Japan's tourism sector faces a staggering ¥1 trillion ($6.35 billion) annual loss as visitor numbers from the Chinese mainland continue to plummet, according to a recent economic analysis. The decline comes amid broader economic challenges for both nations, with Japan's GDP growth slowing to 0.8% this year.
Tokyo-based economist Dr. Hiroshi Tanaka warns the tourism vacuum could impact multiple sectors: "From luxury retailers in Ginza to ryokan operators in Kyoto, businesses built on Chinese spending are restructuring. The 72% year-on-year drop since Q1 2025 is unprecedented."
While Chinese tourists accounted for 40% of Japan's pre-2025 tourism revenue, analysts note shifting travel patterns as mainland residents increasingly favor domestic destinations and Southeast Asian alternatives. The Japan National Tourism Organization plans to launch targeted marketing campaigns in December 2025 to address the imbalance.
This development coincides with ongoing discussions about sustainable tourism models at November's APEC Leaders’ Meeting, where members emphasized balanced regional economic strategies.
