Yamaha 2003 Annual Report Download - page 21

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ANNUAL REPORT 2003 19
Sales in this segment amounted to
¥20.9 billion, a 3.2% decrease com-
pared with the previous term, while
operating loss totaled ¥1.1 billion,
compared with an operating loss of
¥1.7 billion in the previous term.
YAMAHA has worked to improve
sales by creating seven management
subsidiaries, each charged with the
comprehensive management of a
specific resort facility.
Sales from the Katsuragi Kitanomaru
resort increased dramatically as it
provided accommodations for Japan’s
national soccer team during the 2002
FIFA World Cup™. In addition,
strong marketing efforts succeeded
in attracting a higher number of
guests to YAMAHA resorts as a
whole. However, the absence of a full
economic recovery in Japan resulted
in decreased segment sales, as the
number of daytime visitors fell, and
we were unable to halt the slide in
returns per guest.
Although no income for the seg-
ment was recorded during the year
under review, we did succeed in
reducing net loss thanks to the imple-
mentation of cost-cutting measures
during the previous term.
YAMAHA has decided to close its
Sunza Villa resort at the end of June
2003, having concluded that there is
little chance of restoring profitability
and positive cash flows from operat-
ing activities. On a similar note, we
have decided to shut down the Kiroro
golf course at the Kiroro ski resort at
the end of October 2003, in light of
the resort’s poor business prospects.
Strategies and Forecasts
In fiscal 2004, given that prospects
for a domestic economic recovery
remain poor, our goal is to maintain a
steady volume of customers and high
quality of service, pay full attention to
safety, improve the efficiency of our
operations, and implement compre-
hensive cost-cutting measures to lower
the breakeven point for profits, there-
by helping return the segment to
profitability.
In addition, we plan to selectively
allocate resources based on the regu-
lar inspection of operations at each
resort facility.
Recreation
Haimurubushi 왘In the restaurant, you
can enjoy original cuisine made from
fresh, local seafood and vegetables.
Haimurubushi 왘The emerald green
ocean of Haimurubushi in Okinawa,
Japan’s southernmost resort area
Kiroro 왘Deep in the pristine wilderness
of Hokkaido, this ski resort
offers comfortable accomodations
and spa facilities.