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(Bloomberg) — As the coronavirus resurges in Japan, politicians and experts are growing more divided on the impact that a subsidy program encouraging people to travel is having on the spread of Covid-19.
The popular “Go To Travel” campaign, which discounts trips to boost regions hit hardest by a lack of tourists, is one of the government’s most prized projects for spurring the economy, and has been heavily backed by Prime Minister Yoshihide Suga.
Sapporo TV Tower in Sapporo. Japan has removed the Hokkaido capital from a domestic travel promotion campaign.
Photographer: Kentaro Takahashi/Bloomberg
But as the country tackles its largest surge in the virus yet, a debate has erupted over whether the program is a main cause for the rise in infections. The risk is that the campaign could be doing more long-term harm than good in a country attempting to balance growing the economy and controlling the pandemic.
On Friday, Suga urged travelers to refrain from using the program for trips originating in Sapporo and Osaka, areas badly hit by the current virus wave. He had earlier scaled back the program but only for travelers headed to these hot spots from other parts of Japan.
The decision followed a record 570 new cases in Tokyo on Friday. As the richest and most populous region in the country, Tokyo’s participation in the program is essential to its success.
The “Go To Travel” campaign is just one of multiple subsidies promoted to kickstart the economy, with “Go To Eat” and “Go To Event” programs offering restaurant and event discounts. Critical commentary and opponents on social media have mocked the programs as “Go To Hospital” or “Go To Heaven.”
National leaders have been reluctant to scrap the stimulus that has been hailed for injecting trillions of yen into the economy. There have been only 197 infections among the more than 40 million people who have taken part in the Go To program, Chief Cabinet Secretary Katsunobu Kato said Thursday, and the government hasn’t received reports of hotel workers or others being infected by travelers, he said.
Earlier in the week Suga had denied that Go To Travel was helping fuel the outbreak.
“There is no evidence that the travel program is the main cause” of the surge, Suga said at a parliamentary session on Wednesday, telling the opposition leader, “If you have a better idea, I’m open to hearing it.”
The campaign had been crossing wires with local governments as they begin to implement fresh restrictions to stem the rising number of severe Covid-19 cases in Japan. Tokyo’s governor is urging residents to avoid unnecessary outings, and the government is raising the specter of another state of emergency.
Suga helped launch the program during the summer surge amid great public concern. In an August interview, he said one reason for the subsidies is to keep hotels and inns afloat to reach the government’s target of attracting 60 million foreign tourists by 2030.
Yoshihide Suga at the lower house of the parliament last month.
Photographer: Kiyoshi Ota/Bloomberg
The impact of the subsidies is significant. Nomura Research Institute economist Takahide Kiuchi said halting the program for a year would shave 0.39 percentage point off GDP by eliminating some 2.17 trillion yen ($20.8 billion) in consumer spending.
“Suga is passionate about the program and doesn’t want to cancel it,” Kiuchi said. “But if the government wants to help the tourism sector, it should give money to people in the sector directly.”
Despite the suspensions, discussions are under way to extend Go To through May 2021. About 51% of those surveyed in an Asahi poll disagreed with such an extension, while 37% approve. The poll, taken Nov. 14-15, showed that support for the program was higher in Tokyo but lower in regions such as Hokkaido.
The campaign has also re-ignited a familiar butting of heads on the pandemic strategy between the national government and Tokyo authorities.
“It is obvious that positive diagnoses are increasing due to the movement of people,” Tokyo Governor Yuriko Koike said earlier this week. Nonetheless, she refrained from asking that Tokyo be removed from the program, arguing the national government should make a decision.
Other regional leaders have pushed back on efforts to rein in the campaign. Soichiro Takashima, the mayor of the southern city of Fukuoka, wrote that he didn’t see a link. “We can’t see any such correlation in Fukuoka.”
But while the debate continues, Hiroshi Nishiura, a mathematical modeler of infectious diseases at Kyoto University, said a caution-first approach may be appropriate.
“Of course it would be better to have a decision based on causal reasoning, but to show clear evidence that ‘Go To Travel’ caused a large infection after the fact would be too late,” Nishiura wrote. “During a phase of exponential growth, it may be necessary to work based off precautionary principles.”
(Updates with Suga comments in fourth paragraph)
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