Impact of COVID-19 on the Travel, Publishing and Overseas Facilities Businesses

「In the travel and tourism market in which our group is primarily involved, recovery has continued overall, although at a slower pace than during the rapid recovery from COVID-19.」

「In the travel and tourism market in which our group is primarily involved, recovery has continued, although at a slower pace than in the prior year, when the market recovered rapidly following the shift of COVID-19 to Category 5.」

「We believe that the impact of COVID-19 on the economic environment has become less severe since its classification under the Infectious Diseases Control Law was shifted to Category 5, equivalent to seasonal influenza. However, we also recognize that concerns over a new wave caused by the emergence of new variants have not yet been completely dispelled.」

「Although COVID-19, which had cast a major shadow over the global economy for an extended period, continues to have varying effects by region in Japan, its classification under the Infectious Diseases Control Law was shifted to Category 5, equivalent to seasonal influenza. The return to pre-pandemic daily life has become visible, with acrylic partitions being removed from restaurants and decisions on mask-wearing being left to individuals, and concerns about people's economic activity have been almost fully resolved.」

「Although the seventh wave of infections caused by the Omicron variant occurred in the summer and the largest wave to date, the eighth wave, followed from autumn, causing effects including pressure on the healthcare system, restrictions on people's activities were not imposed by the national or local governments. In addition, demand-stimulus measures such as prefectural travel discounts and the nationwide travel support program provided support, and tourist destinations remained crowded throughout the period. A visible economic recovery also began to emerge in the travel and tourism industry in which our group primarily operates.」

「Although the largest wave of infections to date, the seventh wave caused by the Omicron BA.5 variant, occurred in the summer and affected the healthcare system, restrictions on people's activities were not imposed by the national or local governments. As a result, the first extended holiday and summer vacation season in 3 years without activity restrictions saw tourist destinations crowded with visitors, and a visible economic recovery began to emerge in the travel and tourism industry in which our group primarily operates.」

「Although the economic impact of the COVID-19 pandemic, which had a major effect on the performance of our group, is expected to gradually become less severe as booster vaccinations and therapeutic drugs become more widely available, concerns over further waves caused by new variants have not been completely dispelled. In addition, while the effects of the pandemic remain uneven across countries and regions in cross-border movement of people, the timing of a return of each country's border-entry restrictions to pre-pandemic levels remains uncertain. There are also concerns that factors including inflation advancing worldwide as economies recover amid supply constraints and the economic sanctions imposed by Western countries in response to Russia's military invasion of Ukraine could cast a shadow over the post-pandemic economic recovery.」

「More than 2 years have passed since the COVID-19 pandemic struck the world, and concerns remain that further waves could emerge with the appearance of new variants. However, the impact on the business environment is expected to gradually become less severe as booster vaccinations and therapeutic drugs become more widely available.」

「In addition, restrictions such as border-control measures were further tightened for cross-border travel due to concerns over the spread of the Omicron variant, which was newly reported overseas in early winter. As a result, the situation remained one in which the future outlook for the outbound and inbound industries could not yet be determined.」

「The fourth wave of infections that spread around Golden Week and the fifth wave, which rapidly expanded after the virus was replaced from around the summer holidays by a highly transmissible COVID-19 variant known as the Delta variant, led to repeated extensions of the nationwide state of emergency. As a result, the prolonged stagnation of market conditions continued, particularly in the food service and lodging, passenger transportation and tourism-related industries. With cross-border travel still restricted, the outbound and inbound industries remained in an uncertain situation with no clear outlook.」

「At present, the COVID-19 pandemic has not yet reached a stage at which its containment can be clearly forecast.」

「The spread of the infectious disease in successive waves throughout the four seasons continued to cause a sharp contraction and stagnation in travel and outing-related consumption. In particular, actual sales of our core commercial publications were severely affected, while our overseas activity facilities were forced to remain closed.」

「Due to the spread of the infectious disease, the government declared a state of emergency from April through the end of May. Even after it was lifted, the second wave of infections arrived in the summer, causing travel and outing-related consumption to contract sharply and actual sales of our core commercial publications to be severely affected. In addition, activity facilities owned by our group overseas remained closed.」

「During the cumulative first quarter under review, sales were significantly affected as consumption related to travel and outings contracted sharply after the government declared a state of emergency from April through the end of May due to the spread of the infectious disease. In particular, actual sales of our core commercial publications were severely affected, while activity facilities owned by our overseas group companies ceased operations.」