Japan counts cost of China's travel boycott

19/11/2025 16:12

Within days of China urging its citizens not to travel to Japan due to a diplomatic dispute.



Tokyo-based tour operator East Japan International Travel Service had lost 80% of its bookings for the remainder of the year.



The small firm, which specialises in group tours largely for Chinese clients, is at the sharp end of a backlash that threatens to deal a sizeable blow to Japan's economy, the world's fourth largest.



The travel warning - triggered by Japanese Prime Minister Sanae Takaichi's remarks about Taiwan, the democratically governed island claimed by China - has seen a wave of flight cancellations and battered tourism-related stocks in Japan.



Tourism accounts for around 7% of Japan's overall gross domestic product, according to the World Travel & Tourism Council, and has been a major driver of growth in recent years.



Visitors from mainland China and Hong Kong account for around a fifth of all arrivals.



The boycott could result in a loss of around $14.23 billion annually.



Tourism-related stocks in Japan have sunk since the warning was issued on Friday.



Meanwhile, already more than 10 Chinese airlines have offered refunds on Japan-bound routes until December 31, with one airline analyst estimating around 500,000 tickets have already been cancelled.