Invincible Investment Corporation Reports 7.6% Year-on-Year Decrease in Net Operating Income For The December 2019 Fiscal Period
27 January 2020- The overall Portfolio NOI for the December 2019 fiscal period (from July to December) decreased by 7.6% year-on-year due to the impact from multiple major typhoons, the prolonged trade and diplomatic dispute between Japan and South Korea which resulted in fewer inbound travelers from South Korea. The decline in NOI for December 2019 ( 17.2%) stems primarily from fewer inbound travelers from South Korea as stated. Guests from South Korea only represented 3.3% of INV’s total hotel room revenue3 from January to June 2019, however this declined to 1.1% in November 2019 and remained the same in December 2019. The decline in guests from South Korea is in line with the December 2019 figures announced by Japan National Tourism Organization (JNTO), showing a 63.6% decline in visitor arrivals from South Korea to Japan year-on-year. The government introduced a subsidy program for Hokkaido in October 2018 to facilitate the recovery in tourism in the quake-hit region, which helped the performance in December 2018. The absence of the Hokkaido government subsidies in December 2019 adversely affected monthly performance.