Fukushima hotels expect 50 percent income drop

8 years ago by in Travel Tagged:

A hotel association in Fukushima is planning to ask Tepco, the operator of the crippled nuclear plant in the region, to reevaluate its criteria for calculating compensation for the tourism industry, as local businesses have been hit particularly hard by the ongoing crisis.

Hotels and traditional inns in Fukushima Prefecture are expecting income drops of about 50 percent in the year following the March 11 natural disasters.

A survey made by the Fukushima Prefecture Ryokan Hotel Association asked local tourism businesses in May how they feel about the expected damage after the disasters. About half of the members, or 300 companies, responded to the survey.

The 300 members had a combined income of about Y70 billion in the year prior to the quake and tsunami. They expect the value to be reduced to half, at about Y35 billion, in the following 12 months.

Tepco has announced last week it intends to reduce compensations for the tourism industry in Fukushima, Ibaraki, Tochigi and Gunma prefectures by 20 percent. Their explanation is that the natural disasters would have disrupted the tourism industry even if the nuclear crisis would have not occurred.