Travelers will not have to shoulder cancellation fees caused by Tokyo's exclusion from the government's "Go To Travel" subsidy program, tourism minister Kazuyoshi Akaba announced Tuesday.
The government will compensate travel business operators if they suffer losses. It initially did not intend to make up for such cancellation fees, but shifted its stance following criticism from the public and the ruling and opposition parties.
Cancellation fees will be refunded for travel reservations made between July 10, when the government said the schedule for launching the "Go To Travel" program would be moved forward, and last Friday, when it announced that trips to and from Tokyo would not be covered by the program.
The government asked travel agencies, lodging facility operators and other entities not to seek cancellation fees from customers if they cancel their reservations.
People who have already paid cancellation fees will be refunded by travel agencies and others. Among the cancellation fees, the government will compensate for actual losses shouldered by business operators, such as food and air tickets.
"There were cases in which travel agencies faced actual losses and had to charge customers cancellation fees amid the current difficult situation," Akaba said at a press conference after a Cabinet meeting. "We couldn't sufficiently inform people of the details of cancellation fees."
On Friday, when Akaba announced that trips to and from Tokyo would not be part of the "Go To Travel" program, he said the government was "not considering" compensation. However, prospective travelers who had counted on the government subsidies canceled their reservations one after another.
The Land, Infrastructure, Transport and Tourism Ministry plans to use funds from the budget of about 1.3 trillion yen allocated for this program, which is aimed at supporting travel businesses. Akaba sought public understanding about using the budget to refund the cancellation fees, saying, "It's necessary spending to smoothly move forward with the program."
In June, the ministry said the travel subsidy program would be launched at "an early stage in August." Urged by the tourism industry, however, the ministry hastily announced on July 10 that it would move up the start to July 22.
Coronavirus infections later soared, particularly in Tokyo, fueling calls to review the program. The government then decided to exclude Tokyo.
The program offers discounts of up to 35% on travel expenses. The ministry will also distribute coupons for up to 15% of travel expenses, which can be used at souvenir shops and tourist facilities. The program was to start Wednesday July 22 in 46 prefectures other than Tokyo, but the government intends to consider taking similar steps for other prefectures if infection cases rise.
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