Japan to extend travel subsidy program until around June

TOKYO, Dec. 3 Kyodo - The Japanese government is set to extend until around June next year its domestic travel subsidy campaign aimed at boosting the economy amid the novel coronavirus pandemic, a source familiar with the matter said Thursday. The "Go To Travel" campaign will continue beyond its original end date in late January as the government sees the need to keep supporting the tourism industry and regional economies battered by the pandemic, the source said. The extension will be stipulated in the government's additional economic stimulus package, expected to be approved in early December. The program, which was launched in late July, effectively covers about half of domestic travelers' expenses. Recently, however, trips to Sapporo in northern Japan and Osaka in the west have been excluded and residents of the two cities are asked to refrain from using the campaign amid a recent resurgence of coronavirus cases across the country. The government and Tokyo Gov. Yuriko Koike are also asking people aged 65 and older and those with underlying health conditions to refrain from making trips to or from the capital using the scheme. The government is still discussing the new end date of the campaign as it is difficult to predict how the pandemic will play out, according to the source. Japan reported more than 2,400 new coronavirus infections on Wednesday, bringing the nationwide total to over 154,000 with more than 2,200 deaths. The ruling Liberal Democratic Party and its junior coalition partner Komeito have been asking for the scheme to be extended until the end of the Golden Week holidays in early May. As there are concerns that ending the campaign right after the holidays may cause travel demand to nosedive, the government is considering keeping the scheme until around June but gradually reducing discount rates. Under the 1.35 trillion yen ($12.9 billion) scheme, a 35 percent discount is given for hotel and package tour expenses, while an additional 15 percent discount is offered in the form of coupons for shopping and dining at travel destinations. The overall discount is capped at 20,000 yen per person per night and 10,000 yen for a day trip. The government will also study whether to increase the discount rate for trips made on weekdays to level off demand at weekends when it tends to rise, the source said. As of Nov. 15, a total discount of 250.9 billion yen was provided for 52.6 million overnight stays in the campaign, which initially excluded travel to and from Tokyo due to a high number of coronavirus cases there. The capital was added to the program on Oct. 1. The government had been notified of 202 coronavirus infection cases among "Go To Travel" users as of Nov. 26. ==Kyodo