*KNT focuses on qualitycompetition rather than price competition

Kinki Nippon Tourist (KNT) released Holiday products departed from Tokyo forthe first half of FY2007 on January 18, featuring the new brand name "knt!" on its travel pamphlets. KNT says that the wholeseller will change its business stance from price competition to quality competition with enriched product lineups. For the first halfof FY2007, it particularly focuses its business on the baby boomer generation and honeymooners /wedding couples.

This Week Headline
*KNT focuses on quality competition rather than price competition
*ANA Sales to enrich products for baby boomers in the first half of FY2007
*ANA released the FY2007 business plan including new Narita-Mumbai flights
*MJTC started discussing tourism promotions for Myanmar
*The first-ever direct charters will fly between Japan and Ukraine
*ANA carried 16.3% more international flight passengers in December 2006
*Japanese departures from Narita in 2006 resulted in the highest-ever
*Narita decreased Japanese but increased foreigners in December 2006
*Kansai decreased both internationaland domestic flight passengers

*LOOK JTB is evolving into super package for every market

JTB World Vacations President Masato Ito said at a news conference on January 17, "LOOK JTB is evolving into super package to cover every market including FIT, getting beyond conventional package tours,"when the whole seller released outline of LOOK JTB products for the first half of FY2007. JTB estimates LOOK JTB customers for FY2006 at 1,364,000, 4.4% more than FY2005, and aims to increase those by 3.4% to 1,410,000 for FY2007, compared to the previous fiscal year.

This Week Headline
*LOOK JTB is evolving into super package for every market
*JAL Group made an international flight plan for FY2007 to seek profitability
*Japanese departures increased by 0.8% to 17.45 million in 2006
*JATA launches a promotional committee for tourism exchange events in China
*JAL officially announces to introduce the first class on domestic flights
*Malev of Hungary to serve more direct charter flights for Budapest
*Both leaders agreed to realize Haneda-Hongqiao charter flights within this year
*Kansai passengers slightly decreased in December 2006

*Minister Fuyushiba is ambitious to accomplish 8 million foreign visitors

Minister of Land, Infrastructure and Transport Tetsuzo Fuyushiba made a New Year remark at a New Year party with travel industries on January 10 this year that the government is making every effort to welcome8 million foreign visitors this year. The number of foreign visitors for the first eleven months of 2006 was up 8.6% to 6,748,700 overthe same period 2005. The annual number is expected to total 7.3 million foreign visitors, slightly short of the initial target of 7.5million. To accomplish the target in 2007, year-on-year growth of 10% will be required.

This Week Headline
*Minister Fuyushiba is ambitious to accomplish 8 million foreign visitors
*JATA Chairman: "The travel industry needs new sensitivity to the times"
*Skygate begins dealing with dynamicpackages online
*ANA carried the most-ever international passengers during this New Year
*JAL is to provide first class seats on domestic flights
*JAL will cut almost 3,000 jobs for next three years
*Narita achieved the most-ever users during the New Year holiday season
*JAL and ANA increased New Year international flight passengers from Centrair
*Hiroshima handled the most-ever international flight passengers in 2006
*JAL air transport result for November 2006

*JTB conservatively forecasts overseas travelers for 2007 will just be up 1.4%

JTB released the travel movement forecast for 2007 on December 26 last year,reporting that Japanese overseas travelers are expected to increaseby 1.4% to 17.9 million over 2006. The forecast also says that domestic travelers and foreign visitors are expected to increase by 0.5% to 320 million and by 6.2% to 7.7 million respectively, compared to 2006.

This Week Headline
*JTB conservatively forecasts overseas travelers for 2007 will just be up 1.4%
*Expedia aims to begin serving dynamic packages in Japan in the near future
*HKTB extends target segments by appealing new Hong Kong attractions
*JAL focuses on charter flight services from Haneda to Hawaii for local demands
*JAL PAK is selling JAL charter products for Majuro for the first time
*ANA will serve B737-700ER with only 48 seats on Centrair-Guangzhou
*JAL and ANA CEOs made New Year speeches for businesses in 2007
*Narita resulted in monthly record-high passengers and aircraft movements inNovember 2006
*All of nine domestic airlines increased passengers in November 2006