In a recent incident, Beijing issued a travel ban following Japanese Prime Minister Sanae Takamichi’s remarks regarding Taiwan, causing significant repercussions for Chinese suppliers who provide full-service packages for Chinese tourists in Japan.
The surge in Chinese tourists visiting Japan has fueled the growth of the “full-service” tourism industry, where Chinese enterprises in Japan arrange every aspect of a tourist’s itinerary, from accommodation and transportation to entertainment and dining, all conducted in Chinese and often involving online transactions through Chinese payment platforms.
Amid the ongoing Chinese travel ban, the “full-service” industry is experiencing a shrinkage due to numerous cancellations. A Chinese woman who operates three vacation rental properties in Tokyo shared with Nikkei Asia News anonymously, “My private vacation homes in Tokyo were fully booked until November 14, but most reservations for December have been canceled, with Chinese tourists unwilling to pay cancellation fees.”
According to Nikkei’s report on December 23, she is among many Chinese owners providing services for Chinese tourists, including small travel agencies, driver-guides, Chinese restaurants, and even traditional Japanese clothing rental services. These services, not widely known within Japan’s tourism industry, heavily rely on online platforms and Chinese operations, some lacking essential Japanese permits.
Japan has long been a top overseas destination for Chinese tourists. Data from Japan National Tourism Organization shows that in the first 11 months of this year, Japan welcomed 8.7 million Chinese tourists, marking a nearly 40% increase from 2024.
On November 7, Japanese Prime Minister Takamichi’s remarks on Taiwan during a parliamentary session, stating that Taiwan’s emergency situation could pose a survival threat to Japan, irked the Chinese authorities, leading to a travel advisory on visits to Japan. Chinese airlines have reduced flights to Japanese cities, with November’s Chinese visitor increase slowing to just 3%.
Japanese businesses are adapting to market changes by attracting tourists from other countries. According to the latest data from Japan National Tourism Organization (JNTO), the tourist numbers during the peak travel season in 2025 have seen a significant rise, with the total number reaching 39.07 million in the first 11 months, surpassing last year’s full-year record of 36.87 million.
This growth is primarily attributed to an increase in tourists from regions like South Korea, Taiwan, and the United States. The November data further reflects this trend, with 19 markets, including South Korea, Taiwan, and the United States, reaching record-high numbers of visitors that month.
For Chinese businesses, transitioning to serving non-Chinese tourists poses challenges. “Most of our customers are Chinese, so we can’t suddenly shift to serving European or American tourists. We have no idea how to proceed,” said a Chinese store attendant running a traditional kimono rental store in Asakusa, central Tokyo.
When visited by a Nikkei News reporter in mid-December, the shop, located on the third floor of a multi-tenant residential building, was dimly lit and unoccupied, with the staff admitting to low customer traffic.
According to Flight Butler’s latest statistics, in January 2026, the cancellations of flights between China and Japan have amounted to 2,195 flights, with an overall cancellation rate of 40.4%. Forty-six Sino-Japanese flight routes are planning to cancel all flights within the next two weeks (December 23, 2025, to January 5, 2026), with a 100% cancellation rate, affecting a total of 38 airports in both China and Japan.
Market observers point out that the Chinese government’s use of tourism as a diplomatic tool has resulted in self-inflicted consequences.
Asian economic commentator Chen Zhiqiang analyzed in an interview with The Wall Street Journal, “This is a typical form of self-harming sanctions. A significant portion of Japan’s tourism ecosystem, from ground operators and private guides to lodging and dining, is heavily operated by Chinese entrepreneurs. The ban by the Chinese government directly impacts the livelihoods of these Chinese business owners.”
“More importantly, the profits earned by these Chinese entrepreneurs often flow back into domestic consumption or investment in China; cutting off travel to Japan means severing this important foreign exchange and capital inflow channel, undoubtedly adding to the woes of China’s struggling domestic economy.”