2026 Volume 36 Pages 90-97
Publicly owned and privately operated accommodations in depopulated areas are facing significant financial challenges. To support the operations of these facilities, municipalities provide annual subsidies. A key issue is their inability to forecast the necessary subsidy amounts needed to ensure business continuity. This study applies break-even point analysis to estimate the subsidies required to sustain a publicly owned and Privately Operated accommodation. The analysis focuses on a multi-purpose accommodation facility managed by a third-sector organization in Tenryu Village, Nagano Prefecture. Financial data from the facility reveals a cost structure in which revenue increases lead to proportional expense increases, preventing the achievement of a break-even point at which total revenue exceeds total costs. The facility relies on subsidies to cover fixed costs, regardless of revenue fluctuations, ensuring a balanced budget and eliminating operating deficits.
