In December 2020, Japan formulated the Policy Plan to Prevent the Spread of Infection and Restore Demand for Tourism, focusing on the post-pandemic period. The plan includes improvements to productivity and the diversification of demand, both of which have been areas of concern for some time.
The main short-term focus is on stimulating demand for domestic travel (see box below). Key areas set out in the Policy Plan include:
The revival of hotels, traditional inns and tourist areas: a subsidy and expanded financing system, specifically for restoring tourist facilities and creating high-quality environments based on regions’ regeneration plans.
Product development: provision of a richer product to attract domestic and international tourists, enriching tourism resources using digital technology, creating tourist sites that are profitable and attractive and enabling visitors to gain a deeper experience in local areas. This involves collaboration with tourism operators and destination management organisations, together with a wide range of stakeholders such as transport businesses, the fishing industry, agriculture, and local suppliers.
Popularisation of ‘workcations’: creating travel opportunities and equalising travel demand by promoting workcations (work and vacation), bleisure (business and leisure), and the use of satellite offices by implementing model projects that improve the environment for both companies and the community.
While the number of tourism business closures increased significantly, the number of bankruptcies in the accommodation and travel sectors was fewer than during the global financial crisis (2008‑09) and the Great East Japan Earthquake (2011) due to government support measures.
Additional measures for the revival of international business tourism include introducing new technology and knowledge necessary for hosting hybrid meetings, incentive, conference and events (MICE) events that combine face-to-face and online participation and the acquisition of international accreditation for infectious disease control at MICE-related facilities.
To address the issue of low productivity in the tourism sector (relative to other sectors), recovery plans involve initiatives to increase revenue through value-added services and introduce new demand while reducing the costs of digital transformation technologies. The aim is to have a stronger tourism sector with improved labour productivity and wages.
Various initiatives will be promoted in anticipation of the post-COVID era to reconstruct a tourism sector that supports local economies. Such initiatives include increasing repeat visitors and length of stay and creating a more profitable product.
