---
title: "EGL HOLDINGS: Tariffs and rumors affect travel sentiment, expected to normalize in July"
description: "EGL HOLDINGS Executive Director Huan Guoquan stated that in the first half of this year, due to the impact of tariffs and earthquake rumors, travelers adopted a wait-and-see attitude, resulting in a d"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/242509214.md"
published_at: "2025-05-30T04:23:45.000Z"
---

# EGL HOLDINGS: Tariffs and rumors affect travel sentiment, expected to normalize in July

> EGL HOLDINGS Executive Director Huan Guoquan stated that in the first half of this year, due to the impact of tariffs and earthquake rumors, travelers adopted a wait-and-see attitude, resulting in a decline in the number of visitors to Japan in February and March, with a slight rebound in April due to the cherry blossom season. He expects that after July, the number of travelers will return to normal, and summer tour prices are expected to drop to around five to six thousand yuan. The group operates two hotels in Japan, with satisfactory occupancy rates. Although the number of Hong Kong guests has decreased, the number of guests from Taiwan and Europe has increased. The group plans to open new hotels, but the timing is yet to be determined, and it will reduce store sizes to lower costs

Dongjing You (06882.HK) Executive Director Huan Guoquan attended the shareholders' meeting and later told reporters that in the first half of this year, the number of travelers was generally cautious due to tariffs and rumors of earthquakes in Japan; the number of visitors to Japan dropped in February and March, but slightly rebounded in April due to the cherry blossom season. He expects that it will not be until July, when the earthquake rumors dissipate, that the number of travelers visiting Japan will return to normal, and there may be a "small spring" in tourism.

Huan Guoquan pointed out that recent airline fare reductions have lowered costs. In the past, the cost of group tours to Japan during the summer vacation generally exceeded ten thousand yuan, even reaching twenty or thirty thousand yuan. This year, he expects that transactions can be made for five to six thousand yuan during the summer vacation, estimating that some customers will take advantage of the low prices to join group tours, potentially attracting some people who usually do not travel.

He stated that with the strengthening of capacity in mainland China and improvements in public safety, along with food that suits the taste of Hong Kong residents and high cost-performance products, there has been a noticeable increase in mainland routes, with long-distance tours to places like Xinjiang and the Silk Road seeing an annual increase of over 20%.

The group currently operates two hotels in Japan, and Huan Guoquan indicated that the current occupancy rate is satisfactory. Although the number of Hong Kong guests has decreased, there has been an increase in guests from Taiwan and Europe, leading to a cautiously optimistic outlook for the third and fourth quarters. He also mentioned that the group has always planned to open new hotels, but currently needs to "rest and recuperate" after the pandemic, and the timing for new hotel openings is not yet determined.

Regarding storefronts, Huan Guoquan stated that rent is the largest cost for travel agencies, so the group tends to reduce store sizes to minimize costs and will not open new stores for the time being; currently, online bookings account for about a quarter of the total travelers

### Related Stocks

- [06882.HK - EGL HOLDINGS](https://longbridge.com/en/quote/06882.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.