Editorial: Questions abound over Japan's travel aid campaign to combat pandemic fallout

The government's request for people in Japan to refrain from traveling across prefectural borders has been lifted nationwide in light of the current status of novel coronavirus infections in the country. The government will launch the so-called "Go To Campaign" travel subsidy project as early as August to boost the domestic economy, which has suffered serious fallout from the pandemic.

The 1.7-trillion-yen (about $15.9 billion) project is primarily aimed at supporting the tourism sector. The enormous sum will be used to issue discount coupons that can be used at hotels and inns during domestic travel as well as at shopping at tourist destinations.

Demand for domestic tourism virtually evaporated due to the coronavirus pandemic, yet support for affected businesses is lagging. As the hotel and restaurant industries have seen a spate of bankruptcies and dismissals, urgent countermeasures are imperative. Tourism aid actually worked well in restoring areas affected by the 2016 Kumamoto earthquakes and other disasters.

However, stimulating tourism demand simultaneously nationwide is not without its problems. This is because it is difficult to decide the best timing for attracting tourists to certain areas while identifying infectious disease risks.

Tokyo and other prefectures are reporting new coronavirus cases every day. If tourists flock to certain regions in a certain space of time, the virus could spread among visitors and locals.

As a vigilant mood over a possible second wave of coronavirus infections prevails, consumers are likely to refrain from long-distance travel. It is questionable whether the Go To Campaign will have an economic impact commensurate with its cost.

To curb coronavirus transmission risks, meticulous arrangements are called for, such as luring travelers onto day trips to nearby locations, and keeping stays short for the time being.

Numerous local governments have already taken their own measures to entice tourists from their own local areas and neighboring prefectures with special coronavirus subsidies and other funds.

The state of coronavirus infections varies from one region to another. It would be realistic to start the campaign with regions that are ready to accept tourists, by leaving the initiative to each local body and its financial resources. This is a better option than insisting that the national government spearhead the campaign.

This lavish project is already riddled with problems, including the massive cost of farming out the administrative work. Up to 309.5 billion yen (about $2.9 billion), or about 20% of the project cost, is destined for system development and call centers.

It is essential to drastically cut back on the clerical costs. The economic benefits will not be felt unless the project funds are diverted to providing relief to tourist industry businesses as much as possible.

The government maintains that it estimated the clerical costs by referencing similar projects from the past. Yet if the government simply follows precedent and neglects efforts to reduce costs, there is no point in outsourcing the work to the private sector.

A third-party expert committee is to select the outsourcing contractors, with the outlines of the minutes for the screening meetings to be released. If some of the project work is determined inefficient, the government should fundamentally review it.