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Travel program fiasco may see government paying Tokyoites' cancellation fees

Jul 20, 2020 (Japan Times) - The government is considering covering cancellation fees incurred by Tokyoites who were excluded at the last minute from a domestic tourism promotion created to help coronavirus pandemic-hit regions, sources close to Prime Minister Shinzo Abe said Monday.

The Go To Travel campaign was thrown into disarray ahead of its official start Wednesday when the government abruptly said last Friday that trips to and from Tokyo will not be covered under the subsidy program.

The government initially said compensation was not an option but has been compelled to change course in the face of public anger and growing calls, even from within the ruling coalition, for a rethink.

“People won’t be satisfied as it is,” an official at the Prime Minister’s Office said.

Abe has been struggling to stem a recent fall in the polls, due in part to what has been perceived as his poor handling of the coronavirus crisis.

The ¥1.35 trillion ($12.59 billion) travel campaign is designed to spur tourism, a sector pounded by the coronavirus outbreak that led to a nationwide state of emergency in spring.

The campaign will eventually subsidize up to half of all travel expenses, including accommodation and transport costs, to a maximum of ¥20,000 per night for overnight trips.

The government will first provide discounts worth 35 percent of total costs, with the remaining 15 percent covered by coupons to be issued after September for food, shopping and other activities.

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