As the effects of the new coronavirus continue to prolong, there are a series of moves in the tourism-related industry to reduce capital by reducing capital.
Due to the tax system, it seems that there is an aim to become a small and medium-sized enterprise and reduce the burden, and announced that the major travel agency "Nippon Travel Agency" will also reduce its capital.
According to that, Nippon Travel Agency will carry out a "capital reduction" on the 14th of next month to reduce the current capital of 4 billion yen to 100 million yen.
Regarding the reason, the company says, "To ensure the flexibility of future capital initiatives and to lead to the soundness of the financial base."
In the tourism-related industry, there are a series of moves to “reduce capital” as travel demand continues to decline due to the impact of the new corona.
In addition to JTB, the largest travel company, Fujita Kanko, which operates business hotels, has also reduced its capital to 100 million yen.
Companies with capital of 100 million yen or less are considered to be small and medium-sized enterprises under the tax system, so it seems that travel to Japan also aims to reduce the tax burden.