Junglia Okinawa Seeks New Investors After ¥8.9 Billion Loss as Attendance Falls Short

A costly first year brings a search for fresh funding

Junglia Okinawa is seeking new investors after its operator, Japan Entertainment, recorded a net loss of ¥8.9 billion on sales of ¥10.3 billion for the financial year ended June 2026. The theme park and its adjoining spa attracted 956,000 visitors, well below management expectations, putting pressure on cash flow less than two years after the project opened in northern Okinawa.

The financial strain extends to its parent, Japan Entertainment Holdings, which approved accounts showing a net loss of about ¥17.3 billion at a continued shareholders meeting in Naha on October 30. Management acknowledged responsibility and apologized as shareholders questioned its handling of the business.

Japan Entertainment has also signed an agreement for ¥3 billion in bridge financing from the government affiliated Okinawa Development Finance Corporation. That borrowing provides money for immediate needs while the company seeks investors and reduces operating costs.

Chief executive Takeshi Kato, who also represents the parent company, said the business needed a new investor to strengthen its finances and support future investment. Management is targeting a decision around February 2027, although Kato described a broader negotiating period of several months to half a year.

The recovery plan starts with a smaller expected audience. Japan Entertainment forecasts 638,000 visitors for the year ending June 2027, about one third fewer than the opening period. Its immediate task is to make the park affordable to operate at that lower attendance level while improving the experience that persuaded people to visit in the first place.

What the two companies lost

Japan Entertainment runs Junglia, while Japan Entertainment Holdings is its parent company, backed by local businesses including Orion Breweries. Their results describe different corporate accounts: the operator reported the ¥8.9 billion net loss, and the parent reported the approximately ¥17.3 billion net loss.

The operator's loss was equivalent to about 86 percent of its ¥10.3 billion in sales. That comparison shows the scale of the financial shortfall relative to the money the business brought in during its first operating period.

Management also presented an adjusted loss of ¥2.65 billion, excluding taxes, interest payments and depreciation. Depreciation is an accounting charge that spreads the cost of buildings, equipment and other long lasting assets across the years they are used.

The adjusted figure helps explain the operating challenge beneath the larger net loss. Even after those expenses were removed, the business was still losing money. Reducing financing costs alone would therefore leave the company with substantial work to do on everyday income and spending.

Kato acknowledges failures in service and response

Kato told the October 30 press conference in Naha that Junglia had failed to deliver the visitor numbers and financial performance expected in its opening year. The Japan Entertainment chief executive accepted responsibility for those results.

We failed to deliver results in attracting visitors and generating earnings. I take that responsibility deeply.

Kato identified two connected problems: the park had not provided the service visitors expected, and management had been slow to restructure as attendance weakened. His explanation places both the guest experience and the company's response to falling demand at the center of the recovery effort.

Junglia's opening in July 2025 had already brought complaints about long waits, difficulty moving around the grounds and insufficient shelter from the weather. The park occupies 60 hectares of a former golf course, making movement, waiting areas and protection from Okinawa's weather practical parts of a visit.

Kato's latest remarks broaden the issue beyond initial opening problems. Management is now acknowledging that service shortcomings and the pace of its own financial response contributed to the disappointing first year.

A smaller audience shapes the recovery plan

Japan Entertainment expects attendance to fall from 956,000 in the opening period to 638,000 in its second year. The difference is 318,000 visits, a decline of approximately 33 percent. The opening total includes the adjoining spa facility.

The company is planning around that reduced demand instead of basing its immediate recovery on a rapid return to higher visitor numbers. It intends to optimize staffing, reduce outsourcing and adjust the scale of operations so that fewer visitors can still support a viable business.

On the adjusted measure used to describe operating performance, management projects a loss of ¥1.36 billion for the second year, compared with ¥2.65 billion in the first. That would reduce the loss by ¥1.29 billion, or about 49 percent, even as attendance falls.

Structural reforms are expected to be completed by spring 2027, with the aim of making the business profitable at the projected attendance level. The annual loss forecast and that operating goal cover different stages of the recovery: the financial year includes months before the planned reforms are finished.

The company also plans to attract more group visitors. Group bookings can give an attraction a clearer view of expected demand, helping it plan staffing and services. Management has not announced a numerical target for that part of the business.

Bridge financing buys time for an investor search

The ¥3 billion financing agreement with the Okinawa Development Finance Corporation provides temporary funding while Japan Entertainment works on a more durable financial arrangement. A bridge loan is borrowing intended to cover a gap before another source of money becomes available.

Borrowing and investment serve different purposes. A loan creates a repayment obligation, while a new investor supplies capital in exchange for an ownership interest or other agreed rights. Kato said participation by a new investor was essential for strengthening the financial base and making further investment possible.

Several companies have expressed interest, according to people familiar with the situation. The company nevertheless said it was not currently negotiating with a specific prospective investor. Expressions of interest are therefore at an earlier stage than an agreement on funding and ownership.

Kato said he would take responsibility for securing new investment. Management's February target falls within his broader estimate of several months to half a year, but the investor, investment amount and terms have not been decided.

Japan Entertainment also wants to undertake major investment under a new investor. The proposed recovery therefore has two parts: spending less to stabilize current operations, then securing capital for growth.

Shareholders press management for answers

Japan Entertainment Holdings reconvened its annual shareholders meeting in Naha on October 30, starting at 10 a.m. and finishing at about 11:50 a.m. The meeting approved the June 2026 financial statements, which had not been approved at the previous session.

Shareholders questioned management responsibility for the losses. Kato's position at both the operator and its parent puts him at the center of the response, from changes in park operations to the search for funding.

Tsuyoshi Morioka, chief executive of consulting and marketing firm Katana, attended the continued meeting. Morioka led the Junglia project and is known for his earlier work helping revive Universal Studios Japan. Speaking afterward, he described the discussions and his commitment to the business.

We held sincere discussions to get the business on track at all costs. We will move things forward firmly.

The approval of the accounts gave shareholders a formal record of the losses. The next operational tests are whether management can complete its planned reforms, improve service and secure the capital it says the business needs.

How a ¥70 billion tourism project reached this point

Junglia opened on July 25, 2025, in Nakijin Village in northern Okinawa, following a development investment of ¥70 billion. Its dinosaur attractions, outdoor adventures and spa were intended to draw more tourism spending into the north of the island.

The opening also introduced different admission prices based on residency. An adult day ticket cost ¥6,930 for residents of Japan and ¥8,800 for visitors from overseas, a difference of ¥1,870, or about 27 percent. Foreign residents of Japan could qualify for the lower rate.

The latest financial results shift attention from the launch proposition to whether enough paying visitors can support the business. Management's response covers both sides of that calculation: attracting guests through better service and group bookings, while reducing the cost of operating the park.

The main dates show how quickly the project has moved from opening to restructuring:

• July 25, 2025: Junglia Okinawa opened in northern Okinawa.
• June 2026: The first financial year ended, with 956,000 visitors recorded through the end of the month.
• October 30, 2026: The parent approved its accounts at a continued shareholders meeting, and management explained its recovery plans.
• February 2027: Management is targeting a decision on new investment.
• Spring 2027: Structural reforms are expected to be completed.
• June 2027: The second financial year ends, with attendance forecast at 638,000.

What changes for visitors and northern Okinawa

Visitors will encounter the practical results of a plan that combines staffing changes, less outsourcing and efforts to repair service weaknesses. Kato's acknowledgment that expectations were not met makes the quality of the visit a central part of the recovery, alongside cost control.

Employees and contractors face a review of how much work is needed and how it is organized. The company has announced staffing optimization and reduced outsourcing, without specifying how many positions or contracts would be affected.

Northern Okinawa's tourism ambitions also depend on the outcome. Junglia was built to encourage visitors to travel beyond the island's busier central and southern areas, bringing spending and employment with them. A lower attendance forecast means the project is now planning for a smaller immediate flow of guests than its opening ambitions suggested.

The financial milestones are concrete: obtain new investment, complete reforms by spring and reduce the annual adjusted loss while operating with fewer visitors. Delivering those changes together will determine whether Junglia can move from an expensive launch to a business its customers and investors can sustain.

Key Points

• Japan Entertainment reported sales of ¥10.3 billion and a net loss of ¥8.9 billion for the year ended June 2026.
• Parent company Japan Entertainment Holdings approved accounts showing a net loss of about ¥17.3 billion.
• Opening attendance reached 956,000, including the adjoining spa. The second year forecast is 638,000.
• The operator signed an agreement for ¥3 billion in bridge financing and is seeking new investors.
• Kato acknowledged shortcomings in service and delays in responding to weaker attendance.
• Management targets an investment decision around February 2027 and completion of structural reforms by spring.