Softbank Corp. (Japan) (OTCMKTS:SFTBY) surged above the previous 3 days’ highs to hit a new monthly high and finished the last trading session with a gain of 2.82%. The volume was not supportive though as the volume of the day at 159,000 was much lower than the daily average of 307,000. If the volume pattern is not enough to raise suspicion about the actual strength of the bulls, then the proximity of the long term channel upper boundary around $29-$30 must be considered. The supply area in that zone is strong enough to initiate a strong correction.
Following the changing trends of industry, Softbank Corp. (Japan)(OTCMKTS:SFTBY) wants to target Chinese tourists coming to Japan. The telecomm and internet firm reported that it has formed an inbound digital travel firm that will be listed on travel marketplace of Alibaba Group Holding Ltd (NYSE:BABA) starting November 11,
The new firm, a fully-owned subsidiary unit of Softbank, plans to offer its services to Chinese visitors seeking different options to well-trodden locations in Japan. Here, it is vital to note that Softbank has more than 30% stake in ecommerce firm Alibaba Group. The management expressed that so far, the popular ‘golden route’ for tourists group includes traveling to main towns including Kyoto and Tokyo.
Softbank new firm wants to meet the increasing needs of independent visitors who seek to explore different parts of Japan. The business projects revenue of about Y20 billion each year by 2020, the year in news. Olympic Games are scheduled to be held in 2020 in Tokyo. In order to progress with its plans, Softbank has sought guidance from Japan’s largest travel unit, JTB Corp.
Softbank plans to take benefit from the growing travel market in Japan. The count of Chinese travelers visiting Japan has surged considerably in recent years. It is a major boost for nation’s economy, particularly in the hard-hitting global market scenario.
Following a big drop in the domestic currency that started back in 2012, almost four million Chinese tourists visited Japan so far in this year, up from 2.4 million figure recorded in 2014. The rise in tourists definitely demonstrates why Softbank wants to target Chinese tourists to Japan. In addition to Softbank, the other companies seeking to benefit from changing trend are Rakuten Travel, the digital tourism entity of Rakuten Inc. and, other is NTT Communications Corp.