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Lacking Powers in Virus Fight, Japan’s Paying Businesses to Shut

Published 07/08/2020, 05:00 PM
Updated 07/08/2020, 06:27 PM
© Bloomberg. A pedestrian wearing a protective mask walks past an izakaya bar in the Shimbashi district of Tokyo, Japan, Friday on May 29, 2020. Small clusters of coronavirus cases have emerged in several locations in Japan, including the capital, in its first week since a state of emergency was lifted nationwide, sparking concern among authorities.

(Bloomberg) -- Japan has begun requesting some nightlife establishments to suspend their businesses in return for monetary compensation, signaling the nation is stepping up its fight against coronavirus outbreaks amid growing public outcry.

Kagoshima prefecture in southern Japan, where more than 80 infections have been traced to one cabaret club, will pay up to 300,000 yen ($2,791) for night time entertainment establishments to close for two weeks starting Wednesday. In northwest Tokyo, Toshima Ward has asked the capital for financial assistance to pay host clubs that agree to suspend their operation.

That’s a turnaround from when many such businesses weren’t able to claim subsidies during the state of emergency. Japan has no legal power to force businesses to close, which meant that some of these nighttime establishments stayed open throughout the country’s voluntary shutdown during April and May. With infections now increasing from the network of clubs, pressure is growing for a way to halt the virus’s spread.

“We’d like to use Toshima Ward’s measures as a model case and use the results to create compensation structures for other wards and cities, many of which are also worried about this issue,” Tokyo Governor Yuriko Koike said Tuesday, national broadcaster NHK reported.

Read more: As Tokyo Reopens Nightlife, Clubs Become Virus Danger Zones (1)

Approaches to mitigating the virus have diverged around the world as countries deal with new flare-ups on a case-by-case basis at a local level. In the U.S., businesses and social activities are resuming even as states record daily infection numbers in the tens of thousands. In Australia, Melbourne went under stay-at-home orders again this week after recording new daily cases of less than 200 but were a daily record for the state of Victoria.

Japan, which is almost fully reopened for business after a state of emergency in April and May, has refrained from asking for broad shop closures again despite a recent increase in case numbers. The number of new confirmed infections has exceeded 100 in Tokyo for six days in a row, stoking worry that the country may be heading toward another wave of infections. The city broke the streak on Wednesday, with 75 cases being reported.

Officials have maintained that the country can continue to reopen as its medical system is not overwhelmed and most new cases have been traceable. Japan will allow outdoor events of up to 5,000 people to take place from Friday. The government is also slated to begin a travel campaign next month that would give stipends to residents to travel domestically in order to spur regional tourism.

Most of the confirmed infections in recent weeks have been people in their 20s and 30s, who experience lighter symptoms and may not require hospitalization. Many of the new numbers are also from mass testing of night club workers and guests. The initial focus of night club cluster infections was in Shinjuku and its Kabukicho red light district. Since late June, many cases have been traced to host clubs in the bustling Ikebukuro district of Toshima Ward, the Mainichi newspaper reported.

Read more: Hundreds of Cases, but No Lockdown: What’s Changed in Japan?

“This is a good development. With the monetary support, many clubs could choose to close,” said Kaori Kohga, the head of the industry association representing hostesses and clubs. “One point of concern is that the money may only go to the business management, not the individual hosts.”

With many of the hosts and hostesses that work at the clubs living paycheck to paycheck, it would be better if initiatives like the Shinjuku Ward -- which began giving its residents who were infected with the virus 100,000 yen in support funds -- and Toshima’s were combined to support the closure of the clubs, Kohga said.

©2020 Bloomberg L.P.

© Bloomberg. A pedestrian wearing a protective mask walks past an izakaya bar in the Shimbashi district of Tokyo, Japan, Friday on May 29, 2020. Small clusters of coronavirus cases have emerged in several locations in Japan, including the capital, in its first week since a state of emergency was lifted nationwide, sparking concern among authorities.

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