Philip Patrick Philip Patrick

Can tourism subsidies save Japan’s coronavirus-blighted economy?

Getty images

In a striking contrast of priorities, as the UK government offers discounted fast food vouchers to revitalise the restaurant and hospitality sector, the Japanese have chosen a different, healthier, method of boosting their own Corona blighted economy: half-price domestic travel. The Japanese government anticipates the move will see hordes of travellers roaming across the country indulging in the usual Japanese holiday activities of hiking, camping, making pilgrimages to shrines, and bathing in hot springs – all the while, of course, spending money.

The ‘Go To Travel’ campaign, as it has been called, is a bold and expensive (1.35 trillion yen or £10bn) initiative, and is, in theory, a good and potentially popular idea. Unfortunately, it has fallen foul of a recent spike in Corona cases, particularly in the Tokyo area (though most recently elsewhere too), which has re-spooked a population just starting to imagine a return to something approaching post-pandemic normality.

The uptick in case numbers forced the government to rewrite the rules and exclude Tokyo from the plan. It has also led to criticisms from the socially unified and community conscious Japanese public that now is not an appropriate time to be encouraging such a selfish and potentially dangerous pursuit as leisure travel. And with the government flip-flopping on compensation for Tokyoites who had planned on using the scheme, the initial uptake has been modest.

However, if there is a spike in rationality (the Corona ‘surge’ correlates neatly with a significant increase in testing, and has not been accompanied by a rise in hospitalisations or deaths), most expect the ‘Go To’ campaign to ultimately be successful. It has been welcomed by Hideyuki Sato, head of the Japanese hotel and Ryokan (Japanese style inn) Association, and researchers and industry experts, such as Yutaro Suzuki, of the Daiwa Institute predict positive outcomes for the programme in the long-run.

Already a subscriber? Log in

Keep reading with a free trial

Subscribe and get your first month of online and app access for free. After that it’s just £1 a week.

There’s no commitment, you can cancel any time.

Or

Unlock more articles

REGISTER

Comments

Don't miss out

Join the conversation with other Spectator readers. Subscribe to leave a comment.

Already a subscriber? Log in