What we know about Japan's domestic travel discount [UPDATE]

[UPDATE - December 13, 2022] - Japan’s tourism agency announced Tuesday that the second phase of the country’s domestic travel subsidy program will begin from January 10, 2023, following a decision to extend the program into the new year.

The subsidy for 2023 will be based on the current National Travel Discount with its implementation dependent on the situation regarding COVID-19 cases. 

Periods of availability for the subsidy will be set by prefectures based on budgets that have been allocated so far, with the program to be closed upon these budgets being exhausted.

The second phase of the subsidy will offer domestic travelers in Japan a reduced form of financial assistance - a maximum subsidy of 7,000 yen per night, down from 11,000 yen under the current National Travel Discount. It does not look like the new subsidy will be available over the New Year holiday period.  

Currently, travel packages that include accommodation and certain forms of transportation are subsidized under the National Travel Discount to 8,000 yen per night. This will be reduced to 5,000 yen from next year. 

The accompanying coupons currently valued at 3,000 yen per night on weekdays will be reduced to 2,000 yen. Weekend and national holiday coupons look set to stay at 1,000 yen per night. 

Next year’s subsidy will be reviewed and potentially adjusted to cope with any sudden fluctuations in travel demand. 

Japan’s current National Travel Discount will run until December 27, 2022 (including check out on December 28), according to the tourism agency.

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Japan’s latest domestic travel discount program will start in October, covering up to 40 percent of the cost of travel packages for destinations across the country. 

The National Travel Discount - 全国旅行割 / zenkoku ryokou wari - is scheduled to become available from October 11 and run through to late December this year, according to the Japan Tourism Agency. 

While there are still details about the program to be worked out, the key points of Japan’s latest domestic travel discount, aimed at stimulating travel and tourism following the coronavirus pandemic, as revealed by the tourism agency on September 26 are thus far:

A potential 40 percent discount off domestic travel packages.

Maximum discount of 8,000 yen per person per night on transportation and accommodation packages. (Transportation includes trains, buses, taxis, hire cars, flights, and ferries, among others.)

Maximum discount of 5,000 yen per person per night on packages booked without transportation, for example, when booking accommodation only. 

Coupons to the value of 3,000 yen per person per night for weekdays.

Coupons to the value of 1,000 yen per person per night for weekends. 

Travel subsidy will, in principle, be available in any destination prefecture. 

In order to qualify for the subsidy, travelers will be required to show proof of having received three doses of the COVID-19 vaccine, or be able to show proof of a negative result from a test for COVID-19. 

While the National Travel Discount will be made available for destinations nationwide, in order to encourage travel to more remote areas of Japan prefectural authorities will be given autonomy to opt out of, or determine the duration of, the program depending on the virus situation on the ground. 

In short, the National Travel Discount will afford travelers up to 11,000 yen in support per person per night, in the combination of a direct discount and coupons. 

Japan's National Travel Discount price examples

Local travel agencies are already providing examples of the kind of cost-performance the Japan's domestic travel discount program will offer. 

In one case, prospective travelers are given the example of a three-day / two-night package to Okinawa covering flight and accommodation on weekdays for 40,000 yen. 

Under Japan's National Travel Discount the traveler will be able to take advantage of a 40 percent discount (up to a maximum of 8,000 yen per person per night = 16,000 yen total) so will pay 24,000 yen.  

Staying for two weekday nights means the traveler will also be able to make use of two sets of coupons at a total value of 6,000 yen. 

Another example from a local travel agent presents the case of a hotel stay without transport. 

A one-night / two-day package is presented as 12,500 yen per person during weekdays. The 40 percent discount (up to a maximum of 5,000 yen per person per night) means that the traveler will bear the cost of 7,500 yen, after a 5,000 yen discount. The traveler will also receive coupons to the value of 3,000 yen (for the one night). 

For the sake of convenience maybe, the travel agent in this case has presented examples where the maximum discounts of 8,000 yen / 5,000 yen at 40 percent per person per night are available. 

Let’s say that the hotel package is a little more luxurious, around 40,000 yen for the room per night (with or without meals) which might be more in-keeping with lower-end prices for a 5-star hotel in Tokyo. 

40 percent of the total cost in this case is 16,000 yen. However, this is a package without transport so the maximum discount available to us is still just 5,000 yen per person per night. In which case then, it looks like the traveler will pay 35,000 yen for the room, if traveling solo. They may also be able to make use of the 3,000 yen in coupons at the fancy hotel bar, which would probably cover two drinks.

It’s more likely to be the case that two people will stay in the 40,000 yen-a-night hotel room. In which case, each guest will be afforded the 5,000 yen discount, taking the price of the room down to 30,000 yen, with 3,000 yen in coupons for each guest. A combined subsidy of 16,000 yen. 

If it’s two people staying in a budget hotel of, say, 8,000 yen per night per room, then Japan’s National Travel Discount will comfortably cover 40 percent of the cost: 4,000 yen per person subsidized to the tune of 1,600 yen means the outlay on the room per person will be 2,400 yen. A total outlay of 4,800 yen. Someway short of the maximum 10,000 yen discount available. 

Amidst all the fanfare and controversy that has surrounded the Japanese government’s original Go To Travel program and the prospect of the latest program (originally slated to start in July), another travel subsidy program has quietly remained in place. 

Along with the announcement of the new subsidy, authorities have extended the period of the current prefectural travel subsidy, which covers the traveler’s prefecture of residence as well as neighboring prefectures, until October 10 (until check-out the next day) this year. 

Time is ticking then for those travelers that want to take advantage of their prefectural subsidy before it ends. 

What is the difference between Japan's National Travel Discount and prefectural discount?

While the prefectural subsidy offers a potential discount of up to 50 percent off travel packages, this is limited to 5,000 yen per person per night with coupons worth 2,000 yen per person (per night in the case of hotel plans, or per bus tour, for example).

The discount of up to 50 percent seems to be something of a fluid one. In the case of some prefectures, for example, a hotel stay (per night) priced between 4,000 - 10,000 yen will be eligible for a 50 percent discount, while for stays priced over 10,000 yen the discount be fixed at 5,000 yen (per person per night).

In other prefectures, a stay priced at 6,000 - 7,999 yen per person per night will be eligible for a discount of 3,000 yen, for example. 

What does seem to be clear when comparing the two travel subsidies, is that if the traveler is looking to use one of these subsidies for a more extravagant travel splurge, then the new National Travel Discount would appear to offer the best value. 

How does Japan’s new travel discount program compare to Go To Travel?

It’s been clear for some time now that the new domestic travel subsidy program would not be another Go To Travel, which first launched in July 2020 as an early attempt to stimulate tourism nationwide following the outbreak of the novel coronavirus in Japan. 

While Go To Travel also covered (in principle) destinations across Japan, the subsidy rate on overnight-stay packages (including transportation) - combining flat discount and coupons - amounted to 50 percent. 

Breaking it down, 35 percent of the subsidy was a straight discount off the travel package with a maximum discount of 20,000 yen per person per night. The remaining 15 percent of the subsidy was given in the form of coupons limited to use at or around the destination.

For day trips the discount was limited to 10,000 yen per person.

The Go To Travel numbers didn’t add up, for tourism and accommodation options at the lower end of the budget scale at least.  

The potential savings available through Go To Travel were such that travelers were using the program almost exclusively for splurges on more luxury accommodations and packages. Tourism-related businesses that were really struggling to survive the pandemic were missing out.  

A quick look at the numbers this time around with Japan's new National Travel Discount and it appears to be less weighted in the favor of more luxury operations.  

Details of how the travelers can actually access Japan’s new domestic travel discounts are yet to be revealed. If it’s anything like its predecessor Go To Travel, the subsidies will be available at the point of making bookings with travel agents, tour operators, and hotels who have opted to be affiliated with the program. 

Issuing of the Go To Travel coupons got off to a rocky start, insofar as the coupons were still not ready in time for the program’s launch. When they did become available, the coupons came in either paper or digital form.   

87.81 million people made use of Go To Travel subsidies during its running period from July 22, 2020 through to December 28, 2020, amounting to some 539.9 billion yen in support given, according to tourism agency data.

With the National Travel Discount scheduled to start on October 11, the same day that Japan plans to remove its entry cap and other virus-related restrictions on overseas arrivals, time appears to be short for program organizers to have everything ready. 

Land, Infrastructure, Transport and Tourism Minister Tetsuo Saito was asked about the timing of the program's launch during a press conference following its announcement on Monday. 

“Tourism and transportation-related businesses are suffering greatly. This program will help to bring support to these people so I have asked the prime minister to implement the plan as soon as possible,” Saito told reporters.

“Now that the program is about to begin, we will do our utmost to make it a success.”

“Stay One More Night” campaign (平日にもう一泊)

Running in conjunction with the National Travel Discount the Saito also highlighted the implementation of a “Stay One More Night” campaign. Through this separate campaign the Japan Tourism Agency will work with private-sector businesses in tourism and transportation to develop travel products and services that encourage travel on weekdays as opposed to weekends. 

The agency plans to launch a website as a platform to deliver information about the campaign.

"Wakuwari" event discount

October 11 will also mark the start of the Ministry of Economy, Trade and Industry’s “Wakuwari” campaign which will offer a discount of 20 percent on entrance tickets to events and other entertainment venues. 

The campaign aims to stimulate demand for events related to culture, arts, and sports that suffered during the pandemic.  

Wakuwari is scheduled to run through January 2023, depending on the available budget.  

Are you looking forward to using Japan's National Travel Discount?  Do you worry about having access to the relevant information regarding the program?  Let us know in the comments!

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