Japan drafts Kumamoto quake aid package, plans travel discounts

Japan is preparing to launch a comprehensive aid package by the end of August to support regions devastated by a recent earthquake in the southwest. Sources close to the matter revealed that the plan includes offering travel discounts to encourage tourism in the affected areas, aiming to revitalize the local economy.

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The draft package also includes subsidies to restore quake-damaged railway infrastructure and aid to repair wells that many households in hard-hit Kumamoto Prefecture rely on for drinking water.

Beyond tourism, the package will extend financial assistance to residents and businesses grappling with the aftermath of the disaster. Subsidies are earmarked for the restoration of critical infrastructure, including railway lines and essential water wells that many households in the hard-hit Kumamoto Prefecture depend on. Similar support programs were previously implemented following major quakes in 2016 and 2024.

To bolster the tourism industry, which experienced significant cancellations, the government intends to cover a portion of lodging and travel expenses for visitors to Kumamoto and other prefectures on the Kyushu island. Specific details regarding eligible locations, discount rates, and program duration will be determined by the Ministry of Land, Infrastructure, Transport and Tourism.

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To support the local tourism industry, which saw a wave of cancellations particularly in Kumamoto, the government will cover part of lodging and other travel costs for tourists visiting Kumamoto and other prefectures on the south-western main island of Kyushu, according to the draft plan.

Prime Minister Sanae Takaichi has pledged to designate the July 28 quake as a "disaster of extreme severity," a classification that will enable local governments to receive higher reconstruction subsidies. The government also plans to allocate over 20 billion yen (approximately $160 million) from reserve funds. Additionally, measures are being considered to aid semiconductor-related companies operating in Kumamoto, potentially including purchasing their outstanding debt.

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Prime Minister Sanae Takaichi said earlier in August that her government will designate the July 28 quake as a “disaster of extreme severity”, enabling affected local governments to receive higher subsidies for reconstruction work. She also pledged to tap over 20 billion yen (S$160 million) in reserve funds.