Coronavirus: Japan to give people discounts of US$190 a day to boost domestic tourism
- The Go To Travel Campaign, to begin around July, will provide local travellers with subsidies for hotels, restaurants, transport and attractions
- There will also be funding for travel firms, but some are unsure if they will benefit or if the incentives are enough to entice travellers amid the pandemic
Details of the Go To Travel Campaign are still being worked out, but the government said it would include subsidies of up to 20,000 yen (US$190) per day – provided through discounts or vouchers for hotels, restaurants, transport and attractions – for people taking domestic trips.
The lack of clarity in announcement, made last month, led to some media outlets erroneously reporting the campaign would include foreign travellers, which officials disputed last week.
“The Go To Travel Campaign under consideration by the Japanese government is to stimulate domestic travel demand within Japan after the Covid-19 pandemic and only covers a portion of domestic travel expenses,” the Japan Tourism Agency said on Twitter on May 27.
To receive the subsidies, travellers must use domestic travel agencies or stay at local hotels and ryokan, Japanese inns. The campaign is likely to begin in July, the government said.
Naomi Mano, president and CEO of boutique travel agency Luxurique, said the assistance was welcome and important, although she was still in the dark about how it operates and who the government was targeting.
“Any measure that opens doors to allow people to start travelling again has to be a positive development,” she said. “[But] from what I can tell, this funding plan at the moment is utterly confusing and I’m not sure who they are targeting.”
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Families with children were unlikely to take a holiday this year, Mano said, as job uncertainty weighs on the minds of parents. Young singles had similar worries but may take weekend breaks relatively close to home. That leaves the older demographic as the only group who might be willing to take up the government’s offer – although this group may have concerns over health issues.
“The over-65s may be willing to travel and take advantage of the 20,000 yen in vouchers, but before that, the industry and travellers need clear guidelines on just what ‘safe travel’ means,” she said.
“For people to travel, they need to understand the requirements and what other countries are doing as best practice to protect travellers’ health,” she said. “Right now, those guidelines are missing and that’s not useful for the industry or people who want to go on holiday.”
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Noriko Takano, president of Fukuoka-based Freya International Tours, was optimistic that Japanese people would start travelling domestically as early as the end of June, and that international tourists would return in August.
“I believe that the government has to do everything it can to attract overseas tourists as quickly as possible, even though I know that some Japanese are opposed to opening up soon,” she said.
The government would permit business travellers from the four countries to enter if they test negative for Covid-19 in two separate tests conducted upon departure from their home country and arrival in Japan, the Asahi newspaper reported, citing unnamed sources.
Once permitted into the country, visitors’ movements would be restricted to areas including place of stay, company offices and factories, the newspaper said, adding that use of public transport would be banned.
In April, some 2,900 foreign travellers visited Japan – accounting for a 99.9 per cent drop from the year earlier and the lowest figures in nearly six decades, data from the Japan Tourism Agency showed. The previous low of 17,543 monthly visitors was recorded in February 1964.
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Meanwhile, the head of one domestic travel agency expressed concern that the Go To Travel Campaign’s funds would be disproportionately allocated to large travel firms, such as JTB Corp, which already have long-standing ties and contracts with different arms of the government.
“If that happens, all that money will be of little use to boutique hotels that do not have relationships with JTB or smaller travel agencies,” said the executive, who did not want to be named.
Julia Maeda, joint owner of the Okuni boutique travel agency, said that 20,000 yen per day was not going to be a huge incentive for high-end travellers, and the majority of those who would take up the offer would be older group travellers booking through big agencies.
“The money should be channelled to ryokan or small hotels, to restaurants or resorts that can directly give their clients a percentage reduction and then apply to the government for a rebate,” Maeda said. “That would also help to get visitors out into the really rural areas that the government has been promoting as destinations.”
Additional reporting by Reuters
