Japan has suspended its tourism subsidy program. What impact will this have on the local tourism market?

This has dealt a huge blow to the local tourism consumption market in Japan, because the tourism market itself is very fragile under the impact of the epidemic. Now, if subsidies are stopped, the recession may be further aggravated. Recently, some Japanese media reported that due to the continuous spread of the epidemic, Japan plans to cancel tourism subsidies in Tokyo and Nagoya to ease the spread of the epidemic. It is reported that the Japanese Prime Minister has been discussing this matter with relevant officials, and then there will be local government coordination. However, this decision is still final and needs to be announced after consultation between cabinet officials and two local governments. In addition, the two sides are still further discussing whether to extend the subsidized governments that are about to expire in Osaka and Sapporo.

Earlier, at a media conference, the Japanese Prime Minister said that this tourism subsidy policy was mainly to boost the local tourism market, but he also said that he would actively negotiate with the local government to deal with the epidemic that may continue to spread. It is reported that Hokkaido and Osaka, where the virus spread seriously before, have been excluded from the subsidy policy, and because the virus continues to spread in Japan in winter, the Japanese government may further expand the relevant restrictions. As compensation for suspending travel subsidies, the government will give about 35% consumption subsidies to hotels and travel agencies that cancel travel orders, and the government will also compensate enterprises that increase employees accordingly.

It is reported that this suspension measure may last until the middle of next month, but the government said that it will carry out real-time regulation according to the spread of the epidemic. However, the suspension of subsidies at this time is even more difficult for Japan's tourism industry, which is already in a downturn.

Many companies related to tourism said that with the spread of the epidemic in winter in the future, the recovery of tourism is far away. Now, only by waiting for the winter to pass and the arrival of next year's summer Olympic Games can tourism bring vitality, but it is still difficult to know the current situation of the Tokyo Olympic Games.