Weekly Update: News on Japan & the Netherlands – Week 1, 2021

Tokyo Governor Koike Yuriko said, “A state of emergency declaration will lead to stepped up measures. I hope they will be more effective.” The four governors will ask people to refrain from non-essential outings after 8 p.m. They will also request that bars and restaurants close by that time.

But a state of emergency is less rigid in Japan than in many western countries. It has so far relied on voluntary closures, rather than strict lockdowns. Suga says he will submit a legal revision to the Diet that would allow penalties for those who do not comply.

With the number of seriously ill patients surging, governors around the capital are warning the health care system could collapse. Frontline medical workers say they hope the state of emergency will encourage people to be more alert.

He also said that response to the new variant was the same as to the original COVID-19 virus and called for people to wash hands, put masks on, and to hold New Year’s celebration “quietly.”

In an effort to prevent the pandemic from further straining hospitals’ ability to treat COVID-19 patients during the New Year holidays, when there are usually fewer medical personnel on duty, the government also expanded Monday its suspension of its Go To Travel tourism promotion campaign across the country through 11 January.

The scheme, subsidizing up to half of people’s travel expenses, had already been halted for trips to Tokyo, Nagoya, Osaka, Hiroshima and Sapporo, which have seen a notable increase in infections. It was originally launched in July to help the country’s tourism industry hit hard by the pandemic.

The nationwide halt of the campaign is estimated to cause a loss of 318.7 billion yen (€2.52 billion) in potential spending through 3 January, with the nation observing a 73% drop in the number of travelers from last year due to the pandemic, according to JTB Tourism Research and Consulting Co.

Adventure Inc., the operator of travel reservation website Skyticket, said about 4,000 of the roughly 6,000 reservations made for the suspended period have been canceled since 14 December. The government will cover 50% of the losses sustained by travel agencies and hotel operators.

The emperor and Empress Masako have a 19-year-old daughter, Princess Aiko. But the 1947 Imperial House Law states that only males in the paternal line can ascend the Chrysanthemum Throne.

In a Kyodo News poll conducted last year, the public has shown support for women to ascend the throne.

The Olympics and Paralympics, however, were postponed in March due to the pandemic, just two days before Japan’s leg of the games’ torch relay was scheduled to start in Fukushima Prefecture.

Now, the Japanese government is urging host towns to implement strict anti-virus measures to protect the health of athletes. While cultural exchanges have been a pillar of the initiative, it has said they should not come into close contact with local residents, recommending interactions take place online or after the games close.

Each host town is required by the central government to compile COVID-19 countermeasure guidelines that must be followed by local authorities and overseas visitors, including how to provide transport for athletes and take anti-virus steps at training facilities.

With the Tokyo Olympics set to open in less than seven months, the Japanese capital and other areas of the country are facing many challenges. In addition to seeing record numbers of infections, a big headache for Tokyo officials is that they have been struggling to build momentum for the Olympics amid public concern over safety and ballooning costs.

The measure, which will take effect from Monday through January, was announced following Japan’s detection of a new and seemingly more contagious variant of the virus.

Among other measures to tighten its borders, Japan will require its nationals and foreign residents to quarantine for two weeks, show proof of a negative coronavirus test result within 72 hours of departure for the country and undergo another test upon arrival.

Children are not yet on the vaccination schedule. This is because there are no clinical data yet on the vaccine in children: they have not yet been tested. If research shows that the British mutation of the corona virus does give cause to do so, it will be looked at again.

Municipal health service GGD announced that it had scheduled the first 10,000 appointments already within hours after a special phone number opened up on Monday. Callcenter workers scheduled one coronavirus vaccination appointment every two seconds during the first 6.5 hours the hotline was open.

Around 15 different rule changes will affect the wallets of most self-employed workers and business owners. Those taking advantage of the self-employed tax credit will see the value of that deduction fall by nearly 400 euros, but those paying corporate income tax will pay a lower base rate over more profit before the higher 25% rate applies.

Justice, Security and Defense

Once the new trade agreement between the United Kingdom and the European Union takes affect, replacing the Brexit transition, Dutch citizens and residents could face a litany of new rules regarding trade and travel between the two countries. Aside from that, expensive roaming charges could be placed on Dutch mobile phone and data subscriptions when in the UK. New European rules on drone use will also begin in the Netherlands in January.

Family

Subsidies parents receive for childcare will rise for most families. Public broadcasters face two significant changes to their advertising capabilities, including what they can and cannot show to children. Alimony and child support payments are set to rise.

Health, Care and Sport

4 of the 6 rule changes in this category affect the provisions of care under the basic health insurance package. It includes expansive care for people recovering from COVID-19, more coverage for people with chronic illnesses and permanent disabilities, and extra physiotherapy for people with COPD. Those who recovered from cancer will also have better access to death and funeral insurance.

Housing and Living Environment

A half-dozen new rules will give many first-time home buyers an exemption to the 2% transfer tax on property, while an expansion to the NHG mortgage guarantee will make home purchases easier for others. Many home and office owners will also need to get an energy label to estimate how much energy their properties use.

Traffic and Transportation

A 12% increase on the tax airline passengers pay when flying from Dutch airports, a change in the tax scheme on car purchases, and a tax discount for those buying an electric car with solar panels are among the seven different changes coming into effect next year. Classic car fans with a love for cars made before 1971 will no longer have to get their vehicles inspected.

The situation is dire for many companies in the events sector, says Riemer Rijpkema, spokesperson for the umbrella organization Eventplatform and director of the trade association CLCVECTA. “The first quarter is already lost, and the second quarter will also be very difficult,” he says. Many entrepreneurs have to rely on their reserves “on the assumption that the tide would turn sooner.”

The government should pay attention to these types of surveys, argues BNR-economist Han de Jong. “The ministers and Prime Minister always say that the support package must reflect the gravity of the corona measures.” But according to Han de Jong, the question is whether enough oxygen is being pumped into the lungs of these companies. This survey suggests that in some respects, that is not the case. “This is reason to take a closer look at the support measures, especially with regard to lending,” he argues.

The industry wants to hear from the cabinet where it stands by 1 February at the latest. Jansen fears that otherwise there will not be enough time to properly organize the events.

“We cannot afford to miss a second summer of events, because soon an even greater proportion of the 100,000 people will be on the street, and an industry that generates a turnover of 7.4 billion euros will be on its knees.”

In Germany, Finance Minister Olaf Scholz called on the event industry a month ago to start planning events for the second half of 2021. If events are still canceled due to the coronavirus, the German state will act as guarantor. About 2.5 billion euros has been earmarked for this.