*JTBF forecasts the most Japanese ever will go abroad through 2006

Japan Travel Bureau Foundation (JTBF) revealed at the 15th Travel Trend Symposium on December 21 that the number of Japanese overseas travelers for 2006 will reach 17.95 million, approximately 3.6% more than 2005. The forecasted number will hit a record high, exceeding the result of 17.8 million for 2000. Also, JTBF estimates that the number of Japanese overseas travelers for 2005 will finally increase by 2.9% to 17.32 million compared to the previous year.

It is probable that the number of Japanese overseas travelers will largely grow for 2006 if tourist demands for China and Korea rebound from the downturn resulting from the anti-Japan demonstrations in those countries, according to JTBF. On the other hand, JTBF forecasts that the continuous high oil price, reorganization of flight networks and tight supply of hotel rooms will particularly discourage the annual number to reach 18 million for 2006.

This Week Headline
*JTBF forecasts the most Japanese ever will go abroad through 2006
*HIS succeeded in increasing both sales and profit for FY2005
*"Visit INDONESIA" will begin in four major markets including Japan
*The FY2006 budget draft approves 2.8% increase of tourism-related budget
*The budget draft approves a large increase of the FY2006 airport development budget
*The Haneda re-expansion program will enter the full-scale development phase
*ANA unveiled the first gold-livery B737-700
*LOT will serve direct charter flights from Narita to Warsaw next summer
*Newcomers contributed to increase domestic passengers for November

*JTB will continue launching new companies to meet diversified market demands

JTB President Takashi Sasaki said of the complete company split-up from April 2006 at an interview with the Wing Travel Weekly, "I think there will still be gaps between market demands and 175 companies ofJTB Group, which will completely be span off on April 1 2006. To fill the gaps, JTB Group will expand its businesses by launching new companies or purchasing different companies if necessary." JTB Group should be an active organization to create around 10 new companies a year, he added.

Citing an example, Sasaki said, "If JTB Ground Tour & Service, a new company for total services to senior customers particularly, succeeds in Tokyo, the same kind of companies can be launched in other major cities." Also he indicated that JTB Group may launch a specialty company for space travel when the business scale expandsto some extent.

This Week Headline
*JTB will continue launching new companies to meet diversified market demands
+Priority investments for positive business development
+Russia or Eastern Europe will be promising destinations
*Aeroflot hopes to expand its flight businesses for Japan after 2007
*The survey finds "travel"is the third enthusiasm among 20's to 40's females
*ANA President is positive in challenging Chicago flight again
*JAL and Yahoo! Japan tie up for booking and selling of domestic flight tickets
*Narita estimates to handle 2% more passengers during this New Year holidays
*Emirate will start serving Dubai-Centrair flights next June
*Kansai reduced international passengers for November
*JAL air transport result for October 2005
*JAL and ANA have taken emergency measures for their B777 engines
*Star Flyer took delivery of the first A320

*ANA is confident of ensuring full-year profit on the international flight business

ANA Executive Vice President Katsuhiko Kitabayashi, who is in charge of international & regulatory affairs and alliance & internationalaffairs, said at an interview with the Wing Aviation Press that ANAwill be able to maintain profit on the international passenger flight business for a full year of FY2005 as well. Also, he revealed that ANA is paying attention to the latest B737-700s operations on both domestic and international routes and new flight businesses for India or Russia to reinforce the profitability on the international passenger flight business. "It is important for the ANA Group to seek more effective flight operations," he added.

This Week Headline
*ANA is confident of ensuring full-year profit on the international flight business
+Narita South Wing is abig epoch for ANA
*JTB survey: travel demand for New Year holidays will be upward
*HIS has accepted 17% more overseas travel bookings for New Year vacation
*Economic spillover effects from travel consumptions rose in FY2004
*JAL PAK completely closed its land operation in Saipan
*Russian Pulkovo will serve five charter flights for Haneda next year
*Centrair growth has cooled down after the Expo ended
*Japan and Thailand have agreed to increase flights
*NCA and Cargolux work together for B747-8F
*Air Do largely increased both revenue and profit for the first half