Japan faces economic hit as China urges travel boycott over Taiwan dispute
Japan is already feeling the financial impact of China’s travel warning, issued after Japanese Prime Minister Sanae Takaichi’s remarks on Taiwan. Within days, East Japan International Travel Service, a Tokyo-based tour operator specialising in group trips for Chinese clients, reported an 80% drop in bookings for the remainder of the year, highlighting the economic risks of the escalating diplomatic rift.
The warning comes amid rising tensions after Takaichi told Japanese lawmakers that a Chinese attack on Taiwan—claimed by Beijing—threatening Japan’s security could prompt a military response. China swiftly advised its citizens to avoid traveling to Japan, prompting flight cancellations and rattling tourism-related stocks in Tokyo. More than 10 Chinese airlines have offered refunds on Japan-bound routes through the end of December, with around 500,000 tickets reportedly canceled, News.Az reports, citing Reuters.
Tourism represents roughly 7% of Japan’s GDP, with visitors from mainland China and Hong Kong accounting for about a fifth of total arrivals. Nomura Research Institute estimates that the boycott could cost Japan around 2.2 trillion yen ($14.2 billion) annually. Yu Jinxin, vice president of East Japan International Travel Service, said that while her company had weathered previous disputes, including the 2012 nationalisation of disputed islands, the current crisis could be far more damaging if it persists beyond a few months.
The dispute has also spilled into cultural arenas. China has suspended screenings of upcoming Japanese films, while Japanese celebrities popular in China have made public statements to ease tensions. Singer MARiA posted on Weibo, affirming support for “One China” and expressing affection for her fans in the country.
Tokyo has resisted Beijing’s demands for Takaichi to retract her comments, maintaining that they reflect the government’s position. Japanese authorities have meanwhile advised their citizens in China to exercise caution and avoid crowded areas.
Analysts warn that unless the diplomatic situation stabilizes, Japan’s tourism sector could face a prolonged downturn, with significant repercussions for both businesses and broader economic growth.
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