The European tourism hotspots, given the increasing risk of suddenly imposed quarantine rules that could wreck holidays, doubt whether to persuade tourists to visits again their sites, hotels, accommodations, places and landscapes. To help the industry indirectly, with handouts for airlines, subsidies for airports and other infrastructure, or lower value-added tax (VAT) rates for hotels and restaurants has not proved satisfactory. Rather, handing visitors cash directly or spending vouchers seems decisively a more profitable fiscal strategy, so much so that the idea is quickly catching on. In June, for example, Italy unveiled a “holiday bonus” scheme costing €2.4bn, under which Italian families on low incomes receive up to €500 towards domestic holidays. Yet, Italy is not the only case.
How other countries are paying people to go on holiday - To lure both foreigners and mainlanders, many government recently approved spending on vouchers or tax credits, redeemable for accommodation, guided tours, museum tickets and more. Particularly, voucher schemes are being implemented in Iceland, South Korea, Taiwan and Thailand. In addition, tackling wary travellers’ fears head-on, Cyprus has even promised to meet the quarantine, health-care and holiday costs of any visitor who contracts the virus. Furthermore, is crucial to point out as to avoid subsidizing the rich, schemes’ eligibility can be limited. In Italy, for example, only households with incomes of under €40,000 a year qualify, while in South Korea the government is paying extra “vacation bonuses” only to employees of small firms who take time off, in this way excluding from the fiscal help taxpayers with more generous salaries and personal incomes.
The Japan on top of tourists aids fiscal package – However, the most ambitious and costly of all these fiscal plans is Japan’s “Go To Travel”, which was launched on July 22nd. Basically, the government will pay for discounts of up to half the cost of trips within the country, reimbursing hotels and travel agents at a potential expense of ¥1.3trn ($12.6bn).
Stefano Latini