Chinese Travel Advisory Blunts Growth in Japanese Tourism Sector

Chinese Travel Advisory Impacts Japanese Tourism

A series of travel advisories issued by the Chinese government has led to a notable slowdown in the growth of Chinese visitors to Japan, causing cancellations in hotels and affecting sales at Japanese retail establishments. The advisories, which began in August 2023 following the release of treated wastewater from the Fukushima Daiichi nuclear power plant, were further reinforced in November and December 2025, citing a 'deteriorating security environment' for Chinese nationals and 'provocative remarks' by Japanese Prime Minister Sanae Takaichi regarding Taiwan.

Significant Drop in Visitor Growth and Economic Repercussions

The impact on Chinese tourist numbers has been substantial. The growth rate of Chinese tourists visiting Japan in November 2025 was a mere 3.0% year-on-year, a sharp decrease from the 22.8% growth recorded in October. While Chinese visitors still constituted 28% of all tourists to Japan between January and November 2025, with an overall increase of 37.5% from 2024, the recent slowdown is a cause for concern.

The economic fallout is evident across various sectors. Hotels in popular tourist destinations, such as Kyoto, have reported numerous cancellations and have been forced to lower accommodation rates by approximately 10%. The retail industry is also feeling the pinch; Takashimaya department stores saw a 9.8% decline in duty-free sales between December 1 and 14, with sales from Chinese customers plummeting by 23.9%. Chinese shoppers typically account for over 40% of tax-free sales. Furthermore, flights between China and Japan have been reduced, and some cruise lines have canceled stops at Japanese ports.

Broader Economic Concerns and Industry Response

A survey conducted by Teikoku Databank, Ltd. between December 5 and 9 revealed that 42.8% of Japanese businesses anticipate a 'negative impact' on the economy due to the Chinese advisory, a figure that rose to 53.8% within the shipping and warehousing industries. Analysts at Nomura Research Institute have estimated a potential annual loss of approximately 2.2 trillion yen (around $14.23 billion USD) if the Chinese travel boycott continues, which could lead to a 0.36% reduction in Japan's GDP. This situation has also affected tourism-related Japanese stocks, including major department store operators like Isetan Mitsukoshi and entertainment companies such as Oriental Land (operator of Tokyo Disneyland).

Overall Tourism Resilience Amidst Challenges

Despite the significant decline in Chinese visitors, Japan's overall inbound tourism sector has demonstrated resilience. The country recorded a record high of over 39 million foreign visitors by November 2025, surpassing the previous annual record of 36.87 million set in 2024. This growth is largely attributed to a post-pandemic recovery, the favorable exchange rate of the weaker yen, and successful efforts to diversify visitor source markets beyond China. However, the long-term implications of the strained diplomatic relations and the absence of a significant portion of Chinese tourists remain a concern for many Japanese businesses heavily reliant on their spending.