The government said Monday it will expand special loan-guarantees for small and midsize travel firms to help them counter the effects of the Iraq war and the outbreak of severe acute respiratory syndrome.
Beginning Thursday, the Ministry of Economy, Trade and Industry will double the amount of credit guarantees allocated to smaller travel agents, tour operators and conductors.
Each eligible firm will now be able to obtain credit guarantees of up to 400 million yen for ordinary insurance, 160 million yen for unsecured insurance and 25 million yen in special small-lot insurance.
The credit-guarantee system is operated via local government credit guarantee associations.
Vice Transport Minister Toshiki Aoyama said the volume of businesses handled by the travel industry dropped nearly 15 percent in March on a year-on-year basis.
He predicted a further decline for this month.