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Japan plans to boost tourism — but only domestically

Kawaguchiko Lake, near Mount Fuji in Japan
Fishermen sailing a boat in Kawaguchiko Lake near Mount Fuji in Japan. (Getty)

Japan clarified that government plans to boost its tourism industry, which has been hit hard by the coronavirus pandemic, apply only to domestic travel. Earlier, some publications had reported that the initiative could cover half the travel expenses of tourists coming from outside the country.

The Go to Travel campaign, which is still being mulled, will pay for a portion of domestic travel expenses only, according to tweets by the Japan Tourism Agency on Wednesday.

A summary of the government’s supplementary budget for fiscal 2020 showed it has set aside approximately ¥1.7tn ($15.8bn, £12.8bn) to finance the measures, which could include travel vouchers for up to a maximum of ¥20,000 per person, per stay, the Japan Times reported. The government is looking to encourage demand in the travel as well as restaurant industries starting late July, sources told the publication.

READ MORE: Lufthansa bailout and easing travel bans give airline stocks a boost

Only 2,900 foreign visitors entered Japan in April, a drop of more than 99.9% compared with the year earlier, recent government data has shown.

Prime minister Shinzo Abe lifted the state of emergency in Tokyo and four remaining prefectures on Monday (25 May), claiming victory for managing to keep total infections relatively low, at about 16,600 cases, and ending the restrictions nationwide.

Unlike strict lockdowns in other countries, Japan did not force businesses to close and some had reopened even before the emergency was lifted. However, the country’s economic growth plunged into recession in the first quarter as the pandemic diminished production, exports and spending.

READ MORE: Japan approves fresh $1.1 trillion stimulus to combat pandemic pain

Japan is extremely susceptible to the economic damage from the outbreak. It is dependent on trade with both China and the US – the country where the pandemic began and the country where it has hit hardest.

Travel, tourism and trade with those countries and others have faded.

Meanwhile, a region that is making a generous offer to foreign travelers is Sicily. Italy’s biggest island has said it will cover half of flight costs and a third of hotel expenses for travellers wishing to visit. The country is one of the hardest hit in Europe. Deaths from the pandemic climbed by 78 on Tuesday, against 92 the day before, the Civil Protection Agency said, while the daily tally of new cases increased to 397 from 300 on Monday (25 May). Italy’s death toll since the outbreak now stands at 32,955, and confirmed cases 230,555.