Japan Tourism Agency budgets creation of new travel styles including Workcation and promotion of DX as new policies in FY2021

The Japanese government accepted a FY2021 budget draft of 40.9 billion JPY, 40% less than the FY2020 budget, for Japan Tourism Agency (JTA). Including 3 billion JPY in the framework of the recovery actions in Tohoku area and 65 billion JPY in the FY2020 3rd supplimentary budget (except a budget of 1,031 billion JPY for Go To Travel initiative), however, the total is up 1.55 times to 106.2 billion JPY. 

In FY2021 starting April 1 2021, JTA is focusing on promotion of new travel styles, supports to innovative tourism businesses in local regions and promotion of digital transformation over the tourism services as its new policies. 

JTA has budgeted 504 million JPY to promote new travel styles including Workcation, Bleisure and satellite offices for companies or organizations. In addition, another 100 million JPY have been budgeted for development of new accommodation businesses in local regions, which may encourage Workcation. 

As a new policy, 800 million JPY have been budgeted for promotion of digital transformation for the tourism services, in which JTA will help private companies, public organizations or DMOs create innovative services, particularly longer-stay contents, with multiple uses of digital solutions. 

Promotional budgets in the inbound travel market largely reduce under the current deadly situation. JTA decreases a budget on environment developments by 51% to 20.8 billion JPY and a budget on creation of longer-stay contents by 25% to 17.8 billion JPY compared to FY2020. 

However, a FY2020 supplimentary budget of 5 billion JPY has been ensured for trials to accept well-managed small-groups from low risk countries and regions.

For a subsidy to Japan National Tourism Organization (JNTO) for its strategic promotion activities, a budget of 7.4 billion JPY has been ensured to enhance delivery of safe and security information and post-COVID-19 campaign developments in 10 Asian markets particularly. 

For the Japan’s domestic travel recovery initiative ‘Go To Travel,’ a FY2020 supplimentary budget of 1,031 billion JPY will be used to extend it to the end of June 2021, especially focusing on decentralization of travel demand to weekdays. 

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