Southern Travel Holdings lost nearly $1 million last year, following a sharp reduction in the number of Japanese tourists visiting New Zealand and Australia.
The listed tourism company, which specialises in organising tours and travel for Japanese travellers, says sales declined 13%, resulting in a loss of $950,000.
Sales from Japan fell 16%, forced the company to restructure its business there.
Southern Travel says revenue earned in Australia will exceed that from New Zealand, and the business is expanding its operations across the Tasman to cope with that.
