Article:
TOKYO (Kyodo) -- Japanese adults are planning to spend 65,157 yen ($600) on average during their summer holidays, down 2,914 yen from a year earlier and the lowest level on record, amid the novel coronavirus pandemic, a private survey showed Tuesday.
The amount was the lowest since Meiji Yasuda Life Insurance Co. started conducting the survey in 2006, in yet another indication of sluggish personal spending in the world's third-largest economy.
Ideas:
The project spending of 65,157 yen compared to 68,071 yen from a year earlier doesn't seem like much. What is needed is a more accurate look at the actual numbers of how many actually just spend that much. And what is the dispersion of difference from the mean, which might be a more accurate measure.
What might be more telling is to look at the demographics of who is actually spending how much. For example, most likely the rich in Japan, as anywhere in the world, are probably not much affected, as as such, will still take their summer vacations to the EU and or Hawaii.
While the average family most likely are the ones that are going to reduce their summer trips, or no trips at all and just spend some on locations near where they live.
It will be interesting to see how much Tokyo Disneyland is affected and much extra spending do families do besides just the cost of general admission tickets.
Article:
According to the survey, 45.6 percent of respondents said they would spend less this summer than the previous year, with 63.0 percent saying their spending would be curtailed as they would refrain from going out due to the pandemic.
The survey also showed that 32.9 percent would save money and that 26.2 percent have less income.
Asked how they would spend their summer holidays, 60.6 percent of the respondents said they will relax at home, up from 56.2 percent in 2019.
Only 8.5 percent said they plan to visit their hometowns to meet parents or relatives, down from 14.6 percent.
Meanwhile, 7.1 percent plan to travel in Japan, down from 13.4 percent, and only 0.5 percent plan to travel abroad, down from 3.6 percent in 2019.
Ideas:
It looks like the general trend is to spend less and not travel too far from home. Most likely this is the general trend globally.
The challenge, in Japan and globally, is the importance of continuing to wear masks and be vigilante, when you go out and remember the 3 C's.
People are scared they are worried, as no one in recent memory has seen anything like. And to be somewhat fair and honest, most governments had no idea how to deal with the situation other than a lockdown and the wearing of masks. And that might still, for now, be the only real alternatives.
However, as has been written about a lot, economies have been, well "destroyed" because of a lockdown.
Japan, it seemed for a while, had a very good and sensible plan with no real lockdown other than "suggesting" citizens stay away from large groups etc.
But now things seem to be, not so good. So maybe Japan needs to go back to a more of a semi-lockdown for a while.
Article:
Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance, said the results were not surprising because many companies had cut summer bonuses.
"We are watching whether the Go To Travel Campaign can curb a further deterioration in consumer sentiment," Kodama said, referring to the government's travel subsidy initiative.
Under the 1.35 trillion yen program to spur domestic tourism, the government will subsidize up to half of travel expenses, including accommodation and transport fees.
But economists cast doubt over its effectiveness after the government decided to exclude trips to and from Tokyo as well as residents of the capital from the initiative amid concern that the planned nationwide campaign could add to a resurgence of virus infections in Japan.
The online survey, conducted between June 15 and 18, received responses from 1,120 men and women aged between 20 and 59.
Ideas:
The Japanese government's plan to revitalize domestic tourism and spending is a good idea that might not work. Consumers from other parts of Japan are not going to travel to the Tokyo area as long as the virus cases continue to rise, and other prefectures and areas don't want tourists/consumers from the Tokyo or even Osaka area from traveling to their area because of the spike in the virus numbers.
Japan has to find an way to keep the economy open but at the same time ensure the safety of consumers, tourists and workers, who still need to go to work.
The idea of 70 percent of companies employees working from home might be a good start. And the companies rotate employees working from the company headquarters.
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