii, and passenger revenue increased accordingly.」

「In the marine transportation and aerial tramway businesses, travelers returned, particularly during Golden Week, following the lifting of restrictions on movement. The number of visitors to Miyajima in the first quarter increased significantly from the same period of the previous year, and passenger revenue also increased.」

「In the maritime transport and cableway businesses, use by groups, particularly school excursion groups, gradually began to recover after the lifting of the state of emergency. However, the number of visitors to Miyajima remained sluggish compared with pre-pandemic levels.」

「In the marine transportation and aerial tramway businesses, revenue rose as the number of tourists visiting Miyajima increased from the same period of the previous year, despite the declaration of a state of emergency in major cities.」

「In the distribution business, we newly began operating and managing the tourist and commercial facility etto in Miyajimaguchi, Hatsukaichi, but were forced to close it due to the spread of COVID-19. In connection with the Miyajimaguchi development project, Momiji Honjin was closed in December 2019. Revenue also declined because restaurant and other food-service operations were suspended or hours shortened at both the Miyajima and Kudamatsu service-area stores on the Sanyo Expressway.」

「At the service areas, expressway use by private and commercial vehicles declined substantially as people refrained from travelling due to the spread of COVID-19. Revenue declined as operations were suspended or hours shortened, among other measures.」

「Against this backdrop, our Group made thorough efforts to prevent COVID-19 infections, prioritizing the provision of safe transportation. However, the substantial decline in foreign tourists resulting from the spread of the virus, together with the cancellation of various events, closures of commercial facilities and requests to refrain from going out due to teleworking in Japan, had a major impact, resulting in extremely challenging conditions for all businesses.」

「From the fourth quarter onward, the spread of COVID-19 led to a substantial decline in foreign tourists, while the cancellation of large-scale events and requests to refrain from going out began to have an impact in Japan, resulting in extremely challenging conditions for all businesses toward the end of the fiscal year.」

「In the cableway business, revenue declined as the impact of adverse weather, including typhoons, and a decrease in group tour passengers following the start of renovation work on the large torii gate of Itsukushima Shrine weighed on results.」

「At Miyajimaguchi Momiji Honjin, the number of visitors to Miyajima increased compared with the first half of the previous fiscal year, when tourism declined due to the 10-day Golden Week holiday and the heavy rains in July 2018. At the service areas as well, the number of expressway users increased due to the effect of the 10-day Golden Week holiday, resulting in higher revenue.」

「Demand at tourist destinations and expressway service areas in the regions where our Group operates may affect performance as consumers have fewer opportunities or less inclination to go out due to adverse weather, extreme weather, disasters or conflicts, outbreaks of infectious diseases and other factors.」