In November last year, Japanese Prime Minister Sanae Takashi stated that if Taiwan is in trouble, it means Japan is also in trouble and cannot stand by. This statement angered the Chinese Communist Party, which subsequently issued travel warnings, advising Chinese people not to travel to Japan. As a result, many Chinese tourists canceled their trips to Japan. Over six months have passed, and there is no sign of easing tensions between the two countries.
The deteriorating relations between the two countries have negatively impacted businesses. Over the past decade, Chinese tourists flocked to Japan, crazily buying high-end electronics, cosmetics, and other luxury goods, allowing many businesses to profit from Chinese tourists.
Especially for Laox Global Retailing (30% owned by Chinese Suning.com), a prominent watch and jewelry store in Japan, where Chinese tourists once accounted for 90% of the company’s sales, this proportion has now dropped to less than 30% since the deterioration of China-Japan relations.
Gakutyu Kin, the general manager of Laox Global Retailing, told Nikkei News that in this situation, the company had to adjust its products to be more appealing to a broader customer base and focus on high-end products such as watches and gold at their new Tokyo Ginza store, aiming to attract customers from different countries.
According to data from the Japan National Tourism Organization (JNTO), in April alone this year, the number of Chinese tourists decreased by 56.8% to 330,700 people compared to the previous year. The Japan Tourism Agency’s data shows that from January to March this year, Chinese tourists spent 271.5 billion yen (approximately $1.7 billion) in Japan, a 50.4% decrease year-on-year. The portion of Chinese tourist spending in the total foreign tourist expenditure in Japan also decreased from 24% in the same period in 2025 to 11.6%.
Fortunately, due to a weaker Japanese yen, the overall number of visitors is rebounding. The Japan National Tourism Organization stated that in April, Japan received a total of 3.6 million visitors, a decrease of 5.5% year-on-year but the highest number so far this year. The number of visitors from South Korea, Taiwan, and Vietnam hit record highs in that month. Visitors from France also set a record for the highest number in a single month.
Saki Iwata, a researcher at the Sumitomo Mitsui Trust Research Institute, indicated that there were signs that the Japanese tourism industry needed to attract more visitors from other countries. As of 2024, Chinese tourist spending in Japan had not returned to pre-pandemic levels, and the trend of extravagant shopping had weakened. While some businesses had diversified their operations, those still heavily reliant on Chinese customers were hit the hardest.
Jikko Hamono, a traditional Japanese knife retailer in Osaka, revealed that 80% of their customers were foreigners. Despite the decrease in Chinese tourists, there are still many visitors from other countries, so they have not seen a significant reduction in customer numbers.
Edion Shinsaibashi Higashi, an electronic store in Osaka, also disclosed that though the number of Chinese tourists had significantly decreased, customers from Turkey, France, Mexico, and India had increased significantly.
It was noted that Chinese-targeted businesses were most affected. Before China issued warnings about traveling to Japan, 70% of inbound customers for ACT Travel agency were from mainland China. However, in December last year, the company did not receive any new orders, and all existing orders were canceled. Consequently, they shifted their focus to providing services for Vietnamese tourists.
Tokyu Resort Hotels, a large chain of hotels in Japan, has been actively expanding into international markets and joined the Global Hotel Alliance (GHA) in March this year. A spokesperson for Tokyu Resort Hotels stated that by joining GHA, they could broaden their customer base more evenly.
Although Japanese companies and businesses have started adjusting to the decline in Chinese tourists, the surge in aviation fuel prices due to the Iran conflict and international travel costs have brought a new wave of challenges.
Iwata pointed out that because regional airfare prices are relatively cheap, many visitors from Southeast Asian countries are visiting Japan for the first time. If ticket prices continue to rise, many people may choose not to come to Japan, leading to a potential decrease in the number of repeat visitors in the future.