Relations between Tokyo and Beijing became strained this month following a statement by Japanese Prime Minister Sanae Takaichi regarding Taiwan. This sparked concerns about the impact on Japan's tourism industry, particularly shops, restaurants, and hotels that rely on revenue from Chinese tourists. However, many businesses remain calm.

Shiina Ito, who owns a jewelry store in Tokyo's Asakusa district, noted a decrease in Chinese customers recently after Beijing advised its citizens to avoid Japan. Despite this, Ito is not overly worried because domestic customers are returning, enjoying a shopping experience free from long queues.

"When there are fewer Chinese customers, Japanese shoppers have a more relaxed space, so our sales haven't dropped", Ito stated.

Before the diplomatic tension between the two countries escalated, Chinese visitors accounted for one-half of Ito's customers. Residents of Asakusa have long been accustomed to the sight of crowds of Chinese-speaking tourists filling the narrow alleys lined with traditional shops.

Chinese tourist group visits Ginza shopping district in Tokyo on 17/11. Photo: *AFP*

In the Ginza area, Yuki Yamamoto, manager of a popular udon restaurant, reported no significant impact from the decline in Chinese tourists, despite this group typically making up one-half of his daily customers. "A reduction in customers is regrettable, of course, but Japanese customers are still coming steadily, so we are not too concerned", Yamamoto said.

Many Japanese tourism and retail companies heavily depend on Chinese tourists, a group known for spending more than the average on services from food to cosmetics. Numerous hotels, luxury fashion stores, and pharmacies even employ Chinese-speaking staff, and shopping centers display guides in the language.

China is Japan's largest source of tourists, with nearly 7,5 million visits in the first 9 months of 2025, accounting for one-quarter of all international visitors. Chinese tourists spent approximately 3,7 billion USD in Q3 this year alone. Last year, the average spending by Chinese tourists was 22% higher than visitors from other countries. However, Japan's record 36,8 million international visitors last year also raised concerns about tourism overcrowding.

Minister of Economic Security Kimi Onoda warned that Japan risks "over-reliance on a country that consistently uses economic pressure when displeased", arguing this threatens both supply chains and tourism.

Tensions between China and Japan escalated after Prime Minister Takaichi on 7/11 hinted that Tokyo might intervene militarily if Taiwan, an island located about 100 km from Japan's southernmost island, were attacked.

China responded strongly, advising its citizens not to travel to Japan. This led to a sharp decline in the country's retail and tourism sector stocks, which have not yet recovered. However, Japanese Transport Minister Yasushi Kaneko believes this is not a cause for excessive worry, as the number of visitors from other markets to Japan continues to increase.

Chinese tourists on Ginza street, Tokyo, on 17/11. Photo: *AFP*

Nevertheless, some Japanese businesses have been severely affected by the diplomatic tension, particularly hotels specializing in Chinese guests.

"Cancellations from Chinese agencies are constant. 50-60% of our guests are Chinese. I hope the situation stabilizes soon, but it will likely take time", said Keiko Takeuchi, owner of the Gamagori hotel.

Wu Weiguo, manager of a travel agency in Shanghai, stated that the most significant impact from the current tension has been on tour groups, with approximately 90% of his company's clients requesting refunds. However, Wu also believes the current dispute will not deter most Chinese tourists' desire to visit Japan.

"They believe that services in Japan are both high-quality and reasonably priced. Chinese people will still want to go there", he said.

Some conservative Japanese politicians have even expressed satisfaction with China's call for a tourism boycott between the two countries. Naoki Hyakuta, a right-wing politician from Japan's Conservative Party, declared he was "very satisfied" with the reduction in Chinese visitors to Japan, suggesting that many in this group exhibit "uncivilized behavior", which could further escalate tensions.

Hyakuta argued that Prime Minister Takaichi should not apologize or retract her statement on Taiwan, and he hopes China will maintain its travel restrictions.

Hyakuta assessed that Japan's economic damage is "not too significant if divided among 120 million people", adding that the cost for each Japanese person would be only about 18.000 yen. China has not commented on this statement.

Thanh Danh (*Based on AFP, Chosun, MK*)