*Operating profit ratioto transactions for FY2003 improved to 0.24%

Japan Association of Travel Agents (JATA) held the 2005 JATA Management Forum in Tokyo on February 24 this year to report that operating profitratio to transactions of the 1st category travel agents for FY2003 (April 1 2003 to March 31 2004) improved to 0.24% from 0.07% a year ago although the travel industry was overall damaged by SARS in the fiscal year. It was the second highest ratio for the last nine years, following 0.41% for FY2000. However, the JATA survey finds that there is a big difference of financial conditions between "winning agents" and "losing agents."

This Week Headline
*Operating profit ratio to transactions for FY2003 improved to 0.24%
+Large difference of the results among employee-scale segments
+In-house agents marked the highest results
*Rakuten expects a business structure will further change with IT
+Rakuten Travel focuses entertainment and information volume
*JTB President stresses on "reform of its employees' minds"
*Reduction of Narita landing fee may be determined by late May
*Inchon surpasses Narita in transits on routes between Asia/Pacific and Europe
*Narita and Frankfurt Airport agree for reciprocal cooperation
*UAL begins serving Centrair-Taipei flights in April
*Five percents more passengers used Kansai for January

*GVB targets 1,050,000 Japanese visitors for 2005

Yuji Mitsumori, representative Japan of Guam Visitors Bureau (GVB), said at the Guam sales promotion seminar on February 15 that GVB is developing a new promotion to increase Japanese visitors for 2005 by 16% to 1,050,000 in comparison with 906,104 Japanese visitors for 2004. The number of Japanese visitors to Guam for January this year wasup 13% to 89,000 over the same month last year, and for the first 10 days of February, Guam accepted 23% more Japanese visitors than ayear ago, according to Mitsumori.

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*GVB targets 1,050,000 Japanese visitors for 2005
+The 9th "Big Summer Campaign" will start
*Korea and Australia were more preferred for school tours for FY2004
+Tour days are 5.7, and tour expenses are 162,334 yen on the average
*IC passport will be introduced within FY2005
*Centrair opens with 294 international flights weekly
*JAL has a 40% share of international flights at CJIA
*The Minister says that CJIA does not give a negative impact to Kansai
*Kansai to lure domestic flights with discount ideas
*ANA and Air China expand code-sharing operations to all flights of both
*AAL will offer double-daily flight services on its Narita-Dallas route

*Kinki aims at 1.1 million overseas travel customers for 2005

Kinki Nippon Tourist announced on February 9 that it aims to increase overseas travel customers by 12.2% to 1.1 million for 2005 over the previous year and to achieve sales of 160 billion yen for the overseas travel business. Targets of each business segment are 550,000 customers (22% up) and sales of 75 billion yen (20% up) for Holiday or Kinki's overseas package tour brand, 300,000 customers for the ECC (Event, Convention and Congress) business and 250,000 customers for business trip and FIT.

This Week Headline
*Kinki aims at 1.1 million overseas travel customers for 2005
*Holiday focuses on senior and wedding customers for the first half of 2005
+Aiming at 13,000 customers and sales of 3 billion yen for senior products
+Increasing Silk Road productsto eight courses
*A research finds more 50% experience to purchase air tickets on Internet
*JAL's four companies will be unified into one JAL within FY2006
*JAL posted net profit of 79.2 billion yen for the 3rd quarter
*JAL will increase its Chicago flights to meet demands between America and China
*JAL air transport result for December 2004
*IHG Launches "From the Heart"to Drive Donations for Tsunami Survivors

*JTB exploits MICE business in Asia through an independent company

JTB Global Marketing & Travel (JTB GMT) will be launched on April 1 thisyear, evolving from the International Travel Division of JTB. The independent company's President Hideaki Noguchi said at an interviewwith the Wing Aviation Press that it will earnestly exploit MICE business (Meeting, Incentive, Convention and Exhibition) for Japanesecompanies in Asia. For the business exploitation, the new company will establish sales representatives in Los Angeles and London within FY2005 to develop marketing activities toward Japanese companies in America and Europe. Also, it will set up its original operationbases focusing on MICE business in Asia.

This Week Headline
*JTB exploits MICE business in Asia through an independent company
+Sunrise Tour stresses on FIT from Asia
+Targeting transactions of 20 billion yen for FY2008
*New TA Japan Director says the Vision One Million helps the JATA's target
*JAL PAK sells more FIT-oriented products for the 1st half of FY2005
*ANA aims at annual operating profit of 90 billion yen for FY2007
+Concentrating B777 on international flights
*ANA revises upward its financial outlook for FY2004 full year
*ANA ties up with South African for FFP
*JAL will purchase 30 B737 Next Generations
*Airtransse will begin intra-Hokkaido flight services in March this year
*Kansai marked the most international taking-offs and landings ever