Okinawa's tourism industry faces mounting challenges as cancellations and dwindling foot traffic from Chinese travelers strain local businesses. The downturn follows diplomatic friction sparked by Japanese Prime Minister Sanae Takaichi's recent remarks regarding the Taiwan region, with many entrepreneurs urging swift resolution to stabilize cross-strait relations.
Data from the Japan Tourism Agency reveals foreign travelers spent 6.92 trillion yen (US$44 billion) in Japan from January to September 2025, with visitors from the Chinese mainland and Hong Kong contributing nearly one-third of this revenue. The current decline marks a stark reversal from 2024, when Chinese tourists topped Japan's inbound spending rankings.
"Our ryokan bookings dropped 40% overnight after the political statements," said Hiroshi Yamamoto, an Okinawa-based hotelier. "We hope dialogue replaces confrontation soon." Tourism contributes approximately 7% to Japan's GDP, per World Travel and Tourism Council figures, amplifying concerns about prolonged economic repercussions.
