China’s travel warning sparks sharp decline in Japanese tourism sector

Tokyo-based tour operator East Japan International Travel Service has seen a staggering 80% drop in bookings for the remainder of the year following China’s recent advisory urging its citizens not to travel to Japan, industry sources stated.

The small firm, which primarily organizes group tours for Chinese clients, is facing the immediate economic impact of a diplomatic dispute that threatens Japan’s broader tourism industry, Reuters reports.

The travel advisory came in response to remarks by Japanese Prime Minister Sanae Takaichi regarding Taiwan, the democratically governed island claimed by China. The warning has triggered widespread flight cancellations and sent tourism-related stocks in Japan tumbling.

“This is a huge loss for us,” said Yu Jinxin, vice president of East Japan International Travel Service, reflecting the frustration of operators heavily reliant on Chinese travelers.

Tourism accounts for roughly 7% of Japan’s gross domestic product, according to the World Travel & Tourism Council, and has been a major engine of growth in recent years. Visitors from mainland China and Hong Kong make up around one-fifth of all arrivals, highlighting the sector’s dependence on the region. Nomura Research Institute estimates the boycott could result in an annual loss of approximately 2.2 trillion yen ($14.23 billion).

More than ten Chinese airlines have already offered refunds on Japan-bound routes through December 31, with industry analysts estimating around 500,000 tickets have been canceled so far.

Takaichi’s statements to Japanese lawmakers—suggesting that a Chinese attack on Taiwan threatening Japan’s survival could provoke a military response—sparked the most serious diplomatic dispute between the two nations in years. In response, a Chinese diplomat in Japan and Chinese state media launched a series of vitriolic attacks against the prime minister. Tokyo, in turn, advised Japanese citizens in China to exercise heightened safety precautions and avoid crowded areas.

Beijing has demanded a retraction of Takaichi’s remarks, but Tokyo maintains that her comments align with official government policy, indicating no immediate resolution is in sight.

The dispute has also affected cultural ties: China has suspended screenings of upcoming Japanese films, and Japanese celebrities popular in China have made public statements to pre-empt potential backlash. “China is like my second homeland to me and all my friends in China are my cherished family—I will always support One China,” Japanese singer MARiA wrote on Weibo.

Yu noted that her company has weathered previous flare-ups, such as Japan’s 2012 decision to nationalize disputed islands, which sparked mass anti-Japan protests in China. However, she warned that a prolonged crisis could be devastating. “If this lasts for one or two months, we can manage, but if the situation continues to worsen, it will obviously have a major impact on our business,” she said.

By Vafa Guliyeva