Japan to Resume Tourism in June; Only Packaged Tour for Now

Tourists in traditional Japanese kimonos walk in Asakusa district in Tokyo, July 27, 2020. (AP)
Tourists in traditional Japanese kimonos walk in Asakusa district in Tokyo, July 27, 2020. (AP)
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Japan to Resume Tourism in June; Only Packaged Tour for Now

Tourists in traditional Japanese kimonos walk in Asakusa district in Tokyo, July 27, 2020. (AP)
Tourists in traditional Japanese kimonos walk in Asakusa district in Tokyo, July 27, 2020. (AP)

Japan will open its borders to foreign tourists in June for the first time since imposing tight pandemic travel restrictions about two years ago, but only for package tours for now, the prime minister said Thursday.

Beginning June 10, Japan will allow the entry of people on tours with fixed schedules and guides, Prime Minister Fumio Kishida said.

Tourists from areas with low COVID-19 infection rates who have received three vaccine doses will be exempt from testing and quarantine after entry.

Japan this week is hosting small experimental package tours from four countries, Australia, Singapore, Thailand and the United States. That experiment, which involves only 50 people who received special visas, not tourist visas, is to end May 31.

"Free and active exchange of people is the foundation of economy and society, as well as that of Asia’s development," Kishida told his speech at a Tokyo hotel Thursday.

Japan, while watching the infection situation, will gradually accept more tourists in stages to the level of arrivals before the pandemic, he added.

After facing criticism that its strict border controls were xenophobic, Japan began easing its restrictions earlier this year and currently allows entry of up to 10,000 people a day, including Japanese citizens, foreign students and some business travelers.

Japan will double the cap to 20,000 a day from June 1, which will also include package tour participants, said Makoto Shimoaraiso, a Cabinet official in charge of pandemic measures.

The scale of the package tours and other details will be finalized after officials evaluate the results of the current experimental tours, he said.

It will take some time before foreign visitors can come to Japan for individual tourism, Shimoaraiso said.

Japan this week also eased requests for mask wearing. While masks are still requested on public transportation, hospitals and other public facilities, people can take off masks outdoors where others are not around or talking. Despite the easing, most Japanese so far are seen sticking to wearing masks in public.

Japan’s tourism industry, hit hard by the border controls, is eager for foreign tourism to resume. COVID-19 infections have slowed in Japan since earlier this year and the government is gradually expanding social and economic activity.

Kishida said during a visit to London earlier this month that he planned to ease the border controls as early as June in line with the policies of other Group of Seven industrialized countries, but gave no further details.

Foreign tourist arrivals fell more than 90% in 2020 from a record 31.9 million the year before, almost wiping out the pre-pandemic inbound tourism market of more than 4 trillion yen ($31 billion).



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.