TOKYO, Mar 23 (Pulse News Wire) – Hanatour Japan CO.,LTD. (6561.T) outlined its conservative outlook for the fiscal year ending March 2026, citing uncertainties such as travel restrictions in China and geopolitical tensions in the Middle East.
The company reported reduced operations due to decreased Chinese tourist arrivals, particularly impacting FIT travelers and hotel ADRs. Additionally, bus companies experienced significant declines in group tours from China but managed to secure lower-cost contracts from other regions, leading to intensified price competition. Regarding the Middle East situation, while there have been some cancellations, Hanatour noted limited immediate impact across its businesses. However, prolonged instability could affect future performance. To mitigate risks, the firm plans to adjust pricing strategies, diversify sales markets, and enhance cost controls.
For the upcoming fiscal year, Hanatour emphasized the importance of achieving realistic targets amid ongoing challenges. Key factors influencing the cautious forecast include the closure of TMark City Hotel Sapporo, continued travel bans from China, and external economic unpredictability. The company also highlighted efforts to develop a new system aimed at boosting efficiency and profitability, with phase one scheduled for launch in the first half of 2026. In terms of dividend policy, Hanatour intends to maintain a payout ratio around 40% percent, balancing growth investments and stable cash flows. The decision reflects the company's commitment to sustainable returns for shareholders without compromising financial health.
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