Japan's tourism sector could lose over ¥2 trillion ($12.8 billion) in Chinese visitor spending if current diplomatic strains with China extend beyond 2025, warns Hideo Kumano, chief economist at Dai-ichi Life Research Institute. The projection highlights growing concerns about prolonged economic ripple effects as bilateral relations remain tense.
Chinese tourists accounted for nearly 30% of Japan's pre-pandemic tourism revenue, with spending patterns showing strong demand for retail, hospitality, and cultural experiences. Kumano emphasized that a year-long downturn would particularly affect small businesses in cities like Tokyo and Osaka, where Chinese travelers constitute a major revenue source.
While Japan welcomed 24 million international visitors this year, recovery efforts face headwinds from geopolitical uncertainties. Analysts note that tourism-dependent industries are urging dialogue to stabilize cross-border exchanges, though neither government has announced new initiatives to address the economic risks.
