Hotel Bankruptcies in Japan Jumped 57 Percent in 2020

The number of bankruptcies in the hotel industry in Japan in 2020 jumped 57.3% from the previous year to 118, according to Tokyo Shoko Research Ltd, the Japan Times reported. The annual total surpassed 100 for the first time since 2013, mainly due to the impact of the novel coronavirus epidemic, the credit research firm said Tuesday. Liabilities left by collapsed hotel operators totaled ¥58 billion, with failures of midsize or larger firms increasing. By prefecture, 12 of the bankrupt companies were located in Nagano, home to many spa and ski resorts, 11 in Tokyo and nine in Shizuoka. “The situation is expected to remain severe this year” for the hotel industry, a Tokyo Shoko Research official said. “Bankruptcies are feared to increase further.” Meanwhile, the number of bankruptcies in the travel industry in Japan last year went up 4.0% to 26, rising for the first time in three years. Read more.