Many Japanese tourism businesses are concerned that the situation could drag on as the Lunar New Year holiday in February approaches. - The Japan News/ANN
TOKYO: The Chinese government’s advisory against travelling to Japan has severely blunted the growth in Chinese visitors to the nation, hurting sales at Japanese department stores and causing a flood of cancellations at hotels in tourist areas.
Many tourism businesses are concerned that the situation could drag on as the Lunar New Year holiday in February approaches.
“Many Chinese people have cancelled their bookings,” the operator of a hotel in Nakagyo Ward, Kyoto, said on Dec 17. “We’ve lowered our accommodation rates for the first time in a while.” The operator said room rates had been cut by about 10 per cent from December 2024.
Hotel rates in Kyoto had been steadily creeping upward since 2024, as the city experienced a rebound in tourism demand after the Covid-19 pandemic and capitalised on the 2025 Osaka-Kansai Expo. However, demand from Chinese visitors has plunged lately, forcing the hotel in Kyoto to cut its rates.
“If this situation continues until the Lunar New Year, the impact will become even more severe,” the hotel operator told The Yomiuri Shimbun.
Visitors from mainland China and Hong Kong together accounted for 28 per cent of all tourists to Japan from January to November in 2025.
During this period, the number of Chinese tourists coming to Japan surged by 37.5 per cent from the same period in 2024. However, that growth fell to just 3 per cent in November. Flights between China and Japan have been reduced and cruise ships are axing stops at Japanese ports. The prospects for an improvement in this situation remain murky.
The drop in Chinese tourists is also hurting the retail industry.
Duty-free sales at Takashimaya department stores between Dec 1 and 14 fell 9.8 per cent from the same period in 2024. The sales from Chinese customers declined by a hefty 23.9 per cent. Given that Chinese customers account for more than 40 per cent of tax-free sales, their disappearance from stores will have a massive impact on the company’s performance.
In response to the recent chill in Tokyo-Beijing relations, Sogo & Seibu has since November moved advertisements from China to other markets, including South-east Asia, Europe and the US.
Foreign tourism dried up during the Covid-19 pandemic, but Japan has since seen a steadily increasing number of visitors. Their spending habits have noticeably diversified.
Previously, many of these visitors indulged in shopping sprees, but nowadays more are seeking experiences that allow them to enjoy Japanese culture. The government aims to increase the annual number of foreign visitors to 60 million by 2030, with their spending to total 15 trillion yen (US$96 billion). As things stand, good progress is being made on attaining these targets.
Despite this, there remain major concerns, especially within the tourism industry, about the falling out between Japan and China.
According to a survey of businesses across the nation from Dec 5 to 9, conducted by Teikoku Databank, 42.8 per cent of respondents said the Chinese government’s advisory would have a “negative impact” on the Japanese economy.
This figure shot up to 53.8 per cent among companies in the shipping and warehousing industry, which includes passenger transport businesses and travel businesses. The figure was noticeably higher in this industry compared to other sectors.
When asked about the government’s response to the economic impact, especially on the tourism industry, at a press conference on Dec 17, Japanese Prime Minister Sanae Takaichi said, “We will strengthen a promotional campaign that will encourage people from a diverse range of countries to visit Japan.” Dr Takeshi Higashifukasawa, a senior economist at Mizuho Research & Technologies, agreed with that plan.
“The government should try to spread the risk, rather than relying on just one country,” he said. “It must try to increase spending by tourists and develop ways to attract wealthy visitors from many different areas.” - The Japan News/ANN
