CORPORATE SOCIAL RESPONSIBILITY REPORT

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Corporate Social Responsibility Report

H.I.S. Group CSR Report 2017 CONTENTS Interview with H.I.S. Group Chairman................................................................................................................................... 4 Interview with H.I.S. Group Vice Chairman......................................................................................................................... 8

Challenges to improve the corporate value of H.I.S.

Training people who become leaders of the next generation........10 Contribution to world peace....................................................................12 Activities related to the theme park business.....................................13

Harmony with local communities

Promoting travel to Japan from overseas offices................................14 CSR activities from overseas offices........................................................16 Contribution to regional development..................................................18

H.I.S. JAPAN Discussion........................................................................................................................................................... 20

Power of travel

Accessible tourism......................................................................................22 Traveling to learn and interact................................................................24

Overview of the H.I.S. Group

Business performance

The H.I.S. Group is a corporate group consisting of H.I.S. Co., Ltd. and its 107 subsidiaries and 14 associated companies. Its main businesses include travel business, the Huis Ten Bosch Group, hotel business, transportation business and the Kyushu Sanko Group. The H.I.S. Group is aiming to contribute to local communities, protect cultural assets, the natural environment around the world, as well as sustainable development through its business activities.

Business segments of the H.I.S. Group and sales ratio (Fiscal Year 2016) The Huis Ten Bosch Group 6.1%

600000

Huis Ten Bosch, Laguna Ten Bosch among 14 other companies

Sanko 479,478 500000Kyushu

Travel business4000003.9%

88.9%

300000

523,246

Group

537,456

523,705

Kyushu Sangyo Kotsu Holdings, Kumamoto Ferry, Sanko Bus, among 11 other companies

Hotel business

1.3

200000

THE WATERMARK HOTEL GROUP PTY, GUAM

Local affiliates around the world, % REEF HOTEL, among 10 other companies 100000 Orion Tour, Japan Holiday Transportation business % 0 75 companies in total ASIAyen) ATLANTIC 2013 AIRLINES 2014 2015 2016 (million

0.6

Others 0.0%

2

H.S. Insurance among 10 other companies

Sales

600000 500000

479,478

523,246

537,456

523,705

2014

2015

2016

400000 300000 200000 100000 0 (million yen)

2013

Operating profit 25000 19,970

20000 15000 10000

15,906

12000 4000 0

14,274

11,843

24000 5000 20000 0 2013 (million 16000 yen) 15,203 8000

H.I.S. Group CSR Report 2017

(consolidated)

22,685 19,016 2014

2015

2016 8,648

Dedication to customers

Pursuit of customers’ satisfaction............................................................26 New proposals for travel...........................................................................28

Pursuit of employees’ satisfaction

The working environment and development of human resources.......29 Workplace Improvement Department .................................................31

Coexistence with nature

Travel to explore environmental issues ...............................................32 Huis Ten Bosch Next-generation energy plant ...................................33

600000 500000

479,478

523,246

537,456

523,705

400000

Management

300000

200000



25000 20000 15000

19,970 15,906

14,274

11,843 CSR policy and system................................................................................................................................... 34 10000

Corporate governance................................................................................................................................... 35 5000

100000

Special discussion...................................................................................................................................... 36 0 0 2014 2015 2016 2013 2014 2015 2016 (million yen) (million yen) 2013 ISO26000 Core subject comparative table........................................................................................ 38 Third party opinion.................................................................................................................................... 39 25000 19,970

20000 15000

15,906

14,274

11,843

10000 Ordinary profit 24000 5000

Company

Overview 12000

22,685

20000 0 2013 (million 16000 yen) 15,203

19,016 2014

2015

12000

2016 8,648

8000

2013

2014

2015

2016

Current net profit 12000 10000 8000

10000 Registration 8,903 number 8000

Capital fund 6000 4000

4000 2000 0 (million yen) 2013

267 2014

2015

2016

11,000 million yen (as of October 31, 2016)

0 office Head (million yen) 2013

267 Shinjuku Oak Tower 29th floor, 6-8-1 Nishi Shinjuku, Shinjuku, Tokyo 163-6029 2015 2014 2016

Sales

523.7 billion yen (consolidated performance in October 2016)

Number of employees

14,380 employees(the entire Group, as of October 31, 2016)

Affiliated company

[Travel business] Orion Tour H.I.S. INTERNATIONAL TOURS (NY) INC. and 73 companies [The Huis Ten Bosch Group] Huis Ten Bosch Co., Ltd. and 13 companies [Hotel business] THE WATERMARK HOTEL GROUP PTY LTD. and 9 companies [Others] Kyushu Sangyo Kotsu Holdings and 21 companies

9,050

6000

10,890

Travel business #724 registered by the Commissioner of Japan 9,050 Tourism Agency

December 19, 1980

10,890 8,903

H.I.S. Co., Ltd. (First Section of the Tokyo Stock Exchange: Company code 9603)

Establishment 2000

4000 0 (million yen)

Corporate overview

As of October 2016

H.I.S. Group CSR Report 2017

3

Corporate philosophy of the H.I.S. Group

To work in accordance with the laws of the universe and contribute to the creative development of humanity and world peace

Establishment of a new corporate group philosophy

4

H.I.S. started as a travel agency, but as expanded the

of humanity and world peace.” This new philosophy

range of its business in keeping the travel business at

means that we and the organisms that live in the

the core of its operations, but also by adding theme

vast universe must respect the laws of nature,

parks, hotels, transportation business and energy

respect its balance when we create, make changes

business. It is now operating as the H.I.S. Group while

and improvements. H.I.S. conducts business with

maintaining communication and cooperation among

the ideal of contributing to world peace.This is an

the affiliated companies.

idealistic goal and represents the existing values

H.I.S. recently established a new group corporate

of the H.I.S. Group. The H.I.S. Group is aiming to

philosophy: “In accordance with the laws of the

become a corporate entity that conducts businesses

universe, we contribute to the creative development

contributing to world peace.

H.I.S. Group CSR Report 2017

Sustained contribution to creative development, humanity and world peace under the new organization H.I.S. Co., Ltd. President and Chairman of the Executive board Chief Executive Officer (CEO)

Hideo Sawada

Continue to challenge ourselves rapidly and boldly The H.I.S. Group started to implement new

also increased, and the total number of employees has

organizational and administrative structures from the

exceeded 14,000 people.

37th fiscal year to fulfill corporate responsibilities and

Under such circumstances, the H.I.S. Group believes

expand the Group ahead of the celebration of its 40th

that it needed a drastic organizational reform for

anniversary in 2020.

further growth.

The environment of the travel business has been

The main concern was the establishment of a defined

drastically changing. When H.I.S. began, personal

business structure to respond to the business

computers were still uncommon, not to mention

expansion. While each business enjoys greater

smartphones. Today, however, most travelers have

independence, gains authority and responsibility, they

smartphones and use them to gather information, plan

accelerate their growth by making bold and quick

trips, and to enjoy their journeys. Future growth in the

business decisions. In order to supervise the entire

travel business cannot be expected unless we build a

system, I perform the duty of president because I

new business model.

am familiar with each business. Everyone is going to

The H.I.S. Group is expanding and now covers a wide

work towards the growth of the H.I.S. Group with the

range of businesses, including theme parks(ie. Huis

authentic pioneering spirit of this company under the

Ten Bosch), hotels, robotics businesses, and electricity

new business administration structure.

businesses. The number of companies in the group has

The H.I.S. Group business administration structure CEO Admin. Dept. of Consolidated Group

Global online business

Travel in Japan Subsidiary companies' business

H.I.S. Japan Inbound

H.I.S. JAPAN

H.I.S. Overseas Travel and Domestic Travel Business

Grobal Business

Travel business of overseas branches

M&A business

Cooperative relationships is development in this section

Electricity business

Theme park business

Robotics business

Hotel business

Air transport business

Insurance business

Kyushu Sangyo Kotsu Group

H.I.S. Group CSR Report 2017

5

Robotics business based on the latest research The robotics business has been developed by

such as retrieving past data, their use will increase

encouraging open innovation ahead of its time while

productivity and shorten work time. Humans will then

incorporating the latest research in Huis Ten Bosch. The

be able to invest their energy in creative work and

“Henn-na Hotel” in which robots handle nearly 90% of all

participate more in artistic and cultural activities.

hotel operations is the first of its kind as a result of this

We also established a new company in January 2017

business. The Henn-na Hotel is also a cutting-edge hotel

to further accelerate the robotics business, research and

in terms of energy efficiency and environmentally friendly

development, With facilities in Shenzhen, China and in

features. Maihama Tokyo Bay, the second hotel of this

Kyushu University which develop technologies related

kind, opened its doors in March 2017. This business is

to the Internet of Things (IoT*) in order to keep up with

aiming to expand globally.

the rapid innovation. We are going to connect these

T he suc c e s s f ul us e o f r ob o t s in t he Henn - na Ho t el

international centers with the ones in Japan in order to

drastically expanded the possibilities for robots to support

strengthen the robotics’ business not only in Japan but in

people in new ways, different from their conventional

the world with a broader perspective.

use in factories. With the future advancement of artificial intelligence (AI), robots with AI will handle simple tasks

*IoT:The addition of Internet connection between typical IT devices such as computers, servers, and printers to other

Through various businesses we contribute to world peace The world's most productive crops’ farm in Huis ten

presence, but the services offered by actual offices also

Bosch is going to shift from the experimental stage to

have a unique role in promoting the attractiveness of travel.

the next as a new business. The numbers of contracts

The H.I.S. Group is supporting the development of manned

for the electricity business is steadily increasing. We are

spacecrafts with next-generation engines. People have

developing new power plants, and preparing to generate

been dreaming of travelling to outer space, and it is

additional power. Huis Ten Bosch is transforming into

becoming an attainable dream.

a tourism town of the future. It is also preparing for an

Finally the travel industry contributes to world peace by

unprecedented type of entertainment using augmented

allowing for encounters and interactions beyond borders

reality (AR) technology.

and improves mutual understanding among people.

The number of travelers in the world is rapidly increasing,

Industries such as the electricity business, agriculture, and

and inbound travel to Japan offers great possibilities. More

robots are also innovative businesses with the possibility of

people are also traveling overseas from Japan seeking

solving food and energy issues which may cause conflicts.

opportunities to learn and grow. It is important to become

The H.I.S. Group is proud to engage in those businesses

competitive against OTAs by strengthening our online

and tackles new challenges with a sense of duty.

The H.I.S. Group will grow larger with its employees as a company that creates the future The H.I.S. Group must further improve the environment

life balance, safe from exhaustion, and whether they

and working conditions for its employees in order

are staying away from trouble. Employees should enjoy

to become a company which contributes to world

working with a sense of satisfaction, which improves

peace. More than 14,000 employees already work

productivity, pleases customers, and increases profits.

for the entire H.I.S. Group. The exchange of opinions

These results cannot be achieved by themself by relying

takes longer when an organization grows larger. The

on the structure of the company, each person must feel

company's higher management must make efforts

concerned and engage in team effort to achieve these

to listen to their team's opinions and in return, team

results. Such cooperation expands our business, benefits

members must express their ideas and opinions to their

to our customers and contributes to world peace.

managers. The H.I.S. Group will build an organization

The H.I.S. Group keeps growing as a company that

which encourages smooth communication.

creates the future under the new corporate philosophy

The H.I.S. Group is committed to the sound management

“In accordance with the laws of the universe, we

o f t h e o r g a ni z a t i o n b y m o ni t o r in g t h e e mp l o y e e s

contribute to the creative development of humanity

insuring that they are working while respecting nature,

and world peace” .

that they are not overworking, but maintaining a good

6

H.I.S. Group CSR Report 2017

New first step towards space travel

- The development of manned spacecrafts with next-generation engines

The H.I.S. Group has started working towards the

systems can be repeatedly used like regular aircrafts.

concretisation of leisure space travel. On October

The future plans are that the technical experiments

28th, 2016, H.I.S., PD AeroSpace, and ANA Holdings

of the new engine be completed by October 2017,

agreed to a capital tie-up to commercialize space

and the unmanned vehicle by reaches 100 kilometers

travel and space transportation through private in-

in altitude by October 2018. Two years later in

vestment.

O c t ober 2020, manned v ehicl e s shoul d reach

P D A e r o S p a c e i s o p e r a t in g a b u s in e s s t o b uil d

the same

low-cost and convenient space transportation

altitude.

infrastructures. The company is developing the world’

The goal

s first next-generation engine which can switch from

is to start

a jet engine to a rocket engine to allow one aircraft

commercial

to fly through the atmosphere and outer space. At

operations

the same time, PD AeroSpace is also developing a

in December

fully reusable ballistic launching vehicle in which all

2023.

Henn-na Hotel Henn-na Hotel is the next-generation hotel which

Guinness World Records in

attains the world’s highest productivity through full

November 2016 as the first

automation and the use of robots while minimizing

robot-staffed hotel. Another

running costs by using renewable energies. The

Henn-na Hotel opened in

initial phase of the hotel’s first complex construction

Maihama, Chiba in March

started in July 2015. In March 2016, a second part

2017 followed by another

of the hotel complex was also built and began its

one in Laguna Ten Bosch in

service. Multilingual robots check guests in and

Aichi prefecture and later on shall expand overseas.

out at the front desk. Guests enter their rooms with facial recognition. The Henn-na Hotel is powered by green energies and maximizes energy conservation. Furthermore it aims to become a hotel that provides guests with an entertaining and enjoyable experience. The hotel was registered in the

A world premiere! Robots are working at the front desk.

Guestrooms made by wooden CLT construction method*

*CLT construction method (cross-laminated timber construction): This method uses thick panels created by laminated individual panels so that the directions of fibers are crossing at right angles. The advantages of this method include great thermal insulation performance and high earthquake resistance.

The most productive crops’ farms in the world Huis Ten Bosch is testing various ideas for the future. One of them is a crops’ farm based on achieving the highest productivity in the world, automation through the use of robots, and stimulation of the five senses for maximal enjoyment. Greens are now harvested and served in Aura, a healthy restaurant in Henn-na Hotel where guests can enjoy their breakfast.

Vegetables served at the restaurant Aura

Vegetables growing in the crops’ farm

H.I.S. Group CSR Report 2017

7

The H.I.S. Group keeps creating and challenging its corporate value in a rapidly changing world

H.I.S. Co., Ltd. Vice Chairman of the board

Akira Hirabayashi

Rapid transformations in the world

Changes in the role of the travel industry

The world is now rapidly changing. We may not see

Our travel business must also follow the advancement

any change when we compare today with yesterday.

going along these rapid changes. The main role of

Yet, once we see the world with a greater perspective,

a travel agency has been to facilitate connection

we are inevitably surprised by the magnitude and the

between people planning a trip to their destinations

speed of change. I remember the scene of a ticket gate

safely, and comfortably guide many people to places

at a railway station where station attendants were

unknown to them. Today however, a new direct

cutting tickets with ticket punchers. I believe it was

connection is being formed between travelers and their

only about 30 years ago. Then, magnetic tickets and

destinations due to the development of the information

passes were invented and eliminated manned ticket

service networks available through the Internet

gates. The tickets were then replaced by non-contact

and mobile devices. Services expected from travel

IC cards called Suica in JR East and PASMO in private

agencies are shifting from their role of connection to a

railways and subways in the Kanto region. Today,

supporting role, letting customers enjoy their time once

passengers are passing through ticket gates using

arrived at their destinations. We will keep progressing

smartphones as well.

and adjusting to the trends and needs of this new era.

It was only a short time ago when I was surprised

What kind of pleasures, encounters, or learning

by the facsimile(FAX) that instantly reproduced a

experiences do travelers seek for at their destinations?

document written at a distance and delivered it

We must create new services, products, and systems

right in front of me. Then, the rapid advancement of

making them more satisfied such as offer various

information and communication technologies (ICT) and

information such as entertaining areas, places

increased flow of information has allowed us to receive

where exquisite dishes are served, and places with

and transmit any information using a smartphone. The

breathtaking sceneries.

use of smartphones is rapidly spreading.

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H.I.S. Group CSR Report 2017

Reinforcement of services at local destinations

Furthering the reinforcement of the hotel business

In order to provide more comfortable and enjoyable

In order to provide improved services, we must focus

time at destinations to customers, the H.I.S. Group

our attention on the hotel business because the

is providing timely information and services at

hotel is at the center of the customer's journey. One

anytime during their journey. For example, we are

of our main tasks is to build and manage facilities

going to provide services especially designed for

which offer comfort and competitive prices.

our customers including the introduction to optional

We are thus strengthening our hotel business. Our

tours and arrangements with local guides.

goal is to build or manage 100 hotels within three to

In addition, we are going to contribute to the

five years. We are enlarging our network around the

prosperity of local economies at destinations by

world using methods such as M&A.

designing attractive travel products that include

The new corporate philosophy of the H.I.S. Group is: “In

experiences proper to their unique culture and

accordance with the laws of universe, we contribute

history as well as inroducing customers to unknown

to the creative development of humanity and world

areas.

peace”. Under this new corporate philosophy and the

In order to do so, we engage in M&A with local

support of our stakeholders, we are going to expand

travel agencies familiar with the area in our business

our business while defining our new role as a travel

plan. We are also going to strengthen our ties

agency. We sincerely appreciate your support and

with the national governments, local governments,

understanding of our challenges.

municipalities, and local tourism organizations to develop specialized travel products available upon arrival exclusive to each country in the world.

H.I.S. Group CSR Report 2017

9

Challenge to improve the

corporate value of H.I.S. To improve our corporate value, the H.I.S. Group is committed to implementing new activities to nurture talents and work with society under the corporate philosophy of the group “In accordance with the laws of universe, we contribute to the creative development of humanity and world peace”

Training people who become leaders of the next generation ■ Acceptance of interns from overseas The H.I.S. Group is actively welcoming interns so that many people can experience the attractiveness, meaning, and value of working in travel agencies as well as companies of the H.I.S. Group. We are offering opportunities for many students and professionals to experience our business operations.

Interview Experiences gained through internship are contributing to the future.

Interns were assigned to department s including the

When I was working as a

headquarter's IT system division, the Corporate Group

student intern, I was assigned

Business Department , as well as the Vietnamese and Thai

to welcome the customer

branches.

upon arrival at a local office

Overseas internships at the HQ are beneficial to interns who

in Vietnam. I performed

then gain working experience and understanding of Japanese

various tasks such as solving

culture. They also promote mutual understanding among people from different nations through communication with Japanese staffs and develop of a global atmosphere in the organization. The opportunity for Japanese interns to work in overseas offices also provides chances for them to understand diverse societies, cultures and to experience the local business environment. These are assets that they cannot gain from traveling for leisure.

Kobe branch

Mai Kusakabe

customers’ troubles while in Vietnam, selling optional tours,

and visiting hotels to monitor facilities. I found it was interesting to directly assist customers during their trip. I learned the importance of working while constantly thinking about the customers’ perspective so that they could comfortably, joyfully, and safely enjoy their stay. The experience gained as an intern became useful after I started working for H.I.S. as an operator to sell travel products in Japan, when I talked with customers to discover their needs. I watched the speedy work of people working at the office in Vietnam and their attitude to try new projects and to create attractive travel products. I learned that I was able to please customers by challenging myself without limitations. These experiences are still useful in my current work.

A scene of training in Vietnam

The Tokyo Symphony Orchestra The H.I.S. Group is actively supporting artistic and cultural activities. One of them is to support for the Tokyo Symphony Orchestra in which Mr Sawada (H.I.S. CEO) is acting as a chairman.

10

H.I.S. Group CSR Report 2017

The H.I.S. Group crafting the future

■ Various activities for students The H.I.S. Group is supporting programs as a client company of the Leadership Development Program (LDP) at Waseda University and the Global Leadership Program (GLP) at Rikkyo University. In these leadership programs, students form small groups consisting of students from different departments and school years work on project assignments given by client companies while practicing their leadership skills in teams. The H.I.S. Group submitted the themes

years.” Through participating in these programs, the H.I.S. Group assisted the training of future business leaders. We also offered opportunities for many students to learn the corporate philosophy of the H.I.S. Group and discover the attractiveness of the travel industry. The H.I.S. Group is also visiting junior high schools, high schools, vocational schools, and colleges around Japan to give lectures and introduce students about the attractiveness of the travel business.

assignments, supported the students’ workgroups and evaluated their presentations. The theme that was assigned this year was “to propose a business model of a store which makes you feel that the world would be more exciting in ten

A scene of GLP at Rikkyo University

A scene of LDP at Waseda University

■ Creating new business from an internal venture-company system The H.I.S. Group established a new original venturecompany system which started in 2015. This system is intended to create new businesses using innovative ideas and expand the business of the H.I.S. Group. This system also provides opportunities for the H.I.S. Group’s employees to pursue great dreams and goals of their own

Interview I want to create a business model that surprises the world.

and facilitate their personal growth. The submission system

The Business Incubation

has no specific requirements. Projects of this program do

Promotion Division is

not have to be related to tourism and are open to many

examining multiple business

themes. Staff can apply for this program using their own

ideas in dep th t o c onv er t

creativity, inspiration and ideas. Proposals are selected

them in ne w businesses.

based on application documents and then proceed to a presentation and interview in front of executives board members. Selected proposals will be turned into businesses under the supervision of those executives. Many ambitious proposals have been submitted already, and some of them are already shifting to a detailed business planning phase. “I felt it was a good chance to realize my lifelong dream.” “I was able to structure my strategy and ideas while writing my proposal.” These are opinions of some employees. As these comments suggest, one of the achievements of this project is that it is providing opportunities for self-development and personal growth.

When I attended the global Business Incubation Division

Yuichi Inaba

peace event “Global Shapers” in Hiroshima last year, I

was encouraged to think about what would be needed to achieve mutual understanding. I was communicating and interacting with participants from overseas. This event triggered in me the desire to create a new project where local people could interact with travelers and share experiences with them. The goal was to create a business under the initiative of local people. We would like to keep launching various types of businesses and eventually create an inno vative business model that will improve the global recognition of the H.I.S. Group as the initiator of the business.

Scene of a presentation

H.I.S. Group CSR Report 2017

11

Activities contributing to world peace ■ Sponsorship for peace events

■ A journey to face History and war

The H.I.S. Group is conducting various activities to

The H.I.S. Group is offering study tours. Seventy years

support the realization of world peace and sustainable

have passed since World War II ended, and the

society as a company that shapes the future. The

majority of the population has no war experience. The

H.I.S. Group was a golden sponsor and supported the

H.I.S. Group is now planning tours to revisit history and

success of the “SHAPE Asia Pacific 2016” held during

reflect about a peaceful future.

four days in March 2016.

One of them is the “Poland-Netherlands Peace Study

The Global Shapers Community, a community

Tour” where customers visit Auschwitz. They visited the

organized by the World Economic Forum and operated

site of the Auschwitz-Birkenau concentration camp. A

by young people under 33 years of age, held this event

meeting with local people is held and participants can

in Hiroshima, a city destroyed by an atomic bomb, 70

discuss about what they have learned.

years ago at the end of the World War II. The theme

The H.I.S. Study Tour also offers a Vietnam Tour to visit

of this event was to build sustainable peace, and 117

TừDũ Hospital, which provides cares and rehabilitation

people from 37 countries participated. Fieldwork and

to children suffering from the after-effects of chemical

panel discussions were held during the event. The

weapons used during the Vietnam War. Participants meet

H.I.S. Group gave a presentation to discuss the value

children part of rehabilitation programs and reflect on war

and role of the travel industry in improving mutual

history. They also visit a non-profit organization (NPO)

understanding and interactions which are foundations

supporting disabled people and learn about the current

of world peace. We engaged in great discussion with

welfare system in Vietnam.

participants.

The H.I.S. Group believes that awareness about history is beneficial to the future and we are committed to continue to create opportunities to increase awareness about history.

Presentation at the panel discussion

Participants from the H.I.S. Group

The entrance gate of the Auschwitz II concentration camp called the Death Gate

Opening a co-working space in Silicon Valley The H.I.S. Group opened the Innovation Center

of innovation so that it can become a reality.

a part of the Innovation Factory (operated by

Professionals in various fields and specialties gather

Altitude, Inc.), which is a co-working space in Palo

here and exchange opinions and information with

Alto, Silicon Valley. Its aim is to help companies

startup businesses. As part of the community of

materialize new innovative businesses for their

startup businesses, we will do our best so that

successful future.The Innovation Factory is a

the Innovation center becomes a base for forward

specific center dedicated to the successful creation

thinking and innovation.

The facade of the Innovation Factory

12

H.I.S. Group CSR Report 2017

Exchange of opinions and gathering of information

The H.I.S. Group crafting the future

Activities of the theme park business ■ Huis Ten Bosch,   the new tourism city

■ Laguna Ten Bosch   spreading amazement

Huis Ten Bosch offers several activities in order to

Laguna Ten Bosch is aiming to become a year-round

become a theme park that all visitors can enjoy.

theme resort which spread amazement to visitors. It is

One of these initiatives is the operation of Cart Taxi

now improving contents in the entire resort. One of its

services. They can carry up to four adults to destinations

activities is the introduction of a the next-generation

inside Huis Ten Bosch. Also, new pavement roads were

roller coaster that runs through a Virtual Reality*

constructed for the Cart Taxis in order to make their

Adventure (VRA) since July 2016.

operations smoother inside the vast park.

In the VRA, passengers wear head-mounted display

Wheelchairs and baby strollers are also available for

(HMD) and ride in a roller coaster while watching

rent. The park also has restrooms and elevators for

images on the HMD that are synchronized with the

wheelchairs.

movement of the coaster. The HMD adds realistic

In addition, the park has diaper changing stations in

visual effects which are unique to VR and cannot be

15 multi-purpose restrooms, as well as in 18 women’s

experienced with conventional roller coasters. This

restrooms in and outside of the park. A recovery room is

system makes riders feel as if they are actually in a

also available in the Entrance Gate Information Center for

dreamlike world of adventure while experiencing the

guests who suddenly feel indisposed in the park. Nurses

speed of the roller coaster. VRA can be switched to

are stationed full-time at the Medical Center.

various contents; thus, the contents will be updated

We increased the number of free resting areas and

regularly.

benches so that guests can take a break at any t i m e i n t h e p a r k . We also installed a new Central Information Desk in Amsterdam City located at the center of the park so that guests can easily find information about locations and visit smoothly.

A completely different world! The VR adventure in a realistic space

*Description of Virtual Reality(VR)

Cart Taxi driving around Huis Ten Bosch

Benches for guests to take a quick rest

VR is the abbreviation of virtual reality. It refers to the technology which works on sensory organs of individuals and artificially creates a virtual environment which practically feels real. Images and sound synthesized by wearable devices and computers project a user’s in a three-dimensional space and create the sense of being present in the space.

The Robot Kingdom The Robot Kingdom opened in Huis Ten Bosch. It

demonstrations

is the largest and the first permanent robot-based

and experiments,

entertainment facility in Japan. “Henn-na Restaurant

even letting guests

Robots” consists of 10 types 30 robots including

touch and use

the robot chefs welcoming guests. Robot no Yakata

the robo t s. The

is the museum displaying cutting edge robots for

R ob o t King dom

visitors to experience. The shop displays and sells

contributes to

popular household robots. The Robot Kingdom also

the advancement

offers a unique robot entertainment world that is only

o f robo t s in the

available here and accumulates knowhow through

service industry.

A robot chef is cooking okonomiyaki (Japanese savoury pancake).

H.I.S. Group CSR Report 2017

13

Cohabiting with

local communities

The number of visitors to Japan is rapidly increasing. The H.I.S. Group is now implementing various business activities such as creating memorable encounters related to Japan and Japanese culture in addition to operating a business that increases employment by promoting tourism, invigorates local communities, and improves local revitalization.

Welcoming visitors to Japan from overseas offices ■ Hosting travel fairs in several countries The visa requirements to visit Japan from Indonesia, the Philippines, and Vietnam were drastically relaxed in recent years. Thus, the demand to visit Japan from Southeast Asia is rapidly increasing in addition to the one from China. The H.I.S. Group’s overseas offices are also working towards increasing visitors to Japan. The H.I.S. Group hosted the “Cool Japan” Travel Fair 2016 in Indonesia specifically promoting tourism to Japan. Japanese municipalities, tourism facilities, and hotels participated to the event. In Taiwan, the H.I.S. Group hosted “Touch the Japan” an exhibition to introduce the attractiveness of modern tourism in Japan and its culture. In 2016, we also hosted “Feel Japan” in Vietnam, a large event to promote tourism in Japan, and put the spotlight on various domestic regions in collaboration with other Japanese companies and municipalities. We also held a booth in the largest travel fair in Thailand, the “Thai International Travel Fair (TITF)”. Also, we frequently appeared in travel events, such as the “Visit Japan FIT Travel Fair” by the Japan National Tourism Organization (JNTO), the “Japan Expo in Thailand in 2016”, and promoted tourism in Japan.

■R  einforced collaboration between companies and municipalities The H.I.S. Group is developing specialized travel pr o duc t s a v ail abl e up on arriv al t o enc our a g e the discovery and attractiveness peculiar to each de s tina tion. W e ar e al s o r einf or cing our tie s with municipalities and tourism organizations to expand and spread inbound tourism demand to many parts of Japan and invigorate local economies. For example, the H.I.S. Group and Kanagawa Prefecture signed a cooperation agreement to increase inbound tourism in March 2016. The prefectural government and H.I.S. cooperate in cultivating and perfecting tourism resources to respond to the needs of foreign visitors to Japan by using H.I.S. Group’s network of 230 offices around the world. H.I.S. sent one Japanese staff and one Vietnamese staff to the prefecture’s administrative training programs to work for the prefecture to promote tourism. In addition, H.I.S. opened the Tohoku Tourist Support Counter, an information desk for foreign visitors in Sendai Airport as a part of the New Tohoku Interaction Expansion Model Project that the Reconstruction Agency was implementing to increase foreign visitors to Tohoku. H.I.S. thereby developed a system to facilitate the journey of overseas travelers. In addition, we have been designing tours and received support from municipalities and regional associations in Hokkaido, Toyama, Chiba, Tottori, and Niigata to invigorate local economies by boosting the number of travelers.

“Cool Japan” Travel Fair 2016 in Indonesia

“Feel Japan” event in Vietnam, 2016

14

H.I.S. Group CSR Report 2017

Support Counter for overseas travelers in Sendai Airport

Cohabiting with local communities

■ Japanese hospitality   extended to overseas travelers The number of foreign independent tours (FIT) has increased in recent y ears, and the H.I.S. Group is implementing various programs for independent tourists. We established a new company with LY.com in China in November 2015 as an inbound business base for the rapidly increasing number of Chinese people visiting Japan. This company distributes information on attractive features about several parts of Japan to Chinese tourists to boost local economies. We also established Interpark Japan, a joint venture with Interpark, an online shopping mall in Korea, in December 2015. It allows us to quickly provide services to Korean customers through this website. In addition, we are operating “hisgo”, the e-commerce website available in 12 languages and in 41 countries around the world. The website, Visit Japan, is delivering the latest information about Japan using our network of 295 offices nationwide. We are also running the application “Touch! Tokyo” in both Thai and English which is highly recommended by our Thai staffs about tourist attractions in Tokyo. Furthermore, an example of companies members of the H.I.S. Group is Japan Holiday Travel, which opened an information counter in Abeno Harukas in Osaka in addition to the conventional information desk at the arrival gates of airports. A no t her inb ound s er v ic e is HAnavi which offers domestic trips’ accommodations to respond to the diversified needs of independent tourists. Website “Visit Japan”

Examples of new services Osaka Wonder Loop

Interview The furthering of relations between Vietnam and Japan The tourism industry in Vietnam is now emerging. The market of Vietnamese travelers to Japan is expanding at a rate of more than 150% a year. Still, it is not easy for non-Vietnamese H.I.S. Vietnam

Shintaro Sudo

companies to launch businesses in Vietnam, and the Vietnamese

people have difficulties accessing information about other foreign countries. Thus, there is a lack of accurate information about Japan in Vietnam. We believe our mission as a Japanese company is to distribute correct information about Japan and to sell attractive travel products to customers. To fulfill our mission, we are editing the travel section of “Kilala”, the only free paper introducing Japan in Vietnamese. Also we hosted “Feel Japan” in Vietnam H.I.S. Japanese exhibition, among other activities. Also, we will use three tools, charter flight to Japan, online services, and service in stores, to further deepen the mutual interaction between Vietnam and Japan in the tourism industry.

TIC providing Japanese hospitality services in more than 18 languages

The H.I.S. Group launched Tourist Information Centers

The Osaka Wonder Loop is

(TIC) at 35 locations in Japan to expand services

buses, tourism buses for foreign

offer services in up to 18 languages including English,

operating double-decker open-top

visitors to enjoy sightseeing in

O s ak a. E a ch bu s v isi t s t ouris t

attractions in Osaka city within 140

minutes. Ten buses are operating each day, and tourists can freely

ride one or another of these buses for 24 hours after the first ride.

Samurai Training in Tokyo

This is a samurai training workshop experience produced

for the increasing number of overseas visitors. TICs Korean, Mandarin Chinese, and Thai provided by nonJapanese staffs. They support overseas customers during their stay in Japan by helping with foreign currency exchange, wiring money overseas, loaning Wi-Fi devices, arranging tours and cultural experiences, luggage storage service, arranging various tickets and, reservations for hotels, as well as selling souvenirs. The H.I.S. Group operates nine out of the 48 Category

by Creative Kenbu Tachibana Ittoryu. Guests change into

III TICs certified by the Japan National Tourism

like men’s wear pants) and learn about samurai lifestyle

(JNTO). We intend

to iaido (art of quick sword-

network of TIC

yukata(Japanese summer kimono) and hakama(skirt-

starting from the greetings,

drawing technique) and sword battle. They receive a

completion certificate with their photos after the training.

Organization to expand the all around Japan from Hokkaido to Okinawa.

Harajuku Tourist Information Center

H.I.S. Group CSR Report 2017

15

CSR activities in overseas offices ■ Expanding the network   of overseas offices

Interview Overseas offices offering opportunities to connect with Japan

The number of overseas offices of the H.I.S. Group has reached 230 offices in 141 cities in 66 countries in 2016. The H.I.S. Group furthers mutual interaction between people around the world and

T h e r ol e o f t r a v el a g e n c i e s i s becoming more important in the inbound travel market in Japan. One of the missions of the H.I.S. Group is to offer safe, comfortable, and attractive travel products to people visiting Japan. The net w ork of overseas offices of the H.I.S. Group Global Business Development Division is key to fulfill this role. The direct Tsuyoshi Tomari connection between 230 overseas offices and the H.I.S. Group in Japan can provide attractive travel products. We are putting efforts in building new overseas offices and increasing staffs in these offices to respond to the increasing demand, as well as to persuade customers to visit Japan as promoted by our offices around the world. We believe that overseas offices are essential in transmitting the information about Japan to locals in order to spread knowledge about Japan and encourage international collaboration. We will keep improving resources in overseas offices.

improves local economies (regional vitalization) by expanding the travel business through these offices. We also believe that the travel business’ mission is to protect the unique and unvaluable nature, historical assets, traditional cultures of local regions and countries, and to promote their attractiveness. We are thus working with local people to protect and discover tourism resources. In Indonesia, the H.I.S. Group is working to preserve the traditional culture of the Island of Bali for future generations. In Hawaii, we are sponsoring events and making donations to contribute to peace between Japan and the Pacific region’s societies through sports and culture. A language school in Vancouver, Canada named Canadian College of English Language (CCEL) joined the H.I.S. Group. CCEL offers new learning opportunities to students from Japan and other countries who want to study abroad to learn English.

Düsseldorf Frankfurt Guangzhou Qingdao Berlin Prague Beijing Dalian Warsaw Moscow Seoul London Munich Vladivostok Bratislava Paris Venice Ulaanbaatar Bukhara Geneva Budapest Vienna Samarkand Istanbul Busan Madrid Rome Budva Cappadocia offices Luang Prabang Khiva Barcelona Japan Florence Chengdu Vientiane Shanghai Casa Blanca Hong Kong Taipei Kathmandu Jejudo Milan Cairo Hanoi Dhaka Macao Dubai Delhi Chiang Mai Zürich Saipan Hainan Yangon Danang Manila Guam Phuket Bangkok Cebu Palau Chennai Ho Chi Minh Addis Ababa Maldives Siem Reap Phnom Penh Nairobi Pattaya Colombo Amsterdam Brussels

Vancouver

Domestically

295

Penang

Si Racha

Langkawi

Kuala Lumpur Singapore

Surabaya

Bali Bandung Jakarta

Los Angeles Honolulu Maui

Kona

Papeete Nouméa Fiji

Brisbane Johannesburg

Gold Coast

Perth

Sydney

Boston

San Francisco

Kota Kinabalu Cairns

Toronto Seattle

Auckland

Las Vegas

San Diego Mexico City

New York Orlando Havana

Cancún San José

Abroad

Lima

66 countries 141 cities 230 offices

Rio de Janeiro São Paulo

Melbourne

Implementation of G.P.S. (Global Petite Trading Services)

16

G.P.S. provides investigation and support services to Japanese

using knowhow and negotiation skills earned through our

companies planning to start to do businesses with companies

experience in the travel business to provide the above

overseas.The H.I.S.'s staff abroad represents about 3,800

services at an affordable cost and offer speedy execution.

people in 230 offices (as of November 2016). They are the

Our local staff (speaking the official language of each country)

ones to perform the aforementioned tasks. The investigation

are working to provide the service. We have received more

mandate includes making lists of companies, retail prices,

than 200 cases from 100 companies since we started this

gathering information on local laws and regulations, and

service in the autumn of 2015. Osaka Prefecture chose to

searching for statistical data. The support service includes

include G.P.S. in its support-menu, a tool to support companies

the gathering of samples, providing photographs, making

in Osaka aiming to launch businesses abroad. Other prefectures

appointments, and accompanying service. We are effectively

are also starting to use G.P.S’ services.

H.I.S. Group CSR Report 2017

Cohabiting with local communities

Cites

Taipei

Hong Kong Shanghai

Main activities in overseas offices in the 2016 fiscal year Activities’ Details

■The Taipei Office established a foundation, the Kenki Social Welfare and Charity Association. The Taipei Office is allocating donations from staff, guides, and business affiliates and some of the sales to the benefit of schools in Taiwan, people with severe disabilities, families in need of public assistance, and disadvantaged children through this foundation. ■We accept over 20 schools a year including elementary school to university from Japan to deepen the understanding of local culture and different customs with local students, so that the students can gain an international perspective. ■The Hong Kong Office participated in a charity event held at the Laguna Plaza. It supported the sales as an “Oxfam rice volunteer” and donated a part of the sales. ■The Shanghai Office hosted a seminar for trainees from Yokohama Minato Sogo High School.

Dalian

■The Dalian Office made a donation for people with severe disabilities, families which need public support, and disadvantaged children in Zhongshan District, Dalian.

Hanoi

■The Hanoi Office sponsored “Quest Career” in Hanoi 2016, an active-learning style career education event intended to build a bridge between local youth and Japanese companies and to deepen mutual understanding between them. The staff teaches what it is like to work for a Japanese company and how interesting it is to local youth in a lecture.

Bangkok

■The Bangkok Office donated IT and electronic devices to the Suan Keo Foundation. ■The Bangkok Office donated tricycles to the Jesada Technik Museum. ■The Bangkok Office made a donation to a temple in Narathiwat Province.

Singapore

■The Singapore Office hosted the football events such as “H.I.S. Cup” and a soccer school of “Borussia Dortmund” of the Bundesliga for children in the “Shoot Football Academy”, the soccer club in which many Japanese children living in Singapore are participating. Friendship is strengthened by playing soccer in these events.

Jakarta Bali

■The Bali Office hosted a seminar for Indonesian students who would like to work in Japan in the future. The staff visited colleges in Indonesia and gave lectures to students, teaching Japanese culture and customs. ■The Bali Office supports the Balinese traditional arts and their development carrying on the “Tirtasari” to show the traditional Legong dance to future generations. ■The Bali Office sponsored the regularly scheduled dance performance three-days-a-week presentation of students in dance classes at Watermark Hotel in Kedonganan in support of carrying on the traditional dances to future generations.

■The Kota Kinabalu branch welcomes overseas training program at Tokyo Tech High School of Science and Technology (in collaboration with students from Malaysia Sarawak University and local high schools, including inspection of the development of energy supply systems in farming villages). ■Supporting Gakushuin University Dizorba Project (a project in which Japanese college students and students from Sabah University collaborate on field Kuala Lumpur work such as volunteer activities and trekking with people living in rural areas). Kota Kinabalu ■Visiting an orphanage in the school trip. Experiences such as beach cleaning volunteers. ■Inviting Malaysian students to Japan and conducting tours including school exchanges. ■Welcoming Osaka Prefecture Senboku High School “Super Science High School Borneo Overseas Training” (Borneo Island Ecosystem, Training of Animal Protection Activities). ■Implementation of a volunteer tour to construct new and clean kitchens in orphanages. ■Sponsored the local Japanese business education institution CJCC, and provided a chance to travel to Japan in the travel promotion event. Siem Reap ■Sponsored “Dream Girls Project” that aims to solve women’s poverty in Cambodia and improve the social status of women. Phnom Penh ■Hosting a sporting event with the Chamber of Commerce to promote the interaction between Japanese companies and local companies. ■Sponsored the Bon Odori (Obon festival dance) Convention organized by the Japanese Society of Cambodia. ■Sponsored a design contest aimed at expanding opportunities for Cambodians. Cairns

Gold Coast Sydney Perth

■Sponsored the “Magic Sakura Campaign” collaborated with the JNTO and ANA, offered tours to visit Japan. ■Presenting exhibits in the Japanese Festival, an event to experience Japanese culture in Melbourne and Perth. ■Donated relief funds to support the recovery from the Kumamoto Earthquake through the Japanese Red Cross Society.

Brisbane

Auckland

■The Auckland Office is registered in the Japanese Corporation Community and provided funds as a membership fee for the development of local communities, such as for the Japanese language school for Japanese children, as well as for nature conservation of New Zealand, such as tree planting projects. ■The Auckland office planed products which can contribute to Maori tourism to encounter indigenous people and donating some of the sales of this tour as a fund to protect the culture of Maori people. ■The Auckland Office donated some of the sales from eco tours and hiking tours to organizations administered by the government as funds for activities to protect the unique biodiversity in New Zealand. ■The Auckland Office sponsored the “Auckland Coming of Age Ceremony” in support of a local college student group.

Honolulu

■The Honolulu Office is sponsoring the “LeaLea 5km Charity Run” hosted by the NPO, Honolulu Ekiden Fund. It contributed to the support for the reconstruction efforts after the Kumamoto earthquake, through a fundraiser event whose slogan was “Ganbarou, Nippon”. ■The Honolulu Office is sponsoring the Fourth Honolulu Ekiden & Music 2016 hosted by the Honolulu Ekiden Foundation and donating funds to six amateur sports organizations through this foundation. ■The Honolulu Office donated scholarship funds to students majoring in tourism at the University of Hawaii in Manoa. ■The Honolulu Office sponsored the 32nd Great Aloha Run and held a booth under the theme of Japan and promoted travel packages to Japan. ■The Honolulu Office sponsored the “Third Honolulu Fashion Week”, an event intended to support the youth in Hawaii and their culture. ■The Honolulu Office sponsored the “Ninth Swing for Wish Golf Tournament” hosted by the Make a Wish Foundation, Hawaii Office. ■The Honolulu Office donated round-trip airline tickets for the preliminary inspection of a summer vacation interaction program. This program is hosted by Variety School of Hawaii, a special school supporting children with learning disabilities, and inviting children from Osaka to Hawaii.

Guam

Orlando

■Sponsoring an autumn festival hosted by the Japanese Association. ■The Guam office sponsored a charity golf tournament hosted by the Guam Leaf & Olive Spa Report to support the Special Olympics Guam. ■Sponsored a charity golf tournament hosted by Guam Premium Outlet to support Guam Girl Scout. ■Sponsored a charity golf tournament hosted by Country of the Classic to support the Rigalu Foundation. ■Sponsored a charity marathon hosted by Guam Leaf & Olive Spa to support the Make a Wish Foundation. ■Made donations to the Calvo Cancer Foundation to support cancer patients. ■Sponsored the Orlando Japan Festival introducing Japanese culture and distributing airline tickets' discount coupons to Japan.

Mexico City

■Participated in the summer festival at the Asociación México Japonesa building for the cultural exchange between Japan and Mexico, sponsoring a booth using VR techonology to introduce tourist attractions in Japan.

San José

■Contributed to the promotion of research and the advancement of entomology in Costa Rica through a tour to find Hercules beetles accompanied with entomologists. ■Contributed to the Organization for Tropical Studies (OTS), an international research facility through La Selva Tropical Rainforest tour. ■Contributed to the Tropical Science Center (TSC) that operates and manages nature exploration and bird observation tours at the Monteverde Cloud Forest Biological Reserve. ■Contributed to the development of sustainable tourism by organizing nature and bird exploration tours in San Gerardo de Dota to support the protection and conservation of threatened species inhabiting the private preservation zones. ■Staff volunteering for the water rescue teams of the Costa Rica Red Cross Society (e.g. coaching and conducting lifesaving and giving lectures).

São Paulo

■Implemented programs to help businesses to welcome young interns from Japan, accepting group trainees from the Association of Nippon-Brazil Interaction.

Paris Amsterdam

Rome

Barcelona

■Made donations to organizations providing food to the homeless. ■Hosted work experience training for the Japanese School of Amsterdam. ■Sponsored charity events at Japanese schools. ■Sponsored a charity event to support victims of the Great East Japan Earthquake. ■Sponsored the FAR EAST FILM FESTIVAL. ■Hosted the World Heritage Event “Washoku” (Japanese cuisine), an economic exchange program with Sakata city, Yamagata Prefecture. ■Sponsored charity events of Japanese schools. ■Sponsoring the 25th Japanese Language Speech Contest.

Munich

■Making donations to bazaars hosted by the Munich Japanese Association. ■Hosting work experience training for the Japanese School of Munich.

Istambul

■Donating school supplies to schools through the H.I.S. Colombo Office to support victims of devastating floods in Sri Lanka. ■Donating winter clothes and school supplies to Ağrı. ■Donating winter clothes to elementary schools in Sivas.

Casa Blanca

■Establishment of a fund for trees planting along train tracks between the Casa Blanca airport and the city. ■Co-sponsoring Japanese Language speech contests with Qatar Airways.

Johannesburg ■Sponsoring events of the Japanese Association in South Africa.

H.I.S. Group CSR Report 2017

17

Cohabiting with local communities

Support for the restoration from major natural disasters Not defeated by the Kumamoto Earthquake The H.I.S. Group implemented various activities to support the restoration efforts after the Kumamoto Earthquake that occurred in April 2016. We started the “Ganbarou Kyushu” Campaign in the end of April. We opened Kyushu's Specialty

Interview Long-stay packages during the restoration attracted great praises

stores in Tokyo, Nagoya, Osaka, and Fukuoka, as well as

The H.I.S Head O f fice and

promoted and sold travel packages to visit Kyushu. The H.I.S.

customer call centers

Group also created tours including vegetable harvesting

contacted customers

experience to support farmers who suffered great damages.

to confirm their safety

The H.I.S. Group also conducted campaigns to invite people

immediately after the onset

to Kyushu at Huis Ten Bosch as well. The H.I.S. Group also

of the earthquake. We

promoted the sales of travel packages using the Kyushu Restoration Discount program that the national government offered. This campaign received great praises from many people in and outside of Kyushu. The H.I.S. Group offered a package which only cost 50,000 yen to stay in many parts of Japan, Taipei, Bali, and Guam up to 30 days (40,000 yen for Taipei and 60,000 for Guam), offered to victims of the earthquake. We also co-sponsored “Sakuranobaba Johsaien”, an annual event at the Kumamoto Castle. We invited Miss Hawaii and Legon dancers from Bali. We also sponsored Lea Lea 5K Charity Run 2016 in Hawaii, where we raised a relief fund to support restoration efforts after the Kumamoto Earthquake. We promoted the sales of products made in Kyushu at restaurants and stores in Huis Ten Bosch. In addition, the price of the annual passport for new customers was drastically discounted specifically for the residents of Kyushu.

Kyushu Head Office Director

Hideki Miyamoto

opened offices to take care of customers of other travel agencies and arrange airline

tickets three days after the earthquake. In addition, we organized restoration effort buses between Hakata and Kumamoto to transport supplies and people who wanted to confirm the safety of their family members. We then announced a 30-day tour so that earthquake victims could stay and rest in safe areas while staying away from locations still shaken by aftershocks with the support of tourism agencies of other countries and hotels of the H.I.S. Group. About 450 people made reservations for this tour. We received many letters thanking us before and after the tour. This was achieved by the H.I.S. Group's team effort.

Comments from customers ●It was a relief because until then I was sleeping in a car. ●The affordable price and length of availability were truly amazing. ●I am really glad to take part in a long tour at such a low cost. ●Despite my home being lost, it gives me hope and I am grateful. ●I am thankful that they could secure a place for me to live for one month. ●I am grateful that I could stay elsewhere than a rescue shelter.

Sakuranobaba Johsaien

Advertisement of the Kumamoto Nichinichi Shimbun on May 12th, 2016

Initiatives of the Kyushu Sanko Group

●I am surprised by the low price for the airline ticket and hotel and pleased by it.

Operating free shuttle buses in Mashiki town

The Kyushu Sanko Group engaged in emergency

during the restoration efforts in front of the entrance of

The Kyushu Sanko Group operated small free shuttle

at the Aso Kumamoto Airport that suffered damages.

responses and supported the disaster-hit areas.

the airport to temporarily replace the regular restaurants

buses in Mashiki town, an area that suffered extreme

It also offered a pass named CKP for students in junior

stopped operating. The company offered free buses for

students could freely ride buses during the period of

for the restoration as well as operating buses in new

have expired, because they had to go to school to

victims. The company also built and operated “Ganbaru

the earthquake. The company also donated funds to

damage in the ear thquake where regul ar buses employees of local governments and volunteers working

high schools and high schools. With this pass, the summer break in July and August even after their passes

routes including to the temporary housing areas of the

make up for the days when schools were closed after

Ken”, a temporary restaurant opened for three months

Mashiki town and Kumamoto Castle.

H.I.S. Group CSR Report 2017

19

H.I.S. JAPAN Discussion

Challenger's spirit and a sense of mission Aiming at becoming Japan's top travel agency To further expand our travel business—our core operations—the H.I.S. Group has reorganized the domestic travel division (which was conventionally divided into district headquarters) and established H.I.S. JAPAN, a quasi-corporation handling outbound travel from Japan and domestic travel. Eyeing future business expansion, the new quasi-company’s Top 3 leaders discuss about their aspirations for H.I.S. JAPAN.

Taking on challenges without fearing failure

moving forward even when we failed—seems to have

Nakamori: Although encouraging competition by vertically

identify their needs then to challenge ourselves to respond

been waning a little recently. Oda: What do our customers want? We need to clearly

segmenting headquarters in each district has the benefit of improving services, in truth it is also inefficient in terms of business expansion. Now onward, we will firmly connect our business activities horizontally through our core business axis of overseas travel from Japan and domestic travel within Japan, expanding horizontally positive aspects, but also collaterally creating problematics which we will have to address swiftly to make improvements. I am sure that we can achieve this kind of coordination, and I think that we have created an extremely strong operational system. Yamanobe: Before the reorganization, former district headquarters did implement many effective measures, but it was difficult to achieve a horizontal spill over effect. I think that this new system has tremendous merits. Oda: There is another reason why I think the new system presents an opportunity—as the company has grown larger, I think that we have perhaps been losing the spirit of challenge that we began with. Nakamori: Certainly, the initial driving force that we have had since H.I.S.’s foundation—being challengers together,

20

H.I.S. Group CSR Report 2017

President, H.I.S. JAPAN Tatsuya

Nakamori

and act. We cannot fear mistakes. Without going out of our

is harsh due to Japan’s declining population. However,

comfort zone, we cannot create innovation, and if it must fail,

demand is something that is generated. If we change

we can always take a step back.

ourselves first and create new products, we will have

I believe we can use this as an opportunity to move

ample opportunities. For example, the population may be

forward. If we prepare ourselves and take that first step

aging and the birthrate declining, but I believe there will definitely be demand generated if we create products and services that make it easy for elderly people to travel. Yamanobe: It is said that young people are not traveling overseas, but I think that is because the appeal of overseas travel is not being fully presented. In the past, traveling overseas was appealing in itself, but that is not the case today. We need to go further as including what people can do at their travel destinations. By being creative in this area, I want us to create another huge trend for overseas travel. Certainly, the Internet has facilitated travel preparation, but the Internet cannot convey the emotional experience of travel. Being able to do this is the travel agencies’ strength. Nakamori: I think it is time for us to rethink the H.I.S. J A P A N’ s r e a s on o f e x i s t enc e . A t t he t ime o f our foundation, overseas travel was extremely expensive. By making travel inexpensive, we have enabled young people to also travel overseas. Subsequently, Japan saw the rise of businessmen who were active overseas, and we could

Vice-President, H.I.S. JAPAN Jun

Yamanobe

assist such people in changing their view of life. Now, however, overseas travel is far less expensive. Under these

forward with determination, we are sure to be able to

circumstances, what is our reason for existence? I believe

achieve excellent performance.

this is something that our entire staff needs to consider

Yamanobe: When we first joined H.I.S., it was still a small

together. The other day I visited Google Headquarters in

company, but now we have numerous employees and

the United States. There were many young people there

the workload has become compartmentalized, so despite

with a strong sense of mission to organize information

having a lot of motivation it might be difficult to accomplish

from around the world and make it accessible from

certain changes or projects. But I want our employees to

anywhere in the world. At H.I.S. JAPAN, too, I want there

come to work telling themselves “This is the work that

to be more staff who have a sense of mission as travel

I can accomplish” and feel joy and motivation. It is our

professionals and who take action, empowered by this

responsibility to create a working environment that enables

sense of mission. Let’s all work together as one.

such attitude. After all, if our staff is not satisfied working at H.I.S., they cannot provide customer satisfaction either.

Generating new demand for travel Oda: In the field of domestic travel, I think we need to generate new demand rather than focusing on the existing demand. If we create a new domestic travel movement, our domestic travel business will grow. We are challengers in the domestic travel field—we want to give all that we have. Yamanobe: The global travel market is going online at an accelerating pace, but there are undoubtedly still services that customers desire from stores. We will win if we can provide products and services unique to our stores, services that are unavailable on the Internet, without fail. We are trying various attempts, including collaborations with cafes, and I believe that stores have a role to play in generating new demand. Oda: Generally it is said that the Japanese travel market

Vice-President, H.I.S. JAPAN Masayuki

Oda

H.I.S. Group CSR Report 2017

21

The Power of Travel The H.I.S. Group proposes a new style of travel: interacting with people around the world, increasing awareness about regional and social issues from a global perspective, and contributing to the development of local communities by thinking of solutions to these issues together with locals.

Accessible Tourism ■ Measures Taken in Response to the Disability Discrimination Act The Disability Discrimination Act was enacted in April 2016. In response to its enactment, H.I.S. has included two symbols; an Ear and a Slope Symbol highlighting services provided at each store which are listed on the H.I.S. website. The Ear Symbol indicates that the store has staff who can communicate with hearing-impaired customers in writing or sign language. The Slope Symbol indicates that there are no stairs or differences in surface levels between the nearest train station/bus stop and the store, enabling easy access for customers with wheelchairs or baby strollers.

In addition, through a joint project with Narita Airport, H.I.S. conducted the “Narita Airport Educational Tour of Barrier-free Facilities” for the hearing-impaired in February 2016. Tour participants experienced the entire flow of procedures, from arriving to the airport, boarding at the check-in counter, went through safety and departure

Ear Symbol for the hearing-impaired

inspection checkpoints until departure gates. Participants were also allowed to restricted areas that usually cannot be accessed without a passport. It was an unprecedented tour. Following its completion, participants completed a questionnaire regarding aspects of procedures that they found were inconvenient and wrote suggestions for improvements. Questionnaire results were summarized and submitted to airport administrators. The tour was a revolutionary experiment in creating an airport environment that everyone can use with peace o f mind and relieving hearingimpaired people of the concerns regarding Sharing inspirational experiences through Shuwa (Sign Language) Travel participants overseas travel.

■ “Tibino no wa” and “Shuwa Travel” The Universal Tourism Desk plans original products such as “Tabinowa” Accessible Tourism led by a conductor trained to assist people affected by physical disabilities which restrict their ability to travel. In order to facilitate and spread the joy of travel to physicalled disabled participants, our products are designed to give them access to destinations that would usually be hard to access on their own.

In 2016, a new member with nursing qualifications and working experience as a nurse joined our team. Her presence encourages participant that would otherwise feel limited or that would give up on travel due to their disability to regain confidence in their ability to travel. In addition, the Accessible Tourism Desk also promotes explanations in sign language and plans travel iteneraries adapted to the needs of participants with hearing disabilities. A member staff who also has a hearing impairment and that is fluent in sign language can accompany participants as a full-time tour operator and can guide the tour. Furthermore, after repeating the tour experience several times and upon customers suggestions, we created a member organization called “Shuwa Tabi Nakama” for former participants to connect and meet with others sharing similar experiences.

22

H.I.S. Group CSR Report 2017

Also the “Shuwa Tabi College” was created to provide training opportunities for participants to rehearse travel scenarios such as presenting passport to officers, assistance with smartphone or wifi as well as table manners.

Interview I would like to help customers to achieve their dreams I joined the ranks of the “Universal Tourism Desk” in February 2016. While caring for patients as a nurse, I often heard patients say: “There are places I’d like to travel, but it’s impossible for Universal Tourism Desk Yuka Shiomi me under these conditions”. Since I have not traveled a lot yet, I am studying about the travel industry every day, and I would like to help customers to realize their dreams by using my experience at my previous job.

The Power of Travel

Interview The Barrier-free Shikoku Pilgrimage Tour(4–5 times) Born out of our desire for people with impaired physical

Enabling anyone to experience the greatness of travel

mobility to be able to engage in Shikoku island's pilgrimage

All H.I.S. Group staff members

H.I.S. Shikoku Pilgrimage Tour is one of our most popular

strive to be able to offer travel

tours from the Tabinowa category.

plans for customers with

During a period of one-and-a-half to two years (broken

disabilities that are customized to

into 4–5 trips), participants visited 88 temples in Shikoku,

each type and degree of disability.

completing their pilgrimage with a visit to the sacred Mt. Koya. Pilgrimage Tours have been conducted a total of four times since the establishment of the Accessible Tour Desk. On days when the weather is fine, tour participants could also experience street pilgrimages, enabling them to enjoy contact with the local community and experience local hospitality. Participants also visited must-see Shikoku sightseeing spots, so please enjoy these attractions that only the Shikoku Pilgrimage Tour can offer!

Corporate training workshops are Universal Tourism Desk

Takayuki Usui

held for not only staff assigned to the Universal Tourism Desk, but

also to general store staffs, planning staffs responsible for creating products, and even Customer Service Department staffs. With the addition of attending staffs with nursing qualifications and practical experience, H.I.S. began selling Tour packages accompanied by qualified nurses. We would be pleased if just one more person were able to think, “I’d like to travel if that service is available”, so that even people with disabilities could experience the joy and wonders of travel. We will continue to build on our efforts toward creating a world where anyone always has the opportunity to travel freely.

Inclusive Tour Examples

Message from a Pilgrimage Tour participant I was astonished by the way in which our attending staff was able to assist with wheelchairs on slopes and stairs. I couldn’t believe that there were people w ho coul d do such ac t o f kindness . D ue to an unexpected illness, my father lost movement on the left side of his body and the ability to speak with ease, suffering from higher brain dysfunction, but everyone on the tour gave him hope and joy. He received lots of positive energy. On the flight home, as I watched my father laboriously writing down the names of all his new “friends”—tour participants and staff members—I sensed the immensity and powerful energy he had received. No words can express how intensely moving this experience was or the depth of my appreciation to everyone. I was freshly reminded how the memories of a trip can “be tremendous support for someone”. I am truly grateful to H.I.S. for giving me and my father the hope that you can indeed travel, even with a disability.

■Domestic Travel <One-Day Tours> ●The National Museum of Western Art and Japan Grand Prix International Orchid Festival 2017 ●Tour of Tokyo’s Famous Plum Tree Blossom Viewing Sites and EdoTokyo Museum <Bus Tours> ●Two-day tour including visits to The National Museum of Western Art, Japan Grand Prix International Orchid Festival 2017, and a tour around central Tokyo including a helicopter ride!! ●Two-day tour including accommodation at the Fuji Lake Hotel, famous for its Accessible design, and the Tokinosumika Illuminations! <Shinkansen (Bullet Train) Tours> ● E a t a t t h e p o p ul a r R e s t a u r a n t Yamazaki! Chase the cherry blossoms! Follow the cherry bl ossoms t o A omori Pre f ec ture <Three-day t our packages with qualified nurses> ●Complete coverage of the ArashiyamaSagano and Ohara-M t. Hiei areas escorted by a tour guide! Three-day tour of Kyoto’s autumnal leaves. <Airplane Tours> ●Reassuring support provided for participants using wheelchairs!! Three-day tour fully enjoying two of Hokkaido’s biggest winter events, the Sapporo Sno w Fes tiv al and Asahikawa Winter Festival. ●Guarant eed lif t bus and barrier free rooms! Okinawa four-day tour encountering early-blooming cherry blossoms and humpback whales.

<Tour packages escorted by qualified nurses> ●New Year purification prayers and delicious eel rice bowl lunch <OneDay Bus Tour> ●Support provided for bathing time! R el axing three-day tour of Oita prefecture enjoying hot springs and gourmet food at the Suginoi Hotel in Beppu. ■Overseas Travel ●First-time Sydney Relaxing five-day trip to Sydney with sightseeing included. Uses convenient Japan Airlines direct flights! ●First-time Rome Relaxing six-day trip to Rome with free time included. Uses convenient Alitalia direct flights! ●First-time Hawaii: take it easy and enjoy a relaxing Hawaiian holiday. Everlasting Hawaiian summer six-day tour ●Eight-day tour of Peru to see the Nazca Lines and visit Machu Picchu, the “City in the Sky.” <Cruises> ●Nine-day cruise aboard the Diamond Princess watching the Awaodori dance in Tokushima City, the Kumano Fireworks, and the Seto Inland Sea. ●Ten-day springtime Mediterranean cruise aboard the MSC Splendida! Lift vehicles provided for all itinerary activities! <Honolulu Marathon> ●Barrier-free Honolulu Marathon and 10 km race day walk

Inquiries H.I.S. Universal Tourism Desk TEL: +81-3-5360-4761 FAX: +81-3-5360-4733 URL: http://www.his-barrierfree.com/

H.I.S. Group CSR Report 2017

23

Traveling to learn and interact ■ Study Tours: Traveling to Learn The H.I.S. Group conducts a wide range of study tours, from tours promoting volunteer activities and international exchange to tours for learning about social issues and developing problem-solving skills. Our tours promote peace and educate participants on mutual understanding, environmental consciousness /nature immersion education tours, and tours supporting NPO/NGO activities. While students are the main participants in these study tours, in recent years, participation has expanded to include a wide range of age groups, from children to seniors, and H.I.S. study tours are now also being used by companies for employee trips and by schools for educational trips. In recent years, there has been an increase in cases where companies included H.I.S. study tours as part of their human resources training. This is because many companies are now finding it necessary to formulate new growth strategies and create appealing new businesses and thus urgently need to nurture innovative human resources. M oreo v er, s tudy t ours no t onl y comprise l earning programs, but also provide opportunities for participants to come together and interact in various situations before, du r in g , a n d a f t e r t h e ir

Interview Contributing to Human Resources Training in Corporations The se da y s, tra v el is al so required to provide added value. The tremendous power of travel is that it can do so. I have been involved in pl anning and marke ting study tours for a long time, Study tour desk but even now, I repeatedly Kenichi Kobayashi make new discoveries regarding the potential that travel possesses. For example, many companies are currently pondering the question of “How can we best achieve human development?” Study tours can play a large role in solving such issues. Moreover, H.I.S. provides opportunities for participants to deepen exchange before, during, and after their study tours. From these exchanges are born new travel plans, new activities, and businesses. In the future, I would like to continue planning attractive high-added-value travel plans and provide them to customers.

study tour. This exchange deepens participant s’

Study Tour Examples

experiences and is used as an opportunity for those with study tour experience to cooperate in taking on new challenges. Study Tour in Bhutan

Pledge to the UNWTO* Global Code of Ethics for Tourism This code of ethics prescribes measures that those involved in the development of the tourism industry—national governments, tourism organizations, local communities, travelers, etc.—should voluntarily undertake actions in order to realize responsible sustainable tourism, including the eradication of human exploitation (especially children) in the tourism field, preservation of the natural environment, provision of reliable information to tourists, guarantee that workers’ basic rights are respected, to contribute to enhancing the value of cultural properties, and to carry out activities that are beneficial to the host country and local community. The H.I.S. Group became a signatory to the Global Code of Ethics for Tourism in September 2014 and has been educating people both within and outside the company about the code. * World Tourism Organization

24

H.I.S. Group CSR Report 2017

■Overseas Travel ●Community-based tourism development seven-day tour in eight provinces of the Kingdom of Bhutan ●Six-day tour for building elementary schools in Cambodia ●Five/six-day tour of Angkor Wat and exchange with a Cambodian orphanage ●Support and exchanges for Laos schools, seven-day tour ● T aking homel ess chil dren t o excursions. Six-day tour of Cebu Island, the Philippines ●Eight-day tour in Bolivia encountering the mysteries of the Salar de Uyuni and smiling faces of children ●Four-day childcare volunteer tour in Ho Chi Minh, Vietnam ●Five/six-day tour comprising visits to Tu Du Hospital and exchanges at welfare facilities ● S e v e n - d a y t o ur c o mp r i s in g volunteer activities at Mother Teresa facilities in India ●Four-day tour comprising volunteer Japanese language exchange with nursery school children in Cambodia ●Eight-day tour building houses with families in Cambodia ●Six-day international medical volunteer tour in Myanmar ●Eight-day tour learning about India comprising homestays and visits to slums ●Follow Anne Frank, visit Auschwitz in the Netherlands-Poland for 6 days

●Fiv e- day t our o f Nanjing and Shanghai “Let’s discuss with the Chinese people” ●Six-day tour of Nepal visiting world heritage sites and exploring restoration sites ●Six-day tour “Meet the Real Maldives” ●Six-day tour living in Nepal’s great nature experience through the Motherhouse handiwork ●Observe JICA activities! Six-day tour of Sri Lanka visiting Japanese people active on the frontlines of international cooperation ●Seven-day tour of Geneva, Switzerland, visiting the United Nations ●Eight-day tour of education and welfare training in Denmark ● S i x - d a y t o ur o f s u s t a in a b l e “education, food, and energy” in Lolland and Copenhagen ●Seven-day tour where participants reflect about their Future in Silicon Valley ● S e v e n - d a y t o ur o f T h ail an d presenting Phuket travel promo tion proposal s t o the Ministry of Tourism of Thailand ●Seven-day tour as an assistant nursery school teacher in Vancouver, Canada ●Seven-day tour as a welfare facility intern in Vancouver, Canada ●Nine-day travel industry short-term internship in Ho Chi Minh, Vietnam ●Nine-day travel industry internship in Bangkok, Thailand ■Domestic Travel ●Two-day tour learning about today’s Fukushima and thinking about our future

Enquiries H.I.S. Study Tour Desk TEL: +81-3-6836-2551 FAX: +81-3-5360-4733 URL: http://eco.his-j.com/volunteer/

The Power of Travel

Study Tours Aims of study tours

S t ud y t our s ar e t our s t ha t pr o v ide cu s t omer s w i t h v ariou s opportunities to learn about social issues by visiting areas through travel with the aim of creating a sustainable society for the future.

Volunteer activities

International exchange

Learning about social issues and cultivating problemsolving capabilities

Field surveys/ Fieldwork

Support for disasteraffected areas

Alleviating poverty

Educational/Medical support

Environmental conservation/ Protection

Environmental education/Experiential nature education

Promoting Awareness of world peace

International cooperation activities

Support for NPO/NGO activities and education

■ Study Tour Example Six-day tour, building elementary schools in Cambodia Under the Pol Pot regime (1976–1979)

Message from NPO HERO Representative Hiroshi Hashimoto

Participate with the intention of fully enjoying yourself

I became involved in volunteer

approximatlely one-third of Cambodia’s

activities in Cambodia af ter

population—more than 2 million people, mainly

visiting the country when I was a

intellectuals such as educators—were slaughtered.

university student. Having lost their schools during the war, children

Virtually all schools were also destroyed, and the

kept pressing me to teach them.

education system collapsed. In Cambodia today, the number of children is increasing more and more, but there are many children who cannot attend school even though they want to due to poverty or because there are simply no schools in their area. In order to alleviate this

a new world opens before your eyes, you may experience a turning point in your life as I did. Rather than thinking about touchy concepts such as “contributing internationally” or program with the intention of fully enjoying yourself. As you

tour participants build

will find out when you come here, ultimately it is this kind of

public schools that

attitude that is best for Cambodia’s children.

children can attend

Let me leave you with these words of wisdom: “Twenty years from now you will be more disappointed by the things you

free-of-charge. This

didn’t do than by the ones you did do. So throw off the bow-

tour helps children to opportunities.

promise it will be the experience of a lifetime. Moreover, as

“contributing to society”, I would like you to participate in this

problem even a little,

broaden their future

Eighteen years later, I am hoping to work together with you in building HERO’s 15th school. I

lines, sail away from the safe harbor. Catch the trade winds in Commemorative photo with children in front of a completed school

■ Study Tour Example Six-day tour of Thailand presenting Phuket travel promotion proposals to the Ministry of Tourism and Sports of Thailand in English This problem-solving business experience tour was realized

your sails. Explore. Dream. Discover”. (Mark Twain)

Message from tour participant Ms. Hono

Participation due to personal interest in planning and marketing Phuket is universally recommended for its beaches, but I thought that

through the cooperation of the Ministry of Tourism and

in further advertising this aspect we

Sports of Thailand and advertising agencies. Participants

would be unable to differentiate

prepared promotion proposals addressing real tourism issues

Phuke t from any o ther resor t.

and presented them to the ministry’s officers in English.

During our short experiential tour, I

Outstanding proposals were selected, and the chosen teams also made presentations back in Japan at the Tokyo Office to determine the winning team. The tour also included predeparture workshops, enabling participants to take lectures on the role of government,

that are not well-known. Since these facilities have received virtually no promotion, I decided that I wanted to make them known to many people and contribute to Phuket. Making the presentation to the Ministry of Tourism and Sports of Thailand was a good challenge, and I

tourist organizations and

will never forget how deeply moved I was by the experience.

promotion planning methods

Looking back on this internship, while reflecting on what I could have done better, I also feel a sense of pride in what

before participating in the

I was able to achieve. More than anything, I enjoyed myself

tour. Outstanding proposal

and with this experience lingering in my heart I intent to move

may have been used in future plans.

discovered entertainment facilities

Commemorative photo holding internship completion certificates

forwards.

H.I.S. Group CSR Report 2017

25

Dedication to

customers

The pursuit of customer satisfaction is always a major objective of the H.I.S. Group. Accordingly, we are dedicated to realize customer satisfaction providing world-class services and business operations that consider safety first, as well as the creation of systems for collecting customers’ opinions and swiftly linking them into operational improvements.

Pursuing Customer Satisfaction ■ Pursuing Travel Safety and Reliability In the travel business, safety is a theme that takes priority in all areas. The H.I.S. Group implements various measures to ensure absolute travel safety. Especially regarding the selection of charter bus companies, we have always set rigorous standards, but taking heed from the lessons of the ski bus accident that occurred in Karuizawa in January 2016, we are now operating our bus tour services under even stricter contract selection criteria.

First of all, in concluding contracts with bus companies, the bus company must either have “Safety Bus” accreditation under the Charter Bus Operators Safety Evaluation and Certification System administered by the Japan Bus Association, or be a member of the Japan Bus Association. In the case that the bus company does not fulfill either of these conditions, an H.I.S. Group staff with operations manager or operations manager assistant qualifications will conduct a rigorous inspection based on a strict checklist, and only after the bus company passes this inspection is the contract signed.

Further reducing the number of complaints The number of complaints we receive each year from customers is decreasing year-by-year. However, the reality is that the number has not reached zero, and so we need to continue

Customer Service Department

to strive towards reducing

Shugo Nagatani

this number to zero. The

Customer Services Department is not simply a receptacle for complaints. Of course, it is essential that any complaints we received are addressed promptly. However, to ensure that we never receive the same fundamental complaint again,

■ Customer Service Department

we believe that it is also important for us to share

The H.I.S. Group has established a “Customer Service Department” with the aim of enhancing customer satisfaction and further improving our services and products. The “Customer Service Department” receives an average of more than 4,000 questionnaire postcards and emails from customers per month, promptly sharing these comments with each relevant actor. These comments are used in our efforts to reduce complaints and improve domestic and international services. The number of complaints sent to the “Customer Service Department” is decreasing yearby-year, with 957 complaints received in FY2016, a net decrease of 58 complaints over the previous fiscal year. The staff evaluations provided in questionnaires completed by customers after their return home average a rating of more than 4 on a scale of 1 to 5, with scores rising year-on-year.

organizational structure, so that we ourselves can

Going forward, we will further strengthen coordination with our stores and overseas branches, focusing attention on actual conditions causing dissatisfaction that have not been brought to the attention of the Customer Service Department yet, in our pursuit of services and product quality that will truly satisfy customers.

26

Interview

H.I.S. Group CSR Report 2017

feedback regarding various decisions, systems, change to become an organization capable of creating even more enjoyable travel.

●Trends in the number of complaints received by the “Customer Service Department” (Number of complaints)

2,500

2,000

1,900 1,638

1,500

1,389 1,071

1,000 500

1,573

2010

1,015

957

2011 2012 2013 2014 2015 2016 (Fiscal Year)

Dedication to customers

■Q  uality Control and Market Research Department The main duties o f the Qualit y Control and M arke t Research Department are management of product quality and the promotion of safety measures to ensure that customers can embark on their journey with peace of mind. In 2016, as a result of sending security cameras to overseas offices and promoting their installation in buses used for package tours, cameras were installed in 601 buses, an increase of 113.8% over the previous fiscal year. Furthermore, the H.I.S. Group also conducts “Discussion with Customers” with the aim of improving products’ quality. For these discussions, we bring together customers with travel experience and have them freely express their impressions and opinions. In 2016, the discussion also included people who had traveled with companies other than the H.I.S. Group and had them express their frank opinions about us.

In addition, to further promote travel safety and peace of mind, we newly compiled a collection of case examples of problems that can occur while traveling. This collection does not contain general cautionary information but rather contains case examples of problems and mistakes that customers experienced overseas, making it even more effective as cautionary information.

Interview Introducing actual case as examples, providing cautionary advice We newy compiled a pamphlet on travel safety to be placed on the counters of our stores nationwide for customers to freely take home. This pamphlet is characterized by the fact that all the information it provides Quality Control and Market Research i s b a s e d on a c t ual e v en t s . Department When cautionary advice stops Izumi Seino at general information, it may not be useful in actual situations, while in fact there are many examples in which similar problems have occurred. Through this pamphlet, we would like our customers to accept that these problems may occurred and are also relevant to them, enabling the document to play a role in ensuring greater travel safety. We will continue to utilize all our knowledge in order to provide all our customers with problem-free, enjoyable travel.

Discussion with Customers

Pamphlet for customers

Case examples of improvements made based on customers’ comments ●Customer’s comment

In Hawaii, despite waiting at the first stop to ride

the Diamond Head Line trolley, when it arrived

the trolley was at full capacity and I had to stand

and wait. Since the next trolley arrived 45 minutes

later, missing the first trolley impacted the entire

day’s schedule. I would like you to consider either arranging for one more trolley at the same time or

●Customer’s comment

On my graduation trip, I went to Los Angeles and Disneyland in Anaheim. At the hotel in Los Angeles,

I was asked to show a credit card in addition to my passport, and because I didn’t have a credit card, I was told that I could not check in. It was troublesome.

▶Our response

W e added a page t o all our t our pamphl e t s in

to increase the number of trolley services.

cartoon style showing customers the preparations

During the crowded morning hours, we added

deal with any problems.

▶Our response

two more trolley services, easing the crowding.

●Customer’s comment

While staying at the Centra Ashlee Hotel Patong in

Phuket, there was a Hard Rock Café located near the hotel and the loud noise from the café was annoying.

▶Our response

When making the final booking confirmation with the

hotel we made sure to request rooms on an upper floor where the noise would not be disturbing.

they need to make before departure and how to

●Customer’s comment

In Singapore, because my children cannot eat spicy

crab, I asked for a substitute dish but I was told they

could not change the dish. I would like buffet-style

meals to be provided instead.

▶Our response

We arranged for children to be served a chicken dish and took extra care with travel plans for families.

H.I.S. Group CSR Report 2017

27

Dedication to customers

New ways to travel ■ Offering diversity in travel As it is being said that the number of young people trav eling o v erseas is declining, the H.I.S. Group is developing new styles for traveling in order to convey the enjoyment of travel to potential customers. One such proposal is our H.I.S. Hawaii specialty stores that opened in May 2016 in Umeda, Osaka and Shinjuku, Tokyo. These stores are also recognized as satellite offices for the Hawaii Visitors and Convention Bureau and are positioned as bases for the dissemination of information far exceeding the category of travel. We also hold the “Love Hawaii Collection” in locations throughout Japan. This event aims to further widen the Hawaii lovers’ community, including hula halau (dance schools) and Hawaiian shops throughout Japan. In May 2016, we opened Japan’s first Okinawa specialty stores specializing in travel to Okinawa in Shinjuku, Tokyo and Umeda, Osaka. These new conceptual spaces provide additional value beyond being mere places to shop, enabling customers to experience Okinawa as they had never before.

Measures utilizing IT As a new tool for conveying the appeal of travel, we are proactively utilizing IT. One example is our “AR*1 Video Pamphlet,” which activates a video when the viewer holds up their smartphone. Video images filmed by a drone or other device begin to move as if they are about to pop out of the pamphlet. Also, at our Shinjuku 3-chome Hawaii specialty store, not only is there a VR(Virtual Reality) corner where visitors can freely try out a simulated Hawaii travel experience, but also at the counter there is a new VR service enabling customers considering a trip to Hawaii to virtually view hotel guest rooms and facilities. This enables customers to select hotel rooms using images that are very close to the actual rooms. In addition, we have also begun installing AI (Aerial Imaging)*2 displays in our stores whose images appear to be floating in air. As a use for AI, we have also begun developing our own “chatbot”*3 service, which cus t omers can enjoy conversing.

Hawaii Specialty Store “H.I.S. Hawaii”

Okinawa Specialty Store

*1 A R = A u g m e n t e d R e a l i t y . Technology that displays actual scenes superimposed with various digital information *2 AI=Aerial Imaging. A system whereby images float in the air * 3 Chatbot: A service provided using interfaces such as M e s s e n g e r a n d C h a t o n Simul ate travel experiences with mainly mobile devices. Gathers V R te c h n o l o g y a t H . I . S . S h i nj u ku information through conversation specialty Hawaii store

Guam Reef and Olive Spa Resort Initiatives

Making customers’ stays more comfortable As the number of individual travelers increases in the

Tommy Bahama products. Slippers for use in guest

Guam travel market, the Guam Reef and Olive Spa

rooms have also been changed from the usual pile

Resort is implementing various measures aimed at

material to a tatami-mat material at the suggestion of

making guests’ stays at the hotel even more comfortable

staff. Furthermore, in response to the needs of the rapidly

and enjoyable. General guest rooms provide Australian

increasing number of non-Japanese overnight guests, the

brand KUDOS bath amenities, while suite rooms provide

hotel has also opened a gym on the lobby floor.

Gym now open!

28

H.I.S. Group CSR Report 2017

KUDOS bath amenities

Comfortable tatami-mat slippers

Pursuit of

employees’ satisfaction The H.I.S. Group not only pursues customer satisfaction (CS), but also proactively seeks to raise employee satisfaction (known as “ES”). By ensuring that our members are happy and enthusiastic and working with a sense of purpose, we are aiming to create a positive cycle that raises CS even further.

The working environment and development of human resources ■ Improving the work environment

One of our major missions as a corporation is to create a

dealt with 28 consultation cases, of which 7 (25.0%) were

working environment where it is easy to work and provide

related to human rights issues.

growth opportunities for each individual employee. As

The H.I.S. Group also strives to ensure the safety of staff

part of these efforts, we endeavor ourselves to raise the

as well as customers while visiting our stores or travelling.

number of days of paid leave that workers take. Through

R esponses in emergenc y situations, such as major

reforms to our long-term holiday system in FY2016, the

earthquakes, are especially important. In preparation for a

average number of days of paid leave taken by workers

situation in which people are unable to travel home, each

increased to 8.45 days, an increase over the average of

of our stores has been supplied with a “Going home support

8.27 days for the previous year. Initiatives such as enabling

set” containing emergency food and water, flashlights,

workers to take time off in half-day units led to this result.

simple blankets, and other equipment, and these sets are

The company as a whole is also attempting to reduce the

checked and replaced on a regular basis. When the sets

number of overtime hours, and we have begun introducing

were replaced in 2016, we reduced the burden of making

a flexi-time system in some departments.

replacements in the future by using items that have a

Our external reporting system, Sawayaka-Hot Line, was

longer shelf-life than those used previously.

established as part of efforts to construct an internal control system ensuring proper work practices and functions a s a n e a r l y - w a r n in g system for ethical compliance violations.

●Trends in paid leaves taken (days) Average number of leaves per employee (days) 8.5 8.27

7.5 6.5 5.5

6.37

6.74

8.45

(%) 50 40

7.25

42.1

45.5

42.1

36.4

30

25.0

20

4.5

In FY2016, the Hot Line

●Percentage of cases reported regarding human rights handled by the Sawayaka-Hot Line

10 2012

2013

2014

2015

2016 (Year)

0

2012

2013

2014

2016 (Year)

2015

■ Promoting the employment of workers with disabilities

From the standpoint of actively employing workers with

Ordinarily, employment for such workers tends to be unstable,

disabilities, the H.I.S. Group has established the Gotemba Support

but by strengthening coordination with local disabled people’s

Center and Kumagaya Give Away Package Care Center. We are

support centers and other facilities, we have received appropriate

also strengthening the hiring of workers with disabilities at local

advice, enabling the realization of stable employment for workers

headquarters. Currently, employment of workers with disabilities

with intellectual disabilities. In the future, we will continue to

is at the statutory employment rate of 1.91% (as of the end of

deepen coordination with support centers and endeavor to

October 2016), and we intend to continue to expand hiring in

further stabilize and expand employment of workers with

this area.

disabilities as well as contribute to the local community.

A t t h e G o t e mb a S up p o r t

Number of full-time employees (people) Percentage of employees with disabilities (%)

Center, we receive work

6100

on consignment from

5800

external sources, expanding

5500

our business activities.

5200

Moreover, at the Kumagaya

4900

Give A way Center, we are

4600

expanding hiring of workers

4300

with intellectual disabilities.

Gotemba Support Center

4000

1.66

1.85

1.51

1.96

5,234 4,788

1.91

5,671

4,928

4,491

2012

2013

2014

2015

2016 (Year)

H.I.S. Group CSR Report 2017

29

■ Human Resources' Training

■ Childcare Support

One of the basic policies of the H.I.S. Group is to provide all

Since 63% of H.I.S. staff are female, it is essential that we enhance

staff members with opportunities for self-improvement and

our system for supporting working mothers. Under the “Mama

growth. As part of these efforts, we are continuing to implement

Papa Choice” system, it is possible for parents to extend childcare

the two training systems that we introduced in 2014. The first

leave for an extra year in addition to the usual one year (available

of these is “Assistant Tour Leader Training”, whereby trainees

to workers employed continuously from one year or more).

take part in a tour to learn how to assist tour guides as well

We have also extended the period of our short-term work

as gain an understanding of customers’ needs by experiencing

system from April 30th of the year the employee’s child enters

our company’s tour products. The second training system is

elementary school to March 31st of the year the employee’s

“Overseas Operation Training”. Under this system, trainees are

child is in their third year of elementary school. This is longer that

provided with opportunities for creating new career paths by

the short-term work period generally provided. Furthermore, the

experiencing customer interaction methods, local reservations

number of male staff taking childcare leave is increasing, and we

and arrangement procedures at one of our overseas branches.

will continue to further this trend going forward.

In addition, to cultivate human resources, we continue to

With the increase in the number of staff choosing our “Mama

appoint outstanding staff, regardless of the country where

Papa Choice” system, ensuring a workplace where it is easy

they are hired. Our global evaluation system and our system

for staff to work for short periods has become an issue. As a

allowing new recruits to freely decide the month in which

solution, we are considering developing new working- styles, in

they join the company is part of this policy. Regarding

various forms such as telecommuting from home.

multinational employment, in 2016 we hired 69 foreign nationals—a significant increase over the number of foreign nationals hired in the previous year (55). Staff nationalities are also diversifying, with new recruits in 2016 representing 14 nationalities. We have furthermore introduced a performance-based stock

Interview Strengthening Measures to Reduce Long Working Hours It is our du t y t o pr o v ide a

option system (E-ship) and established a new training course

w orking environment that

for new executive candidates (H.I.S. Change & Create College).

enables all staff to work with

Though these endeavors,

peace of mind and for their

the H.I.S. Group is

personal growth. Shortening

proactivel y training

overtime hours continues to

human resources who will be leaders of the next generation.

Human Resources Department Company Entrance Ceremony April 2016

Taisei Hyuga

be an issue, and we have ne wl y se t up an O v er time Countermeasures Committee

to strengthen efforts in this area. At some of our stores, we are pursuing unprecedented, drastic measures such as shortening opening hours in order to secure time for paperwork. As we monitor the results of these initiatives, we are also implementing various other measures. We have also introduced a flexi-time system is some departments. Moving forward, we will continue to implement measures to enable all of our New Generation Executive Candidate Training “Leadership Journey”

staff to fully demonstrate their abilities.

Massage Room As part of our staff welfare program, we have set up a massage room where three certified visually impaired massage therapists currently provide massage services. Enabling staff to easily undergo massages ranging from short massages of 20 minutes’ duration to full-body massages in their work breaks, this service has been extremely well-received. The massage room is producing results by providing not only staff satisfaction, but also a workplace environment for visually impaired workers.

30

H.I.S. Group CSR Report 2017

Our full-time massage therapists provide relief from fatigue.

Pursuit of employee satisfaction

Activities by the Workplace Improvement Division

Aiming to achieve high motivation, high productivity, and high product quality services the Workplace Improvement Department implements initiatives in order to realize an increase H.I.S. staffs satisfaction at work.

Gathering the true voices of as many staff as possible

【VOICE】

The “Three Line Proposal”—which was introduced to enable all staff to make new proposals or proposals for improvements at any time, as well as proposals regarding operations, including compliance—was renamed “VOICE” in May 2016. This system guarantees that staff receive responses to their questions from the relevant departments, while at the same time ensuring that any necessary operational improvements are made. Browser and search functions have been added, improving the system to make it even easier to use. “VOICE” has been implemented at our offices and stores nationwide, and due to the creation of an environment facilitating the voicing of opinions, we have seen an increase of 110% in improvement proposals over the previous fiscal year, with staff raising their voices and submitting new ideas.

【Comments/Consultation Box】

As the result of strong lobbying to encourage staff to use the “Comments/Consultation Box” we saw an increase in the usage rate of 180% over the previous fiscal year. Going forward, we will continue to value and respect the honest voices of our staff, and provide sincere response from a different standpoint to that of the Human Resources Department. ●Number of opinions/consultations

【Staff Meetings】

We will continue to conduct staff meetings where general managers and group leaders from the headquarters and workers on the front lines of operations can exchange opinions and deepen their mutual understanding. These meetings provide an effective forum to resolve issues.

【Dream Project】

The “Dream Project” implemented since 2013, is a system whereby supporting staffs with valuable experience and expertise are dispatched in stores at their request to provide support during business activities in busy periods. This system enables the reduction of staffs’ overtime and encourages the taking of paid leave. Dispatched staff have the role of not only carrying out daily operations but also conveying the true voices of workers on the front line of operations back to headquarters, leading to

improvement in store operations.

【Employee Satisfaction Survey】

On the “Employee Awareness Survey” that we administer to all employees every year, the job satisfaction score for 2016 was 50.23%—a decrease compared to the previous years. Taking this reality seriously, we are determined to uncover issues and implement concrete actions plans in order to regain the pride and job satisfaction among our staff. ●Trends in Employee Satisfaction Surveys Response rate (%) 65

Previous year

Comparison with previous year

60

80

35

229%

55

Managers

8

14

57%

50

Total

88

49

180%

36th Fiscal Year

Number of opinions/ consultations

General staff

Job satisfaction

60.01

58.65

56.82

52.19

52.00

51.40

50.23

Average score*

47.82 2013

2014

2015

2016 (Year)

*Average score for all "Employee Satisfaction Survey"

Visibility for Active Employees 【Family Participation Day】

Every year, we conduct events as an opportunity for

【Corporate Newsletter】

The content of our corporate newsletter has been revised

families who support the H.I.S. Group members to

to including more familiar topics and interviews with staff

experience Haneda airport training, and deepen their

members. The revised newsletter is centered on articles

understanding of their relative’s workplace. This year

that can easily relate to employees’ career visions, making

we started the event at Kansai Sales headquarters as

it easier for them to picture their future. In future editions, we will be introducing a new “DiverCity” section, as well as 淳 さん

1年で最も忙しいこの時期。全国各地で奮闘している皆さんへ、 東西の営業本部長から熱いエールを送っていただきました! お二人の仕事に対する想いはもちろん、プライベートまでも明らかに!?

さん

さん

間 際 の 予 約 を 取 り 込 む 強 さ がH I S の

真骨頂。必ず達成するという強い気持ち

を持ち、スピードを意識して実行するこ

と が 大 切 で す。健 康 管 理 に 留 意 し て、メ

夏の ピー

今期最

クを 勝ち

抜き 、

高益へ!

取締役

西日本地区統括

取締役

東日本地区統括

先 垂 範し、 スタッフのやる気 を引 き上 げ

 

今期最高益へ

1

Part

山野辺 淳

のピークが2回あります。夏のピークは

10

織田 正幸

旅行は高額な買いものです。どんなにオ

織田

覚えていること

で!! P14 は    

リハリをつけた毎日を過ごしていきま

何かを 乗り越えた瞬間で

私です!

しょう。

海外送客数 No.1になったこと

(26期)

その時の企画は

  イ ギ リ ス のEU 離 脱 の 影 響 で 円 高 傾 向 が 進 み、風 向 き は 変 わ っ て き ま し た。

おっしゃっていますが、

るマネジメントを実践してください。

「バリ島をNo.1にした」 と

関するQ&A ライベートに 社外秘 !お二人のプ だあります! 質問はまだま

丁場。新人の皆さんにとって一人前にな

ップへ!

G W 明 け か ら 始 ま っ て9 月 ま で 続 く 長

この夏を越えて、次のステ 俺たち、私たちの夏!

ンライン化が進んでも、店舗は最後まで

2

な く な り ま せ ん。We b と 店 舗、ハ イ ブ

Par t

Q. 4

月 の 3 カ 月 間 は、会 社

社長がよく

1

Par t

JTBに勝ち

  皆 さ ん、お 仕 事 お 疲 れ 様 で す。 日々の頑張りに改めてお礼を申し上げ

 実践できる上司

ま す。8 月 か ら

していきたいですね!

山野辺  この夏を、みんなで最高の夏に

 信賞必罰が

バリ島で年間 No.1になったこと。

るための大きな山です。何とか食らいつ

Q. 3

理想の 上司像は?

●情に流されることなく

い て い っ て ほ し い で す ね。2 年 目、3 年

●部下に熱意を  吹き込むことが

目の皆さんも、後輩を導きながら成果を

 ない上司

 できる上司

上げることに果敢に挑戦してください。

楽しんでいる人、 厳しさの中に 優しさのある人

支えるミドルリーダーの皆さんは自ら率

 えこひいきが 誰よりも自分が

えてくれると信じています。また、 現場を

●厳しく、 優しく。  バランスがとれており、

world stage.

自 分 に 必 ず 出 会 うこと がで き ま す から

仕事に何を 求めている?

ね。皆さんが自らの限界に挑戦し、 乗り越

会社の皆さん・ 会社の成長

織 田   夏を越えれば、 一まわり成長した

スタッフの皆さんの

達成感

リ ッ ド の 強 み を 発 揮 し て い く の がH I

Q. 2

だくことを最優先に考え、誠心誠意対応

ことは?

自分自身・

す る 気 持 ち を 忘 れ な い で ほ し い で す ね。

大切にしている

3 覚悟と決断

て、「ど う し た ら お 客 様 に 喜 ん で も ら え

Q. 1

仕事をする上で

2 スピードと変化

るか」をまず考えるのが大切です。

自分と

どうすればお客 様に喜んで いただけるかを考え動くこと が 重要です。売 上げ 利 益は 後からついてきます。

山 野 辺   H I S に は、夏 と 冬、ビ ジ ネ ス

楽しむ、 楽しませる

3 変化

S流です。

織田さんに

織田  そうですね。お客様に喜んでいた

山野辺さん

「ど う し た ら 数 字 が 作 れ る か」で は な く

2 どんな仕事も

H.I.S.の強みと団結力で夏を乗り切り、

特集

正 幸さん

の 年 間 利 益 の7 〜8 割 を た た き 出 す 大



お客様に 喜んで もらうこと

変 重 要 な 時 期 で す。こ こ を 乗 り 越 え、今

お客様のことを考えること は基本ですが、自分がどう したいか、どれだけ想いを のせられるか、が毎日続け ていくカギだと思っている ので。

特集

role on the

Family Participation Day event in the Kansai District



Focus! 1

期に最高益を記録するためには、みなさ

野辺

想い、 こだわり

ん一人ひとりの協力が必要です。



1

のは接客のクオリティを昨年以上に上

01

A u g u s t 2 0 16

げ る こ と で す。忙 し い 時 期 こ そ、来 店 く

VOL.

ス タ イ ル ]

ださるお客様に対して差別化したサー

play an active

H.I.S. St yle

イ・ エ ス [ エ イ チ・ ア

ビスを提供する絶好の機会だからです。

members who

山野辺  この夏、皆さんにお願いしたい

many dynamic

 

well. We will continue the event regularly in the future.

パー クを ォー ター 大阪城ウ 増益へ! 、増収 成功 させ

3 August H.I.S. Style

H.I.S. Style August 2

The revamped corporate newsletter.

H.I.S. Group CSR Report 2017

31

Coexistence with nature Considering the impact of businesses on the environment, the H.I.S. Group implements various “Eco Tours” to cultivate awareness and passion for the environment and aims for the establishment of a sustainable society. At the same time, we strive to preserve the environment in all its aspects during our business activities and aim to coexist with nature.

Travel meets environmental issues ■ Offices’ emission of CO2

The H.I.S. Group calculated the amount of CO2 emitted from our business activities for the first time this fiscal year. We will continue to manage the levels of CO 2 emitted from offices of each business segment and make efforts to reduce them from the next fiscal year as well. Business Segment

Emitted Amount of CO2 (1,000 t - CO2)

Note

Travel Business

・C ounting onl y the amount o f 13 emissions pertaining to offices ・Estimated values are included

Huis Ten Bosch Group

30

Hotel Business

16 ・Estimated values are included

Transportation Business

54

Kyushu Sanko Group Total

36 150

■ Environmentally conscious “Eco Tours” In order to remove the negative impacts associated with tourism, including issues such as increased wastes and raw sewage due to the influx of tourists, the increase in CO2 emissions accompanying the use of transportation systems and global warming, as well as issues including the exclusion of benefits to local economies due the consumption of souvenirs, food, and drinks that not being produced locally, we promote the trend of “ethical tourism” in an effort to make the tourism business a sustainable one. The principle of “ethical consumption” started in England as a campaign to solve and improve environmental and social issues through purchasing products or services produced ethically. In order to apply this principle in the tourism fields, we visited New Zealand, a front-runner in ethical consumption, and we began efforts including planning tours to learn about local initiatives.

■ Reduction of the CO greenhouse gas

2 H.I.S. plans “Eco Tours” to increase customers'

awareness of the gravity of environmental issues and the necessity to contribute to preservation efforts.Since October 2012, although we have been attempting to keep our greenhouse gas emissions to a minimum level, to compensate for the environmental footprint that cannot be reduced, we started a “carbon emission counter-balancing” system (carbon tax). This system proposes customers to calculate their environmental footprint (the amount of CO2 ) generated by their participation in a tour into a monetary amount to be donated for nature conservation efforts. The amount of CO2 emissions is specified in every “Eco Tour”, and overall compiled that about 375 kg of CO2 was emitted during a tour per unit (540 Yen). Furthermore, depending on the customer's will, the entire amount calculated to counter-balance the emissions can be charged. The money raised from this initiative is invested in the development of biomass and biogas in Itacoatiara, Brazil and used for the creation o f l ocal cl ean energ y and local jobs.

Development of biogas in Itacoatiara, Brazil

Yakushima Island Tour “Yakushima Island” has been a registered World Heritage site since 1993 and is famous for yakusugi (cedar trees), including the “Jomon Sugi,” a cedar said to be 7,200 years old. On Yakushima Island, abundant and beautiful nature remains untouched. An area of 107.47 ㎢, about 21% of the area of the island, is registered as a World Heritage site. With its forests of gigantic trees and the Jomon Sugi hike, Yakushima Island has been a place of worship in the mountain for the people who have been living coexistent with the forests since ages. We would like you to enjoy the natural heritage on Yakushima Island and feel the greatness, excellence, and sometimes harshness of nature in Japan. Trained trekking guides will show you the way.

32

H.I.S. Group CSR Report 2017

We received a letter of appreciation from Yakushima Town!

As a result of sending so many customers to the Yakushima Island with our tours, the H.I.S. Group was highly rated by Yakushima Town, which sent us a letter of appreciation. We will continue to provide attractive travel plans that continue to convey the charm of Yakushima Island.

Coexistence with nature

■ Subsidiary companies' environmental efforts Each subsidiary company also contributes to strengthening global environmental preservation.

Orion Tour issues “Yakushima currency” coupons worth 1,000 yen to tour participants. The coupons are available for spending at 17 local shops on the island. In addition, we receive 20 yen per coupon as a commission fee from business suppliers who participate in the coupons, and we donate the total amount to the Yakushima Environmental and Cultural Foundation.

Guam R ee f & Oliv e Spa R esor t introduced a s y st em that effectively operates air conditioners and reduces electricity consumption. Additionally, we host a charity golf tournament and are cooperating in collecting funds to support phy sicall y disabl ed athl etes from Guam participating in the Paralympics Games. This event marked its 10th anniversary. The Kyushu Sanko Group promotes eco-friendly driving including efforts to limit the use of air conditioners in summer by attaching film on the buses' glass window for emission reduction. Moreover, we participate in volunteer activities of Fureai Beautification in Kumamoto City. We clean up parks neighboring the Kumamoto Kotsu Center (bimonthly), neighborhood areas of the bus center once a month, and along the national highway once a year. Laguna Ten Bosch is listed member of the Gamagori 530 campaign promotion council preventing garbage scattering. We participate in cleaning campaigns in spring and autumn, periodically cleaning roads around the office throughout the year, and conducting awareness activities with contracting business operators. Website of Yakushima Currency

Interview Travel in harmony with local communities and the planet Eco T ours feature walks in

pris t ine na t ur e and cul t ur al

e x changes with peopl e who v alue nature, there is a l o t t o

discover and learn. In order to

Eco Tour Tour desk

Mitsuhiro Maruyama

enhance learning and cultural exchange, tours for individual

participation are also available.

We hope that participants will enjoy deep cultural

exchanges with several participants and a local guide.

We are especially attentive when creating travel products

since we believe the tours should give consideration to local

communities and the environment visited. From December

2016, our concept of “Trustworthy and Reliable Travel,” we

started a new form of travel operations, “ethical tourism.”

Our aim is to provide opportunities to proactively think

about the world and the environment while our customers enjoy their travel on their own. We continue to make Eco Tour plans that can continue to support local communities.

Next Generation Energy Park Huis Ten Bosch Huis Ten Bosch implements various operations as a “Next Generation Energy Park” certified by the national government. One of them is the “Closed System of Local Consumption” in which the energy supply and consumption cycles are completed within the limits of the park. We have set a huge solar-powered electricity generator, and regarding the power generation by natural gas, we have adopted a co-generation system, making efficient use of the heat generated to the warming and cooling system. Moreover, we purify sewage water to be reused for gardening water and toilet water. We have also constructed a mega-solar power plant system and started the operation in the former parking site that we also own in Sasebo City. On a site of 27,000 ㎡, we installed 8,400 solar panels. The electricity generating capacity is as much as 2.1 megawatts. In 2015, the “HTB Energy Co., Ltd.” established by investments from Huis T en Bosh, Smar t Energ y, and o ther par tners, expanded business intended for the development, maintenance and operation of new electricity sources, such as renewable energy commencing with geothermal power in Kyushu.On a site of 27,000 ㎡, we installed 8,400 solar panels. The electricity generating capacity is as much as 2.1 megawatts. In 2015, the “HTB Energy Co., Ltd.” established by investments from Huis Ten Bosh, Smart Energy, and other partners, expanded business intended for the development, maintenance and operation of new electricity sources, such as renewable energy commencing with geothermal power in Kyushu. Moreover, a self-sustaining hydrogen energy supply system which uses renewable energy and hydrogen was adopted for the “Henn-na Hotel.”

HTB Energy supports geothermal electricity generation

Solar panels that supply electricity (bottom left corner)

Eco Tour examples ■Overseas Tours ●6-day Kilimanjaro view and safari game including a cultural exchanges with Maasai people in Kenya ●5-day Kanchanaburi Eco Tour  Explore Hidden stunning view points in Thailand! ●5-day Nature school in Palau  Tour limited to single participants [Shared travel] ●5-day Giant caves’ adventure  W o r l d H e r i t a g e s i t e i n M u l u National Park ●4-day Pingxi Sky Lantern Festival in Taipei, Taiwan  Releasing sky lanterns! ●8-day Great travel in Costa Rica  Paradise of Central America ●6-day Marvelous view! Trek the W orl d Herit age sit e Kil auea in Hawaii Island ●7-day Hike of the stunning Canadian Rockies ●5-day Mt. Kinabalu top climbing challenge ●5-day Trek o f M ount Batur and sightseeing at the Rice Terraces World Heritage site in Bali ●8-day Highlight trek of the stunning South Island of New Zealand ●11-day Mt. Kilimanjaro top climbing challenge

●8-day Neuschwanstein Castle and Tyrol flower hike ●6-day Eco-friendl y and organic lifestyle experience in New Zealand! ●8-day Stay to enjoy an ecofriendly and organic BIO HOTEL in Germany/Austria ■Domestic Tours ●3-day Trek of Yakushima Island with Jomon Sugi ( cedar )  and Shirataniunsuikyo (waterfall) visit ●4-day Drive accross of Yakushima Miyanouradake (mountain), Jomon Sugi (cedar) Shirataniunsuikyo (waterfall) visit ●3-day Great experience in Yakushima  Tour limited to single participants [Shared travel] ●6-day trip to learn about the Nature in Ogasawara World Heritage site ●6-day Great experience in Ogasawara  Tour limited to single participants [Shared travel] ●4 - da y M t. Rishiri climbing and impressive trek of Rebun Island ●4-day Trip learning about the preservation of the coral environment and island culture of Ishigaki Island ●2-day Mt. Fuji climbing challenge

Inquiry H.I.S. Eco Tour Desk TEL 0570 (05) 2300 81-3(5360)4810 FAX 81-3-5360-4733 URL http://eco.his-j.com/eco/

H.I.S. Group CSR Report 2017

33

Management

CSR Promotion Policy and Structure CSR Promotion Policy

The H.I.S. Group carries out its operation by including

CSR Promotion Structure

Chairman (President) CSR Committee

(Administrator, Executive Officer, General Manager)

social responsibility into the core of its business management based on the Group Corporate Philosophy. In 2012, we began integrating CSR activities throughout the company and have been publishing our CSR report from 2013 in order to deepen communication with our

CSR Promotion Committee

CSR Office

(Consist of leader of each section)

CSR Staffs (About 100 members* from each section and companies) * Intended to increase

stakeholders. Additionally, as a member of JATA* we promote social contribution activities held by JATA. Regarding CSR activities, H.I.S. Group separates CRS implementation into Creative CSR and Basic CSR. The Basic CSR means activities that incorporate social responsibilities in the operation process such as customer safety and security, as well as their health, employees' motivation, respect for human rights, and compliance including fair transactions. On the other hand, Creative CSR are activities where employees can learn from customers and community, encourage them, and create greater social value through collaboration with various stakeholders, that is social innovation. This includes tourism development for the promotion of communities, their development, the survival of traditional culture, and all activities that contribute to cultural exchanges and international peace, conservation of the environment, and the spreading of Eco Tours and study tours. * Japan Association of Travel Agents ・Social change ・Innovation ・Solutions to Social Issues

Corporate Philosophy

・H.I.S Policy ・Corporate Philosophy ・H.I.S. DNA ・H.I.S. Charter of Corporate Principles

Creative CSR Innovative CSR

Basic CSR Core CSR

・Service Standards ・Internal Controls and Governance ・Compliance ・CS ES

CSR Promotion Structure Readiness

At H.I.S. Group, we have built a highly mobile and transparent corporate management structure based on the H.I.S. Charter of Corporate Principles to use as a decision-making system. Also, we established the CSR Committee and appointed our president as chairman in 2012. Under the CSR committee, we have set the CSR Promotion Committee whose representative members are from human resources departments, general administration departments, CS/ES management division including members of each regional sales department and overseas offices. Since the fiscal year 2015, we have been holding the CSR Promotion Committee activities once a month and addressed a priority agenda established according to the ISO26000 guidelines, implemented relevant sections regarding short and mid-term goal setting, and activities using PDCA methods. Al so, 300 CSR staf f s depl oyed in each domestic and overseas office helped promoting our CSR activities and have newly started the CSR training for new employees. In the fiscal year 2017, we will try to increase CSR staff participants to 500 members according to the expansion of the group, and we will develop an awareness campaign for subsidiary companies, overseas branches and domestic branches. We will continue to hold the CSR Promotion Committee activities monthly and increase promotion staff. We aim to lift the corporate brand by the further expansion of CSR activities through strengthening public relation activities in and outside the group and establish a solid promotion structure.

P CSR Committee Report/ Improvement Process

A

Value distribution to the shareholders

34

Stakeholders

Amount (Million Yen)

Shareholders

1,361

Employee

37,288

Creditors (financial institutions)

Total amount including salary, wage, bonus and retirement allowances

337

Administrative body (national and municipal government)

4,103

Company (internal reserve)

△1,161

H.I.S. Group CSR Report 2017

Dividend

D C

Contents

Establishment of High Priority Agenda Short-term and mid-term goals for all departments

Donation Distribution

Policy Promotion Employee Trainings Increased Awareness

Follow-up on Progress by CSR Promotion Committee Publication of CSR Report Receiving Feedback from Third Parties

Categories

Amount (million Yen)

International exchange and cooperation

73

Interests expenses

Culture and arts

40

Total taxes including corporate income tax, inhabitant tax and enterprise tax

Relief-Measures for disaster struck areas

20

Education and social education

6

Increase in surplus

Others

7

Total

148

Corporate Governance Corporate Governance Structure

2016 and established an information management system

The H.I.S. Group developed an approach to the travel

“My Number”.

corresponding to the Social Security and Tax Number System

business that promotes w orl d peace and mutual

In line with the introduction of corporate governance code

responsibility, we strive to be a reliable corporation for

our own corporate governance guideline and submitted

the corporate governance structure. It was transformed

Exchange in July 2016.

un d e r s t a n din g . In o r d e r t o a c c o mp l i s h t hi s s o c i al

our shareholders and include CSR promotion activities to

to include a structure-setting for the Board of Directors

and Audit and Supervisory Committee in January 2016.

While aiming for a continuous growth and positive mid and

long-term corporate value, we are committed to further

by the Tokyo Stock Exchange in June 2015, we formulated the “Corporate Governance Report” to the Tokyo Stock

Se curing the R eliabilit y o f the Financial Report

strengthening our corporate governance.

“Securing the reliability of financial reporting” and

of 13 directors and decides the management policy and

are important for internal control. We have established

In the current structure, the Board of Directors consists important business operations. Three selected members

“Securing the effectiveness and efficiency of operations”

a mechanism for the visualization of important operation

are audit and supervisory directors at the shareholders’

processes related to the financial report and appropriate

Committee, and these directors audit and direct the

reporting by the cooperation of an internal control team

The Audit Office implements internal audits under the

and by the Audit Office, who oversees and evaluates the

meeting composed of the Audit and Supervisory operation of directors and Board of Directors.

president and tries to secure appropriate and sound operations of the whole group. Furthermore, by submitting

cross-checks and evaluations to avoid inappropriate

who promotes the internal control structure’s consolidation

operation status. We also compile the consolidation and operation status as “Internal Control Report.”

reports to the Supervisory Committee, the Audit Office

Responding to the revision of the Companies Act

Committee.

actively engage in the internal control of the subsidiary

awareness by diffusing the H.I.S. policy, H.I.S. DNA, Corporate

company’s member in charge in order to promote the

supports the internal audits reported to the Supervisory

T o w ards the empl o y ees, w e insure compliance and

Code of Conduct, and the Action Guidelines through an

internal information website. At the same time, to facilitate suggestions or consultation, we have created an internal

consultation desk called the “Opinion and Consultation Box”

operated by the Workplace Improvement Department and

external report desk “Sawayaka-Hotline” to secure a healthy working environment. Additionally, regarding protection of

personal information, we renewed the “Privacy mark” in June

w hich demands t he c on t r ol o f t he w hol e g r oup , w e

companies and strengthen cooperation with the each establishment of a uniform internal control structure. In the accounting department, in addition to the establishment

of a professional team in the headquarters that supports accounting work for subsidiary companies, we have

established management control companies in the USA, Malaysia, China, Holland, and UAE to establish a core

accounting structure for each area, developing and training

human resources, hedging risks, and conducting monitoring.

Corporate Governance Structure Chart Shareholder Meeting Appointment and Removal

Decision of Bill for Appointment, Removal and Non-Reappointment of Accounting Auditor

Board of Directors (13 Directors)

Personnel/ Nominating Committee,

Audit and Direction of Directors

Investment Committee

Directors who are members of Audit and Supervisory Committee (3) Audit and Direction of Operation

Instruction and Report

Instruction and Report

President

Instructions and Report

Executive Officer and General Manager Business Operations’ Department

Removal and Appointment of Temporary Accounting Auditor

Audit and Supervisory Committee

Directors who are not members of Audit and Supervisory Committee (10)

Compensation Committee

Appointment and Removal

Accounting Audit

Accounting Auditor

Audit Office

Internal Audit

Report

Cooperation

Instruction and Report

(Internal Audit Office)

Report

Appoint and Removal

Cooperation

Sawayaka- Hot Line

Workplace Improvement Department

(External Report Desk)

(Opinion and Consultation BOX) (Internal Consultation Desk)

H.I.S. Group CSR Report 2017

35

Special discussion

H.I.S. Co. Ltd. Senior Advisor

Kazumasa Namekata

Chairperson Commons Asset Management, Inc.

Ken Shibusawa

Unless we do not consciously seek for peace, it cannot be achieved. This is how travel can be useful. Mr. Ken Shibusawa said: “Peace is like air.” He discusses the value and continuity of peace, as well as the sustainability of companies.

Thinking long-term teaches us the value of peace

generation can be the Global Shapers of tomorrow. I think

Namekata: The H.I.S. Group participated to SHAPE

it was wonderful that the event was held in Hiroshima. At

Asia Pacific 2016 in Hiroshima in March 2016 and

first, the trigger that made me deeply start to think about

witnessed how the people of the world should develop

peace was the 9/11 terrorist attacks in 2001. At the

mutual understanding and build trust relationships.

time, I was in Seattle for a business trip, so I experienced

You participated to the event as an MC. Could you tell

the incident in the U.S. in real-time. At the time I had

Shibusawa: Firstly, companies have a role in discussing w orl d p eace and mak e pr op o sal s on ho w the ne x t

us again about how companies should get involved in

two thoughts. One of them is that peace is like air. It is

peacebuilding?

essential to exist but we realize its importance for the first

Peace and violence as defined by H.I.S. Group

Peace

Passive peace

Direct violence

The state in which direct violence doesn't exist

Wars/conflicts that use physical violence

Positive peace

Structural violence

The state in which structural violence doesn't exist

Inequality/disparity/economic exploitation/political suppression incorporated in a social structure

Cultural peace

Cultural violence

The state in which cultural violence has been overcome

Forcing ideology or religion and justifying direct violence or structural violence

Violence

Through its business operations, H.I.S. Group aims for world peace by striving to overcome the structural violence or cultural violence that is the cause of direct violence.

36

H.I.S. Group CSR Report 2017

time only when we lose it. Another one is that a violent

term purpose. Additionally, the study group on Eiichi

conflict might actually be a natural phenomenon between

Shibusawa’s “Rongo” (Analects of Confucius) and

humanity. Humans have desires, and not only between

“Soroban”(abacus) is being promoted. What kind of

individuals, but also between countries, or between ethnic

company do you think is sustainable?

groups, the occurrence of conflict cannot be avoided.

Shibusawa: The Commons Asset Management has five

Peace might not naturally exist in this world unless we

points of view regarding the selections for investment. One

consciously create it.

of them is profitability. It's a financial value showed by ROE,

Namekata: For sure, conflicts occur naturally due to

etc. It is possible to be converted into numbers, so it's called a

desires and interests.

“visible value”. The remaining 4 values, all of which are invisible,

Shibusawa: The reason why we need peace is because

are difficult to convert into numbers. Actually, in these values,

there is continuity in time. In order for humanity to

that is where the possibility of creating sustainable value

cohabitate for long time, “give and take” are necessary.

for companies is hidden. One of them is competitiveness.

I believe in ethics and morality, whose wisdom is

Meaning, why is the company competitive? The next element

needed for humanity to maintain peace.

is management strength. Successful companies have wonderful

Namekata: For a society to sustainably exist, rules are

leadership. Management strength is how well the leadership

established in the form of social norms or cultures,

can be handed to the next generation. Next is the ability to

which function as deterrents and are transmitted to the

communicate. I think this is real governance and foundation to

next generation.

generate sustainable value in a company. Communication with

Shibusawa: I might be changing the topic a little, but

various stakeholders is important. The last one is company’s

capitalism and democracy are driven out of control

culture. People are the most important resources and assets.

by selfishness. Of course, the current situation is

However, I think how we evaluate people and how well we

important, but if the people in support of capitalism

describe the evaluation also belongs to company culture.

and democracy were to consider the future generations

“Rongo”(Analects of Confucius) and “Soroban”(abacus)

of children and grandchildren to come, they would be

are referred to as symbols of moral capitalism. However, I

peaceful. Conversely, if we think only of the present,

understand that it is not only teaching what is right and pure,

capitalism and democracy tend to be violent.

but also teaches about state and reason why morality and

Namekata: It is important to always think long-term

ethics are important to create sustainable value. A win-win

with time continuity to be conscious of the fact that

situation for both makes co-creation possible.

peace is not a guarantee.

Namekata: I see. Sustainability is born from there. Thank you

Shibusawa: That is right. And in order to be conscious

very much for your valuable opinion today.

about peace, thinking from other people's point of view is required. The work of the H.I.S. Group leads to this exercise. Anyone can easily go overseas and experience the idea that “There is a world like this” Therefore, I think that going overseas is important.

The positive aspects in choosing a company aiming at long-term investments - Visible values and values that cannot be converted into numbers -

Namekata: Currently, the number of Japanese international travelers remains steady. Do you think that Japanese people need to go overseas more? Shibusawa: I think so. By going overseas, the people who are locked in the frame of Japan will realize the goodness of the places where they are from by seeing it from outside. In addition, having various points of view widens and enlarge one’s frame little by little. Living inside of the frame is a comfortable safety zone. Seeking safety is a natural instinct. However, could it mean that staying within the same frame narrows it little by little? Namekata: The Commons Asset Management carries out its business operations for investment with a long-

Profile

Ken Shibusawa

Born in 1961, Ken Shibusa was transferred from an international corporation in the financial industry after obtaining an MBA in the U.S. He engaged in dealing Japanese government bonds and currency options, as well as the sale of business equity derivatives in a foreign financial institution, and then served as a Japanese representative in a major U.S. hedge fund. He became independent in 2001, established Commons Corp., Ltd. in 2007 and assumed the post of chairperson in Commons Asset Management Inc. in 2008.

H.I.S. Group CSR Report 2017

37

ISO26000 Comparison table of core subjects Core subject

Agenda

Corporate governance

Items to deal with

掲載ページ

Interview with H.I.S. chairman

P.4〜5

Interview with H.I.S. vice chairman

P.8〜9

CSR promotion policy and structure

P.34

Corporate governance

P.35

Sawayaka- Hot Line

P.29

Settlement of complaint

Sawayaka- Hot Line

P.29

Discrimination and social vulnerability

Promotion of employment for disabled people

P.29

Due diligence Critical situation about human rights Avoidance of complicity Human rights

Civil and political rights Economic, social and cultural rights

Inclusive Tourism

P.22〜23

Fundamental principles and labor rights

Pursuit of employee satisfaction

P.29〜31

Related to Employment

Pursuit of employee satisfaction

P.29〜31

Working conditions and social security Employment practice

Improvement of working conditions

P.29

Child care support

P.30

Social dialogue Occupational safety and health

Improvement of working environment

Cultivation of human resources and training in the working place

Human resource development for the next generation

P.29

Human resources development

P.10〜11 P.30

Prevention of contamination Environment

Sustainable utilization of resources

Coexistence with nature

P.32〜33

Mitigation of climate change and adaptation to climate change

Coexistence with nature

P.32〜33

Eco Tour to think about the environment

P.32

Next generation energy park Huis Ten Bosch

P.33

Fair competition

Quality Control & Market Research Department

P.27

Promotion of social responsibilit y in the value chain

Quality Control & Market Research Department

P.27

Protection of environment, biodiversity and recovery of natural habitats Corruption prevention Responsible political engagement Fair business practice

Esteem of property right Fair marketing, unbiased information based on facts and fair contractual practices

Pursuit of customers’satisfaction

P.26〜27

Protection of consumers’safety and health

Pursuit of customers’satisfaction

P.26〜27

Sustainable consumption Consumer affairs

Service and support to consumers and for complaint and dispute settlement

Next generation energy park Huis Ten Bosch

P.33

CSR activities of overseas offices

P.16〜17

Sample of improvement taken from the customer's voice

P.27

New proposals for travel

P.28

Protection of customers’data and privacy Access to the necessary services

Pursuit of customers’satisfaction

P.26〜27

Education and raising awareness

Pursuit of customers’satisfaction

P.26〜27

Participation in the community

All pages of“Cohabiting with local communities”

P.14〜19

Cultivation of precious human resources that bear the next generation

P.10〜11

Trip for learning and interaction

P.24〜25

Education and culture Participation in the community and development

Job creation and skills’development

Eco Tour to think about global environment

P.32

CSR activities of overseas offices

P.16〜17

All pages of“Cohabiting with local communities”

P.14〜19

All pages of“Cohabiting with local communities”

P.14〜19

Development of technology and access to technology Wealth and income creation Health Social investment

A new step toward space travel

P.7

Henn-na Hotel/plant factory with the highest productivity in the world

P.7

Editorial policy We qualify this report as an important media to promote

communication with shareholders as well as to keep you

informed of or CSR activities. We utilize ISO26000 as the

guidance for our CSR activities and we act regarding the 7 core

subjects of the organizational social responsibility as our main guidelines. We also regard this as the report of 3 areas: society,

environment, and economy, which are related to the sustainability

referred to in the Sustainability Reporting Guideline 2006.

Scope and time period [Objectivity scope]

This charter pertains mainly to the H.I.S. Group. If entities besides

the group are featured, information as such will be given.

38

H.I.S. Group CSR Report 2017

[Time period]

End of period October 2016

(From November 1, 2015 to October 31, 2016)

Please note that the results featured above are strictly valid for the determined period.

[Publication] January 2017 [Referred guideline]

ISO26000:2010 (Guidance on social responsibility) first edition

GRI (Guidance Reporting Initiative): “Sustainability Reporting Guideline, Third edition (G3.1)” Disclaimer

The numbers indicated in the tables and graphs in this report are rounded, so the sum may not add up. In addition, according to the expansion of the range and readjustment of the calculation methods, there are parts that have been changed from the data of previous years.

Opinions from third party From now on, so that H.I.S. Group further promotes CSR and makes high-quality CSR reports, we invited Ms. Tatsumi and received her opinion as third party on December 16th, 2016. The following is the summary of her opinion.

■ After reading CSR report 2017 by H.I.S. Group While I was reading this report, the first thing that caught my attention was the new corporate philosophy. I fel t that the opening phrase, “In accordance with the law s of the universe” was especially wonderful. For the “development of a sustainable Nippon Association of society” that we aim for now, this Consumer Specialists phrase gets to the point. If we do Board Member something that is against the laws Kikuko Tatsumi of the universe, a sustainable society cannot be achieved. I heard that the phrase has been adopted as a policy since its founding and I felt a deep philosophical sense to it. I would like the whole group to surely share it.

I am interested in energy related issues. The other day, I visited Huis Ten Bosch that makes various progress efforts. I also stayed at “Henn-na Hotel.” Looking at the robots performing their tasks was entertaining, especially for the kids who were delighted and it also made me feel pleased. Additionally, as described in this report, in Huis Ten Bosch, vegetable cultivation by LED lights was conducted and solar power generation systems were also successfully operated in various places.

However, there was a topic that I was anxious about. It is regarding LED lights or storage batteries charging electricity, and there was not much detailed explanation. It would be better if there would be more explanations.

At first, the consideration for the environment was difficult to see. I would like the advanced efforts in Huis Ten Bosch to be widely spread to inform consumers. Companies and consumers are in a “give and take” relationship. If companies keep saying that cheap prices should be valued, consumers will seek only for cheap items. In contrast, if companies show that there are other values in addition to environmentally conscious methods, which tend to increase the price, consumers will consider those values in terms of more than just the price. Besides, if consumers show the attitudes that they would purchase items which they see as valuable even if they are a little expensive, companies will realize that it is not good to focus solely on cheap prices. I think that companies grow consumers and consumers grow companies. From that meaning, calculating the amount of CO2 emissions in each office for the first time is revolutionary and I think highly of this initiative.

This report is very good because necessary elements are summarized uniformly and clearly. Please make good use of this report as a communication tool not only for external communication but also for internal communication.

However, I'm concerned about a downward-sloping section of the line graph of “Trends in Employee Satisfaction Survey” in the employee's satisfaction survey. Internally sharing purposes and results of daily work leads to improvement of workers' satisfaction. I would like you to use this report for that purpose.

■ Receiving opinions from a third party H.I.S. Group expanded its business fields other than the travel business. In order for a grown organization to rapidly implement management with the aim of innovative governance, a new structure which clarifies responsibility and authority for each business field started on Nov. 1st, 2016. In addition, a new group philosophy restating the meaning of H.I.S. Group's existence was also formulated.

Considering the above, in this CSR report, the concept of the group philosophy and the long-term management policy are summarized, and the topic “coexistence with nature” was added after newly considering activity situations in each business site and concern for the environment.

Ms. Tatsumi had a high opinion about the environmentally conscious activities in Huis Ten Bosch with the comment that the activities were very wonderful. However, she pointed out that, with the aim of environmental education, we should show our environmental activities to consumers

more. We plan to improve on this aspect. As CSR goals, in this fiscal year, we would like to proceed with 6 main goals, (1) strengthening of CSR awareness campaign activities (2) strengthening cooperation of CSR Director CE/ES (3) positive efforts toward Katsuhiko Sakaguchi peace operations (4) promotion of accessibility(5) contribute to local communities (6) coexistence with nature. I think that CSR activities are at the core of corporate management. In this fiscal year, I would like to specifically make a strong effort towards consideration for customers and improvements for a better working environment for staffs while maintaining the current operations, I would like to keep challenging myself. H.I.S. Group CSR Report 2017

39

Regional development and contribution ■T  he promotion and boosting of the economy through regional development The H.I.S. Group creates more attractive travel products and services by incorporating atmospheres unique to cultures, history, specialties, and hidden spots while providing information about specific regions. The H.I.S. staffs are often participating in local events such as ones organized by local shopping streets. They select hotels and inns while verifying all sorts of information, develop activities, find and create attractive products which used to be known only by local people. We are going to increase these community-based office development to Hokkaido, Okinawa, Kyushu, and Tohoku. Activity Japan Co., Ltd. became a subsidiary of the H.I.S. Group in March 2016. The team works together with

Operation of a tour to stay in a farmhouse by Japan Holiday Travel In a ci t y in N a g an o w el c o m e s s t u de n t s f r o m school trips and foreign tourists in Japan to stay in farmhouses so that they can experience various types of farming chores. Japan Holiday Travel worked together with Nagano Prefecture, designed and implemented the tour farmhouses' stays in Ina. We will keep turning attractive resources of Japan into successful products rather than simply offer to tour large cities and famous tourist attractions. We will thereby offer community-based tourism products so that tourists can enjoy attractive features of regional areas which are onestep closer into the lives of ordinary Japanese people.

local governments to investigate and analyze markets, create websites, advertise and sell experience-based tourism and regional culture exploration plans through the Activity Japan special reservation platform. This company offers new experience-based values to travelers.

Activity Japan, the reservation website

H.I.S. Coupon H.I.S. Coupon is a website providing information on

number of copies, and preserve the environment by

several discounts related to tourism. The website

reducing our consumption of paper. “Local student

is offering time-limited offers for specific number

coverage video” where students from local areas

of tourists such as discounted tickets for theme

introduce the attractiveness of their hometowns are

parks, zoos, aquariums, museums, and hot springs,

also uploaded as content.The H.I.S. Group is also an

as well as discounts for restaurants, souvenirs at

executive member company of the Furusato Meihin

airports and tourist attractions. The application

of the Year, sponsored by the Cabinet Office to

version of this website was listed at the top of

promote original hidden gems in all regions. We are

download by users in the travel industry, with about

thus supporting

one million users every year. Digital pamphlets of

the development

local governments tourist attractions around Japan

of such wonderful

are available on this coupon website. Tourists can

areas for their

browse them using smartphones before their trips.

future.

By analyzing the data such as browsing history, we can realize more efficient pamphlet setting and reduce printing expenses by adjusting the

18

H.I.S. Group CSR Report 2017

H.I.S. Co., Ltd. CSR Office Shinjuku Oak Tower 29 F 6 - 8 -1 Nishishinjuku, Shinjuku - ku, Tok yo 163 - 6029 ht tp://w w w.his .co.jp

10450 070

Photographs on the front cover from the top: Wheelchair accessible in the Uyuni Lake tour/Spinning thread experience tour in Cambodia/Image of a manned spacecraft in PD Aerospace/Reserved beach, Turtle Lagoon in Hawaii/Image of reception desk at the second Henn na Hotel in Maihama, Tokyo Bay/Huis Ten Bosch Kingdom of Light The photographs on the back cover from the top: Reserved beach, Turtle Lagoon in Hawaii/Staffs in Huis Ten Bosch/Kumamoto recovery event at Kumamoto castle/Wheelchair accessibility in the Honolulu marathon tour/Study tour building a school in Cambodia/"Hen na Restaurant" in Huis Ten Bosch/External appearance of Watermark Hotel & Spa in Jimbaran, Bali

Thank you very much for reading the H.I.S. Group CSR report until the end. In the future, for CSR activities and for the creation of better reports, we would like to hear your valuable opinions and feedback. Please access to the URL in the right side and answer the web questionnaire. http://www.his.co.jp/csr/