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Japan considering resuming domestic travel subsidies mid-Jan

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© Reuters. FILE PHOTO – Kimono-clad tourists in protective masks stroll along Nakamise Street, Asakusa District, during the COVID-19 outbreak that erupted in Tokyo on October 13, 2020. REUTERS/Issei Kato

TOKYO, Reuters – Japan is looking at resuming subsidy to promote domestic tourism starting in mid-January. The newspaper reported Sunday.

This will reduce the pressure on hotels and airlines affected by the shrinking tourism caused by the coronavirus epidemic. It also highlights the hope of policymakers that they can help lift the economy from its current slump through increased demand.

These subsidies are part of Fumio Kishida, Prime Minister’s pandemic relief programme that will likely be completed on Friday.

Japan stopped running a program that offered discounts for domestic travelers and paid travel fees to Japanese citizens in December as COVID-19 cases began to climb.

According to the Nikkei, the government may reopen the programme if requested by the tourism sector. It will be in place from around mid-January, February or late April.

According to the newspaper, government travel discounts will be greater on weekdays than they are on weekends. This is done in order to prevent trips from being concentrated at the weekend.

Without citing any sources, Nikkei stated that the travel discount will also be lower than in the past programme.

The government could not be reached immediately for comment.

A Reuters poll suggests that Japan’s third-quarter GDP fell 0.8% on an annual basis due to shortages in supply and the state of emergency measures to counter the pandemic.

According to analysts, consumption should pick up since the Sept. 30, end of curbs. However slowing Chinese growth along with lingering supply problems cloud the outlook for an export-reliant country. Monday will see the release of preliminary third-quarter data regarding gross domestic products by government officials.

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