JAPANESE HOTEL GOES BANKRUPT BECAUSE OF THE CORONAVIRUS

Recently, one of the Japanese hotels filed for bankruptcy. The reason is the outflow of tourists and a significant number of cancellations. It was reported by The Japan Times, citing a representative of a credit agency. It is noted that coronavirus led to the bankruptcy of the company for the first time since its inception.

Hotel Fujimiso is located in the city of Gamagori, Aichi Prefecture. Because of the epidemic, tourists started cancelling their reservations from the beginning of January, effectively depriving the company of all the money. It is noted that the main audience of the hotel were guests from China. The amount of the hotel’s debt has not been disclosed yet, but it is known that the hotel is not new - it has existed since 1956. Now, the branch of the Nagoya District Court of Toyohashi will be involved in its bankruptcy process.

The situation in China is very serious: quarantine is declared in many cities, it is forbidden to go outside, and the products are delivered by special services. For the moment, over 2,700 deaths because of coronavirus have been reported in China, which is probably not the final number. But there is a piece of good news - almost 30,000 people have already been discharged from the hospitals out of more than 78,000 patients. 

At the same time, those who have become infected with a dangerous virus are also being registered in other countries. Due to this situation, the authorities are taking measures to reduce tourist migrations. In particular, flights to China are canceled, which is the main reason for air carriers to have losses.