Tokyo Shoko Research reported that the number of bankruptcies in the hospitality industry of Japan were up 2.4 times to 72 cases year on year, marking the second most cases in the past 20 years following 87 cases in 2011, the Great East Japan Earthquake year.
Out of the half-year total, 32 companies went into bankrupt due to COVID-19, and the result was the second most following 36 cases in the restaurant business.
Total debts amounted to 42.9 billion JPY, 26.5% less than a year ago, including 5 billion JPY of Royal Oak Resort in Shiga Prefecture and 4.7 billion JPY of Hokkai Kanko in Mie Prefecture.
12 large-scale bankruptcies with debts of more than 1 billion JPY were found, and the most bankruptcies were seen in Chubu area with 21 cases.
In June 2020 only, the number of bankruptcies was up eight times to 16 cases year on year, out of which the COVID-19-related bankruptcies were six cases. Total debts reached 10.2 billion JPY, much more than 270 million JPY in June 2019.