Economic Impact of Indonesian Earthquake Felt in Japanese Tourism and Distribution Sectors

Strategic Insights -

The massive earthquake that struck off the coast of Indonesia's Sumatra island on Sunday has led to a significant economic impact on Japan's tourism and distribution sectors. Japanese travel agencies have reported a sharp increase in cancellations and delays of travel plans to affected resort areas, with over 200 bookings scrapped as of Monday. The Japan National Tourist Organization has revealed that Japanese nationals traveled to Phuket and the Maldives in 2002, totaling 165,000 and 43,000 respectively.

Key Takeaways:

  • Over 200 travel bookings to Phuket and the Maldives have been canceled or delayed as of Monday.
  • JTB Corp. and other major travel agencies are accepting cancellations without penalties.
  • More than 2,000 travelers have reservations for trips to the region over the year-end and New Year's period.
  • The Chennai port in India, a key distribution point for foreign automakers and electronics firms, will be closed until Tuesday, potentially affecting production.
  • Toyota Motor Corp. exports via Chennai transmissions produced in Bangalore to auto plants in Thailand and other areas.
  • Mitsubishi Corp. oversees transport of natural gas from the Arun field in Indonesia, which was temporarily suspended following the earthquake.
  • Inpex Corp. holds concession rights in oil fields and has reported no impact on operations.
  • A dedicated communications line experienced a temporary outage due to a malfunction in an undersea cable but has since been restored.
  • The Stock Exchange of Thailand fell 1.04% from its close at the end of last week, and Thai Airways International Ltd. dropped.

Statistics:

  • 200 travel bookings scrapped or delayed as of Monday.
  • 165,000 Japanese nationals traveled to Phuket in 2002 (Japan National Tourist Organization).
  • 43,000 Japanese nationals traveled to the Maldives in 2002 (Japan National Tourist Organization).
  • 2,000 travelers with reservations for trips to the region over the year-end and New Year's period.
  • 1.04% decline in the Stock Exchange of Thailand from its close at the end of last week.

Sources:

  • "Asia Pulse" (Associated Press)
  • Japan National Tourist Organization
  • Nikkei (Associated Press)
  • Tokyo Stock Exchange
  • Thai Airways International Ltd.
  • Stock Exchange of Thailand
  • Malaysia's broad stock index