Japanese
tour firm closes

Jetour Corp. wasn't able
to make the payments
on its debts

From staff and wire reports

Jetour Corp., a Tokyo-based travel agency that uses Hawaii as one of its major overseas destinations, closed yesterday because it wasn't able to make a debt payment.

The company said it will file for bankruptcy in Japan on Friday.

The offices of Jetour Hawaii Inc., the Hawaii subsidiary that arranges accommodations and island tours for customers from Japan, were closed today. Doors were locked at the head office in the Waikiki Trade Center and no lights were on inside.

Telephones at that office and at Jetour's Honolulu Airport office were unanswered.

One executive who was reached this morning, Danny Ojiri, vice president of purchasing and planning, declined to comment.

News services in Japan said the parent company, hurt by a weakened demand for overseas travel because of the depreciation of the yen and price-cutting by competitors, was not able to make $15 million payment for airline tickets that were due Monday.

Jetour, considered a medium-sized tour business in Japan, handed its departing customers over to a competitor, Tokyo-based H.I.S. Co.

Hawaii officials of H.I.S. said the company was helping some Jetour customers who had bought their Jetour Hawaii packages through H.I.S. retail travel offices in Japan.

Founded in 1969, Jetour sold popular packaged tours and became a well-known name in the Japanese outbound tourist business. Its Hawaii subsidiary has been in business for 25 years.

Sources in Japan said the parent company suffered from substantial interest costs as it financed its operations heavily with loans.

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Reuters and Kyodo news services contributed to this report.