*The tourism-related budget draft for FY2007 totals6,409 million yen

The FY2007 budget draft for the tourism-related programs, which was releasedon December 20, totals 6,409 million yen, including management subsidy to Japan National Tourist Organization (JNTO), which is 1% lessthan the FY2006 budget. For five major tourism programs, the budgetdraft reaches 4,069 million yen, 2% more than the FY2006 budget.

This Week Headline
*The tourism-related budget draft for FY2007 totals 6,409 million yen
*HIS pays an increased dividend with25% increase of consolidated ordinary income
*AB-ROAD survey finds a share of skeleton-typed tour reduced in 2005
*Airlines will be busier this New Year than a year earlier
*United Airlines has decided to suspend Kansai-Chicago flight service
*Kansai forecasts 4% more departures during this New Year holiday season
*Almost 150,000 Japanese will depart overseas from Centrair this New Year
*Japan and India agree to triple passenger flights a week between both countries
*Airport development budget for FY2007 is reduced first time in the last four years

*Travel organizations will unite to make Japan a tourism country

Tourism Industry Association of Japan (TIJ) Chairman Ryuji Funayama proposedto launch a regular conference by chairmen of 12 tourism-related organizations at Tourism Summit 2006 on December 12, making an opening remark that it is time for the travel industry to take particularactions to make Japan a tourism country. The TIJ board meeting already approved launch of a new conference, and after other 11 organizations accept the proposal, the first conference will probably be held in January next year.

This Week Headline
*Travel organizations will unite to make Japan a tourism country
*Hong Kong Disneyland further focuses on the Japanese market
*KAL intends to fly into Shizuoka Airport as soon as it opens in 2009
*Fifty major travel agents increased overseas travel business for October
*IATA airfares for Korea and Southeast Asia will be raised by 7% in FY2007
*Bangkok Airways has just begun serving Fukuoka flights
*ANA has decided to raise domestic airfares by 2.7% on average
*Mt. Fuji Shizuoka Airport will begin building a terminal next September

*JTB survey finds Japanese overseas travelers will be up 3.2% during this New Year

JTB recently released the travel movement survey during this New Year holiday season (December 23 2006 to January 3 2007), reporting that the number of Japanese overseas travelers is expected to reach 648,000, 3.2% more than a year ago. Including forecasted 29.4 million domestic travelers (0.3% more than a year ago), the total number of travelers during the period may reach 30 million approximately, 0.4% more than a year ago.

This Week Headline
*JTB survey finds Japanese overseas travelers will be up 3.2% during this New Year
*Narita forecasts record-breaking departures and arrivals in this New Year
*Japanese and Chinese ministers agreed to restart the bilateral aviation talks soon
*CPA now serves six Hong Kong-Narita flights daily with code-share with HDA
*Travel spending and spillover effect in the economy resulted in slight decrease for FY2005
*ANA and Asiana agree to extend the strategic partnership
*ANA resulted in 10.3% increase of international flight passengers in October
*JAL air transport result for October 2006
*Centrair passengers resulted in 5% increase in October this year
*Japan and Brunei agreed with seven flights a week

*JTB posted increase inoperating income by 70% to 21 billion yen for the first half of FY2006

JTB announced the consolidated financial results for the first half of FY 2006 ended September 30 for the first time after restructuring of theGroup. Compared to the same period last year, sales increased by 0.2% to 673.9 billion yen, and cost of sales decreased by 1.2% to 519.7 billion yen. Accordingly gross profit on sales increased by 5.2%to 154.2 billion yen.

This Week Headline
*JTB posted increase in operating income by 70% to 21 billion yen for the first half of FY2006
*"Fly & Drive 2007" will be kicked off on January 26 next year
*HIS launches a new company for individual inbound travel
*AFR & KLM established a new office in Tokyo to complete the integrationin Japan
*JAL and ANA each have a different idea for international flight operations at Haneda
*NCA expects cargo operations at Narita and Haneda will be organized well
*Narita passengers in October were slightly up by 1%
*Both domestic and international traffic at Kansai increased by 3 % after 2 months' drop
*ADO largely reduced midterm ordinary income to 883 million yen