1.5 T. Yen Lost by Barring Tokyo from Travel Campaign: Estimate
Tokyo, July 23 (Jiji Press)--The Japanese government’s decision to exclude trips to and from Tokyo from its “Go To Travel” tourism promotion campaign drew various responses from economists, with one estimating the loss of economic effects at some 1.5 trillion yen.
Takahide Kiuchi, executive economist at Nomura Research Institute Ltd., initially gave an estimate that the campaign to cover 50 pct of the travel costs through discounts and vouchers will push up the country’s overall consumption by 8.7 trillion yen annually, but now expects the annual consumption boost to be reduced by 1.54 trillion yen due to Tokyo’s exclusion, which came after new coronavirus cases began to increase again in the Japanese capital.
“The government should not have started the campaign at a time when infections are spreading,” Kiuchi said.
The government has allocated a budget of 1.35 trillion yen for the campaign, which started on Wednesday. It was originally set to cover the whole country.
Toshihiro Nagahama, chief economist of Dai-ichi Life Research Institute Inc. expects the campaign’s demand generation effects to be reduced to about 60 pct of the initially projected level.
[Copyright The Jiji Press, Ltd.]