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The COVID-19 pandemic and domestic travel subsidies

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  • Matsuura, Toshiyuki
  • Saito, Hisamitsu

Abstract

The spread of the coronavirus disease 2019 (COVID-19) has significantly reduced tourism demands worldwide. Employing weekly data on tourist flows between Japanese prefectures, we examine the cost-effectiveness of domestic travel subsidies. Our results provide two implications for the literature. First, we identify the underlying mechanism of tourist flows during the pandemic. In contrast to infectious diseases that have only local effects, the COVID-19 pandemic has decreased tourism demand not only to, but also from, severely affected regions, deteriorating tourism businesses even in areas not severely affected by the disease. Second, we confirm the effectiveness of a price-discount strategy in mitigating economic damage to the accommodation sector caused by the pandemic.

Suggested Citation

  • Matsuura, Toshiyuki & Saito, Hisamitsu, 2022. "The COVID-19 pandemic and domestic travel subsidies," Annals of Tourism Research, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:anture:v:92:y:2022:i:c:s0160738321002048
    DOI: 10.1016/j.annals.2021.103326
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    Cited by:

    1. Guizzardi, Andrea & Ballestra, Luca Vincenzo & D'Innocenzo, Enzo, 2022. "Hotel dynamic pricing, stochastic demand and covid-19," Annals of Tourism Research, Elsevier, vol. 97(C).
    2. Pappas, Nikolaos, 2023. "Came and gone? A longitudinal study of the effects of COVID-19 on tourism purchasing intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    3. Yu, Ling & Zhao, Pengjun & Tang, Junqing & Pang, Liang, 2023. "Changes in tourist mobility after COVID-19 outbreaks," Annals of Tourism Research, Elsevier, vol. 98(C).
    4. Funashima, Yoshito & Hiraga, Kazuki, 2023. "Did the Japanese government’s travel subsidy increase the number of hotel guests and infection during the COVID-19 pandemic?," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 1005-1025.
    5. Okubo, Toshihiro, 2022. "Traveling and eating out during the COVID-19 pandemic: The Go To campaign policies in Japan," Japan and the World Economy, Elsevier, vol. 64(C).
    6. Boto-García, David, 2023. "Investigating the two-way relationship between mobility flows and COVID-19 cases," Economic Modelling, Elsevier, vol. 118(C).
    7. Willem Thorbecke, 2023. "Japanese Economic Performance after the Pandemic: A Sectoral Analysis," JRFM, MDPI, vol. 16(5), pages 1-17, May.
    8. Wangbing Liang & Zhao Li & Yinggang Bao & Bing Xia, 2022. "Risk Perception of COVID-19 as a Cause of Minority Ethnic Community Tourism Practitioners’ Willingness to Change Livelihood Strategies: A Case Study in Gansu Based on Cognitive-Experiential Self-Theor," IJERPH, MDPI, vol. 20(1), pages 1-19, December.

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