Boosting tourism in the Japanese style.

Recently, the Japanese government launched the "Go to Travel" campaign to boost the tourism industry and consumer spending amidst the crisis caused by the Covid-19 pandemic. The Japanese economy has now fallen into recession despite the government having released over $1 trillion in relief funds.

In April 2020, Japan's tourism industry suffered a severe blow due to the Covid-19 pandemic. In April alone, Japan received only about 2,900 international visitors, a 99.9% decrease compared to the same period the previous year. This was the first time since 1964 that the number of international visitors to Japan had fallen below 10,000.

Worse still, the domestic tourism market is also sluggish due to government-imposed quarantine measures. Therefore, the Tokyo government is now hoping for a return to consumption, tourism, and shopping to stimulate the economy once the pandemic is under control.

The current problem is that Japan cannot fully open its doors to international tourists due to the complicated pandemic situation abroad. Therefore, like many other countries, the domestic tourism market has become the target for stimulus policies.

On July 10, 2020, Japan's Minister of Land, Infrastructure and Transport, Kazuyoshi Akaba, announced the launch of a 1.7 billion yen "Go to Travel" program to stimulate domestic tourism. The program will begin on July 22, 2020, half a month earlier than originally planned, and will run until mid-March 2021 or until the budget is exhausted.

This program is one of Tokyo's projects aimed at boosting the economy after the Covid-19 pandemic through subsidies and promotions for local businesses to attract tourists back.

The "Go to Travel" project will cover half of the traveler's expenses, up to a maximum of 20,000 Japanese Yen per person per night or no more than 10,000 Japanese Yen per person per day. This amount will be provided through a combination of promotional discounts and gift vouchers usable at shops and restaurants near the tourist destination. Therefore, if a traveler books a trip including hotel, meals, transportation, etc., with a total value of up to 40,000 Yen per day, the government will subsidize up to 20,000 Yen.

In theory, foreign tourists would also be eligible for this subsidy if they book tours through travel agencies participating in this Japanese government stimulus program. Of course, Japan still has border closures with a number of countries, and only those countries that have reopened their borders are eligible to participate in the program.

Currently, the registration procedures for the project and the refund process are still being developed by the Japanese government, but it is likely that payments will be made via credit card or bank transfer. Furthermore, the specific conditions for participating in this tourism stimulus program have not yet been announced, but Japanese citizens are already extremely excited about these government relief policies.

Besides "Go to Travel," the Tokyo government is also considering a series of other stimulus projects such as "Go to Eat," "Go to Shop," etc. According to local media, the "Go to Eat" program will offer a 20% discount, up to a maximum of 1,000 yen, to any resident who makes an online reservation at restaurants and eateries.

My Tong