*JTB has revised downward Japanese overseas travelers for 2006

JTB recently released "JTB REPORT 2006," in which it has revised downward forecast of Japanese overseas travelers for 2006 from 18 million announced in the end of 2005 to 17.8 million because the number of Japanese overseas travelers for the first four months of 2006reduced from the result for the same period last year. The most-ever Japanese overseas travelers were 17.82 million for 2000. JTB analyzes that the downturn mainly resulted from in active travel demandfor China and Korea, however business trip demand is still active.

This Week Headline
*JTB has revised downward Japanese overseas travelers for 2006
*JTB Symposium: The overseas travel market will be on a new growth track after 2006
*GTO to increase 30's to 50's malecustomers for its dynamic packages
*Jetstar offers 20% cheaper airfareson its Japan route than usually
*China finally approved fuel surcharges on China-Japan flights
*International departures from Centrair is expected to grow largely this summer
*Narita recorded the most monthly passengers ever for June
*JAL extends interline e-ticketing for international flights
*Domestic flight passengers slightlygrew for June this year

*LOOK JTB to revise upward its customer goal for FY2006

JTB World Vacations has recently revised upward a customer goal of LOOK JTB for the second half of FY2006 to 693,000, 2% more than the original forecast as of January this year, and also for the full year of FY2006 to 1,364,000, 3% more than the original forecast as of January this year. Also, the JTB brand products are expected to collect 671,000 customers for the first half of FY2006 (April to September 2006), 8% more than a year earlier.

This Week Headline
*LOOK JTB to revise upward its customer goal for FY2006
*JAL PAK has continually suffered from flight reductions of JAL
*STB focuses on three markets to recover Japanese travelers
*JAL and ANA re-change fuel surcharges on their China flights
*Kansai forecasts more international passengers will depart this summer
*Fifty-nine charters will come from Korea this summer
*JAL will collect 138.6 billion yen by issuing new stocks
*ANA carried 17% more international flight passengers for May
*COA will serve four flights betweenSapporo and Guam earlier than usually

*Japan and China have agreed on 20% increase of air transport capacities

Minister of Land, Infrastructure and Transport of Japan (MLIT) Kazuo Kitagawa and Director of the General Administration of Civil Aviation of China (CAAC) Yang Yuanyuan met in Beijing on July 13 to reach a final agreement on respectively 20% increase of air transport capacities between both countries. According to the agreement, each country will be able to serve another 92 passenger flights a week in the equivalence to B767-300 and another 76 cargo flights a week in the equivalence to B767-300F.

This Week Headline
*Japan and China have agreed on 20% increase of air transport capacities
*ANA and Rakuten launch a joint company for dynamic package products
*JTB aims to raise a share of the e-commerce business to 10%
*JATA survey finds 8.7% more overseas package tour bookings in August
*New Vice Minister hopes short-haul international flights will fly from Haneda
*NAA applies to the Ministry for a 2,500 m extension plan of the 2nd runway
*Centrair suffered backlash against the Expo prosperity
*Vladivostok Air receives a businesslicense for Kitakyushu flight services

*Japan, China and Koreatogether try to create tourism Big Bang

Japan, China and Korea decided to develop tourism exchanges jointly through "Japan, China and Korea Tourism Big Bang" efforts on July 2 this year, when tourism ministers of the three countries met inAkan, Hokkaido for the first time. The agreement calls for increaseof tourist exchanges among the three countries from about 12 million for 2005 to more than 17 million for 2010. Kazuo Kitagawa, Minister of Land, Infrastructure and Transport of Japan, said, "It is a minimum target. I hope to achieve tourist exchanges of more than 20 million before 2010."

This Week Headline
*Japan, China and Korea together tryto create tourism Big Bang
+Three tourism ministers eachshow their enthusiasms for the future cooperation
+Private tourism sectors alsostep forward for expansion of tourism exchanges
*JAL ties up with JTB for overseas charter flight products
*JTB forecasts 5% more Japanese tourists will go abroad this summer
*HIS has received 20% more bookings this summer
*Yahoo! Travel has doubled bookings this summer
*JAL expects to raise capital of 200 billion yen
*Narita 1st PTB enjoys increasing sales from retail shops
*Narita estimates to handle 2.4% more passengers during summer vacation
*Transport Minister says: "The Narita runway project must be completed in FY2009"
*JAL air transport result for May 2006

*JATA survey shows bright prospect for the travel market this summer

Japan Association of Travel Agents (JATA) reported on June 28 that both of the overseas and domestic travel markets enjoyed higher DI (Diffusion Index) than originally expected in its latest travel market trends survey. Also, the survey finds that higher DI will be expected this summer from July to September mainly because of favorable recovery of the Japanese economy.

This Week Headline
*JATA survey shows bright prospect for the travel market this summer
*The market scale of B to C accommodation and travel reached 359.5 billion yen
*Japanese departures resulted in the highest monthly record in May
*JAL PAK gave up resumption of dividend due to operating loss for FY2005
*UAL and COA follow NWA and AAL to cut commissions to travel agents
*Narita enjoyed 4% increase of passengers for May
*Kansai resulted in 4% growth of passengers for May
*JAL Ways suffered from 98.6% reduction of net profit
*ANA to introduce LOSA for the firsttime in Japan