TOKYO: Hotels and retail businesses across Japan are feeling the impact of a sharp slowdown in Chinese tourist arrivals following an advisory by the Chinese government against travel to Japan, leading to booking cancellations and weaker sales, local media reported.
Tourism operators fear the situation could persist as the Lunar New Year holiday period in February approaches, a peak season for inbound travel from China.
A hotel operator in Nakagyo Ward, Kyoto, said many Chinese guests had cancelled their reservations, prompting the hotel to lower room rates by about 10 per cent from December 2024 levels. It marked the first rate cut in some time, the operator said on Dec 17.
Kyoto hotel prices had been on a steady upward trend since 2024 amid a post-pandemic tourism rebound and heightened interest linked to the 2025 Osaka-Kansai Expo. However, a recent plunge in demand from Chinese visitors has forced some operators to revise prices downward.
“If this situation continues until the Lunar New Year, the impact will become even more severe,” the operator told The Yomiuri Shimbun.
Visitors from mainland China and Hong Kong accounted for about 28 per cent of all tourists to Japan from January to November 2025. While the number of Chinese visitors during that period surged 37.5 per cent year-on-year, growth slowed sharply to just 3 per cent in November.
Air links between China and Japan have been reduced, while some cruise operators have cancelled port calls in Japan, further clouding the outlook for a near-term recovery.
The retail sector has also been affected. Takashimaya reported that duty-free sales at its department stores from Dec 1 to 14 fell 9.8 per cent from the same period last year, with sales to Chinese customers plunging 23.9 per cent. Chinese shoppers account for more than 40 per cent of the group’s tax-free sales.
Amid strained Tokyo-Beijing ties, Sogo & Seibu has since November shifted its overseas promotional efforts from China to other markets, including Southeast Asia, Europe and the United States.
Japan’s inbound tourism has recovered steadily since the COVID-19 pandemic, with visitor spending patterns becoming more diverse. While shopping remains important, more tourists are now seeking cultural and experiential travel.
The Japanese government aims to attract 60 million foreign visitors annually by 2030, with tourism spending reaching 15 trillion yen (US$96 billion). Progress towards these targets has been steady so far.
Nevertheless, concerns remain within the tourism industry over the cooling of Japan-China relations. A survey conducted nationwide by Teikoku Databank from Dec 5 to 9 found that 42.8 per cent of businesses expected the Chinese travel advisory to hurt the Japanese economy.
The figure rose to 53.8 per cent among companies in the shipping and warehousing sector, which includes passenger transport and travel-related businesses.
Asked about the government’s response at a press conference on Dec 17, Prime Minister Sanae Takaichi said Japan would strengthen promotional campaigns to attract visitors from a wider range of countries.
Supporting the move, Mizuho Research & Technologies senior economist Dr Takeshi Higashifukasawa said Japan should reduce its reliance on a single market.
“The government should spread the risk by attracting tourists from diverse regions and focus on increasing spending, including by appealing to wealthier travellers,” he said.
