Holiday peak season but... Domestic tourists cancel in droves
"Natural disasters mean no fees collected... Insurance compensation also unavailable," distressed
During Japan's largest holiday, the Obon (お盆) holiday, the fear of the Nankai Trough megathrust earthquake has overlapped, putting the Japanese tourism and accommodation industries, which were aiming for a peak season boom, on high alert. With panic buying occurring and a general atmosphere urging people to refrain from going out, industry insiders are offering refunds without cancellation fees, lamenting whether small business owners have to bear the losses caused by natural disasters on their own.
On the 12th, Japanese media such as the Yomiuri Shimbun reported that accommodation reservations in areas where the Nankai Trough megathrust earthquake temporary information was issued are being widely canceled, and travel agencies and railway companies are collectively offering refunds without charging fees. The Nankai Trough megathrust earthquake temporary information is issued when abnormal phenomena are observed in the Nankai Trough or when the likelihood of a massive earthquake occurring there increases. The Nankai Trough stretches extensively from Shizuoka Prefecture in central Japan to the eastern sea area of Kyushu in the south. Accordingly, this temporary information was widely issued covering Kyushu, Shikoku, the Chubu region, and parts of the Kansai area.
The Nankai Trough, known as 'Nankai Trough,' is a region with a high likelihood of a major earthquake caused by the Nankai Subduction Zone. (Photo by NHK)
Normally, this period is when domestic tourism is active, coinciding with the solar calendar Obon holiday on the 15th. However, Japanese media explain that the peak season boom has almost vanished due to this earthquake. The online media Abema Times introduced a case of a Japanese-style inn (ryokan) in Miyazaki Prefecture, where the earthquake occurred on the 8th, reporting that out of 30 fully booked reservations during the peak season, 26 were canceled. Since customers did not cancel intentionally but due to a natural disaster, no cancellation fees could be charged, and the inn reportedly suffered losses amounting to about 500,000 yen (approximately 4.65 million KRW).
Other places are in similar situations. Shirahama Town in Wakayama Prefecture, a seaside hot spring village where domestic tourists flock during this period, has had to close four beaches for a week as local governments emphasized the need for caution. This area had already canceled its annual fireworks event on the 10th. Accommodation businesses are facing similar circumstances. TBS cited the case of "Ryokan Musashi," reporting that on the 9th alone, 30 cancellation calls were received, with the reasoning that "if the beaches are closed, there is no point in traveling."
A beach in Miyazaki Prefecture is deserted without tourists due to a bathing ban. (Photo by ANN News)
Hotel chains have also taken similar measures. Seibu Group's hotel chains Seibu and Prince decided to waive cancellation fees for accommodations canceled due to railway delays or flight cancellations caused by the earthquake. Tokyu Hotels & Resorts is also offering free refunds without fees at some of its locations.
Railways, airlines, and travel agencies are also on high alert. JR branches operating Shinkansen and other railways have decided not to charge fees for refunds or changes on tickets departing from or passing through areas where temporary information was issued. Additionally, Japan Airlines (JAL) and ANA are offering refunds or changes without fees for flights departing from Miyazaki Airport, where the strong earthquake occurred. Travel agency JTB has decided to waive cancellation fees for tour packages, including train tickets and airline tickets, if accommodations cannot operate due to the earthquake.
With consecutive cancellations during the peak season and no cancellation fees being charged, small businesses are facing significant losses. The owner of a ryokan in Miyazaki Prefecture told Abema Times, "Regarding customer cancellations due to natural disasters, we looked into whether insurance could compensate the business, but there is no coverage for business losses in such cases," expressing frustration.
He added, "While the Meteorological Agency's issuance of temporary information is not wrong, the government should also consider the economic impact caused by it. Support funds like those during COVID-19 would be helpful."
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