- Japan’s government is considering replacing subsidies targeted at increasing domestic tourism as early as mid-January.
- Subsidies begin in mid-January.
The decision will relieve pressure on airlines and hotels, which have been affected hard by the coronavirus pandemic’s reduced travel, and emphasize officials’ ambitions for reviving the economy through pent-up demand.
The funds will be included in Prime Minister Fumio Kishida’s new pandemic-relief plan, which will be released on Friday. As COVID-19 infections increased, Japan discontinued a program in December that used taxpayer funds to offer domestic tourists lodging and travel charge discounts.
Japan May Resumption of Domestic TrOn request from the tourism industry, the Japanese government will consider resuming the program. Which used taxpayers’ money to offer domestic tourists discounts on hotels and domestic travel fees, from mid-January or February until late April.
World Leaders in Political Cartoons. According to the Nikkei, to avoid travel being concentrated on the weekend, the government would offer more significant discounts for travel on weekdays than on weekends.
Nikkei said that the maximum discount offered per travel would also be reduced compared to the previous program without identifying sources.
The government did not answer a request for comment right away. However, according to a Reuters poll, Japan’s economy declined by 0.8 % on an annualized basis in the third quarter as supply limitations and state-of-emergency restrictions to combat the virus hurt exports and consumption.
Analysts predict consumption to increase when the charges are lifted on September 30, yet slow Chinese growth and ongoing supply bottlenecks cast doubt on the export-dependent economy’s prospects. On Monday, the government will announce preliminary GDP numbers for the third quarter.