Tourism National Travel Discount

The "National Travel Discount," which Prime Minister Fumio Kishida announced Thursday in New York, will replace the "Go To Travel" subsidy program and expand similar existing programs operating at the prefectural level. The scheme is expected to provide the equivalent of up to 11,000 yen ($77) in discounts and coupons per traveler per day which can be used for meals, shopping and accommodation fees. The government plans to announce details of the program as early as Monday, but it has raised doubts about whether it will boost regional economies. [...] With the start of the program less than three weeks away, the announcement has also left tourism businesses and facilities with little time to prepare, as well as caused confusion about whether the program can be applied to new accommodation reservations.

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The National Travel Discount program, which is available to Japan residents only, comes in the wake of the "Go To Travel" subsidy program and expands on similar existing programs operating at the prefectural level. Under a system where the national government subsidizes the costs borne by prefectural authorities to implement such programs, the 47 prefectures will be allowed to suspend the scheme depending on the infection situation within their jurisdiction. Prefectural governments will have the authority to determine the scheme's running period or whether to implement it at all, leading to the possibility that it may not be launched simultaneously across the country. The new program was initially planned to be introduced in July but was postponed due to the nation's seventh wave of infections.

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The move is part of efforts to support the domestic tourism industry, which has been battered by the COVID-19 pandemic The maximum discount to be awarded per tourist, per night will be lowered from ¥11,000 to ¥7,000, including shopping coupons that can be used at places such as restaurants. Users of the program will be required to show proof of having received a booster shot for COVID-19 or a negative test result. Each prefecture will decide when to terminate the program in light of financial funding provided by the central government. The resources will be available at least until the end of March, according to the agency. The discount rate for travel will be reduced from 40% to 20%, while the ceiling on the discount amount will be lowered from ¥8,000 to ¥5,000 a night per tourist for tour packages that include public transportation services and from ¥5,000 to ¥3,000 for hotel stays only and single-day trips. Shopping coupons to be provided as part of the program will be issued in electronic form in principle. The amount issued in coupons will be cut from ¥3,000 to ¥2,000 for weekdays and remain at ¥1,000 for weekends and holidays.

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