Within days of China advising its citizens against travelling to Japan amid a diplomatic dispute, Tokyo-based tour operator East Japan International Travel Service reported an 80% decline in bookings for the rest of the year.
The small firm, specialising in group tours mostly for Chinese clients, faces severe repercussions from a backlash that could significantly impact Japan’s economy, which ranks as the world’s fourth largest. The travel warning, triggered by Japanese Prime Minister Sanae Takaichi’s comments on Taiwan, a democratically governed island claimed by China, has led to numerous flight cancellations and a decline in tourism-related stocks in Japan.
“This is a huge loss for us,” said Yu Jinxin, vice president of the company. Tourism contributes about 7% to Japan’s GDP and has been a key driver of recent growth. Official data shows that visitors from mainland China and Hong Kong make up approximately 20% of all arrivals.
Estimates by Nomura Research Institute suggest the boycott could potentially lead to an annual loss of around 2.2 trillion yen ($14.23 billion). Since the warning was issued on Friday, Japanese tourism stocks have declined, reflecting market concerns.
Over ten Chinese airlines have already announced refunds for Japan-bound flights until December 31, with an estimated 500,000 tickets cancelled, according to airline analysts.
Takaichi’s comments about Taiwan caused the worst diplomatic strain between Japan and China in years. She warned that a Chinese attack on Taiwan, threatening Japan, could trigger a military response. Chinese officials and media responded harshly, leading Tokyo to advise citizens in China to stay safe and avoid crowds.
China called for Takaichi to retract her remarks, but Tokyo said they align with policy. Beijing suspended Japanese films, and Japanese celebrities in China expressed support for China to pre-empt backlash.
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Yu highlighted her company’s resilience during past tensions, like Japan’s 2012 island nationalisation, but warned a prolonged crisis could harm her business if it lasts over a month.
