Japan Travel Finds No Fraud Other Than Aichi Prefecture in a Comprehensive Inspection of 2457 Projects Nationwide

On June 28, 2023, Japan Travel Co., Ltd. announced the full extent of the discovery of fraud in Aichi Prefecture's nationwide travel support business operation operations, the results of a company-wide inspection, and measures to prevent recurrence.

After the fraud was discovered, we investigated 2,457 cases of public-related projects involving the Japan Travel Group from April 2020. As a result, no new irregularities were confirmed, other than the inflated labor costs announced in May (5,640,749 yen in terms of invoices) for the Aichi Prefecture project. The breakdown of the cases covered in the survey was 53% for public health center support projects such as the operation of vaccination sites, 22% for economic measures, 22% for tourism-related projects, and 3% for other businesses.

Japan Travel Agency reduced the amount of illegal work for its business in Aichi Prefecture and withdrew from the JV (consortium) on June 9. In addition, we reduced operating and administrative expenses from outsourcing fees and took disciplinary action against 13 people involved in fraudulent claims. In addition, we announced measures to prevent recurrence, reform of the organizational culture, strengthen education and training, and strengthen the internal control system. Japan Travel Agency has stated that it will "sincerely make efforts to restore trust and prevent recurrence."

Aichi Prefecture's nationwide travel support project was outsourced by the prefecture to JTB for the first time, and the company subcontracted it to Japan Travel, Kin Japan Tourist, Tobu Top Tours, and Meitetsu Kanko. Aichi Prefecture said, "Since it is not a direct contract partner, we will not suspend the appointment (of Japan travel)" announcement It does.