Japanese tourism and retail businesses are demonstrating remarkable resilience despite recent travel warnings issued by China amid growing diplomatic tensions between the two Asian nations.
Business as Usual in Tokyo
Shiina Ito, manager of a jewellery shop in Tokyo's traditional Asakusa district, has noticed fewer Chinese customers since Beijing issued the travel advisory. However, she remains unconcerned about the potential economic impact.
"Since there are fewer Chinese customers, it's become a bit easier for Japanese shoppers to visit, so our sales haven't really dropped," Ito told AFP. Chinese visitors typically constitute half of her clientele in the popular tourist district where crowds normally fill shop-lined alleys.
The diplomatic strain emerged after Japanese Prime Minister Sanae Takaichi suggested on November 7 that Tokyo could intervene militarily if Taiwan faced attack. China, which considers Taiwan part of its territory, responded by advising citizens to avoid travel to Japan.
Mixed Reactions Across Sectors
Yuki Yamamoto, manager of an Instagram-famous udon noodle restaurant in Tokyo's upscale Ginza district, reported minimal immediate impact on his business. "I don't think there's been any sudden, dramatic change," he said, despite Chinese diners normally making up approximately half of his customers.
However, the situation appears different for accommodation providers. Keiko Takeuchi, who operates the Gamagori Hotel in central Japan, revealed that "cancellations from travel agencies in China are coming one after another" with Chinese nationals typically representing 50-60% of her customers.
"I hope the situation calms down quickly, but it seems it will take time," she fretted, highlighting the varying impact across different sectors of Japan's tourism industry.
The Economic Significance of Chinese Tourism
China represents the largest source of tourists to Japan, with nearly 7.5 million visitors recorded in the first nine months of 2025 alone. This figure accounts for approximately a quarter of all foreign tourists visiting the archipelago nation.
The economic contribution of Chinese tourists is substantial. According to the Japan National Tourism Organization, Chinese visitors spent an average of 22% more than other international tourists in 2024. During the third quarter of 2025, Chinese tourists splashed out the equivalent of $3.7 billion while visiting Japan, attracted by the weak yen that makes shopping more affordable.
Many Japanese businesses have adapted to accommodate Chinese visitors through various measures including:
- Mandarin-speaking assistants in hotels, designer boutiques, and pharmacies
- Chinese language signs in department stores
- Services tailored to Chinese payment preferences
Government and Industry Response
Japan's Transport Minister Yasushi Kaneko downplayed concerns, noting that "the issue was not something to get all worked up about" given increasing arrivals from other countries.
However, Kimi Onoda, Japan's minister of economic security, issued a warning about "relying too heavily on a country that resorts to economic coercion whenever it is displeased." She emphasized that such dependence "poses risks not only to supply chains but also to tourism."
The travel advisory has particularly affected organized group travel from China. Wu Weiguo, manager of a Shanghai travel agency, reported that 90% of his clients requested refunds for planned Japan itineraries. However, organized tours now represent only about 12% of Chinese visitors to Japan, down significantly from 43% in 2015.
Despite the current tensions, industry professionals remain optimistic about long-term prospects. Wu noted that Chinese people continue to dream of visiting Japan, citing high-quality service and reasonably priced shopping as key attractions. "Chinese people will continue to want to visit Japan," he confidently predicted.
