Japan to extend travel subsidy program until summer

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Japan to extend travel subsidy program until summer

Tourists return to Nara Park in Nara in October after the restrictions on movement were lifted and the central government s travel subsidy program became available. Asahi Shimbun file photo The government plans to continue its taxpayer-funded subsidy program to promote domestic travel in April and beyond, despite indications that the tourism industry has rebounded from the COVID-19 epidemic.

The subsidies that are allocated to each prefectural government are expected to wrap up as soon as they are used up. The discounts will likely be available in many prefectures until summer, according to officials with the Japan Tourism Agency.

The subsidies can't be used for trips during the Golden Week holidays between late April and early May. Tours already booked for April and beyond are not eligible for the subsidies.

The subsidy program is in effect for travelers who reserve trips after the announcement of the subsidy program by each prefectural government.

Up to 20 percent of a trip's cost will be subsidized, the same as the current setup.

The discount is capped at 5,000 yen $36 per person for tours that include transportation and accommodation. The discount is for day trips or accommodations only, a maximum of 3,000 yen per person.

On weekdays travelers can get regional coupons worth 2,000 yen for use at restaurants and shops where they are visiting.

The coupon amount is 1,000 yen for trips on weekends and holidays.

The Japan Tourism Agency plans to expand the subsidy program beyond the current fiscal year at a March 8 meeting of the ruling Liberal Democratic Party's Research Commission for the Establishment of a Tourism Oriented Nation.

The Japan Association of Travel Agents, an industry group, had pressed for an extension of the program.

The tourism industry has yet to be firmly back on a self-sustained recovery path, said Hiroyuki Takahashi, chairman of the association, at a news conference in January. We want the central government to continue with the support program until April and beyond. Many LDP lawmakers at the March 8 meeting praised the agency's plan, but some agency officials expressed doubts whether the support program is still needed.

The number of domestic tours during the October-December period in 2022 surpassed the figure for the same period in 2019 before the novel coronaviruses hit, according to the agency.

The availability of the travel subsidy program during the last quarter of 2022, as well as the government slowed restrictions on movement, can be attributed to high demand during the last quarter of 2022.

Many people don't use the travel campaign because they're funded with public money.

Only 20 percent of respondents said they had used travel subsidies during the epidemic, according to a December survey conducted by the NLI Research Institute on lifestyle changes.

More than 60 percent said they did not plan to use the program. 30 percent said they could not afford to travel.

The survey shows that people with enough time and money are eager to take advantage of the travel subsidies. They include families with preschool or adult children, as well as households with annual incomes of 6 million yen or more.