KYOTO - Japan's tourism industry is undergoing a major shift one year after China urged its citizens to avoid traveling to Japan, with Chinese visitor numbers falling sharply and businesses in Osaka struggling to recover lost revenue, while Kyoto has successfully attracted more Western tourists through a strategy aimed at reducing its dependence on the Chinese market.
The downturn began on November 14, 2025, when the Chinese government called on its citizens to refrain from visiting Japan following remarks by Prime Minister Sanae Takaichi concerning a possible military conflict over Taiwan. Takaichi had suggested that a Chinese military operation involving the use of force could constitute a situation threatening Japan's survival, potentially allowing the country to exercise its right to collective self-defense.
Beijing reacted strongly, warning that anyone attempting to cross what it described as a fundamental red line concerning Taiwan would face a forceful response from China. The Chinese Foreign Ministry subsequently issued its travel advisory, triggering a sharp decline in Chinese visitors to Japan.
Nearly one year later, the effects remain evident in some of Japan's best-known tourist destinations.
In Tokyo's Asakusa district, where large numbers of Chinese tourists could be heard speaking Mandarin around the Kaminarimon Gate in November 2025, the streets are now noticeably different. Although the area remains crowded with international visitors, Chinese tourists are far less prominent.
A local shopkeeper said the number of Chinese visitors had clearly declined, while families from Western countries appeared to be increasing.
According to tourism statistics, approximately 430,000 Chinese visitors arrived in Japan in September 2026, representing a decline of nearly 50% from the same month a year earlier.
An expert familiar with Chinese affairs said much of the decline involved organized tour groups, particularly those operated by state-owned Chinese travel agencies, which have been strongly influenced by Beijing's position.
The impact has been particularly severe in Osaka, traditionally one of the most popular destinations for Chinese tourists.
A survey released by the Osaka Convention & Tourism Bureau in November showed that Chinese visitor numbers from January through September 2026 had fallen to just 36.7% of the level recorded during the corresponding period in 2025.
In the Dotonbori entertainment district, a popular takoyaki shop established in 1979 has experienced a substantial decline in sales.
Matsuda, the shop's deputy manager, said Chinese customers had become much less common. Previously, Chinese could be heard almost everywhere along the bustling shopping streets, but that was no longer the case.
He estimated that daily sales had fallen by approximately 100,000 to 150,000 yen as a result of the downturn.
To compensate, the business has extended its operating hours and raised some prices, gradually making up part of the lost revenue.
Accommodation providers are facing similar difficulties.
One Osaka vacation rental operator, which offers large rooms for families and groups, said Chinese tourists previously accounted for approximately 25% of its revenue. Its properties include rooms accommodating up to seven people and a renovated traditional house capable of hosting groups of up to 12.
Following Takaichi's remarks in November 2025, the proportion of revenue generated by Chinese guests dropped below 1%, before falling to almost zero in 2026.
The operator expects annual revenue to decline by approximately 60 million yen and has begun advertising more aggressively in other markets, including listing its properties on South Korean travel websites to attract new customers.
In contrast, Kyoto has demonstrated that the disappearance of Chinese tourists does not necessarily translate into an overall decline in visitors or revenue.
Arashiyama, one of Kyoto's most popular destinations for autumn foliage, remains crowded despite a steep reduction in Chinese tourists.
A survey conducted by the local shopping district showed that Chinese visitors, who represented a substantial share of foreign tourists in October 2025, had almost disappeared from the area by October 2026.
Nevertheless, local businesses reported that overall customer numbers had remained relatively stable as tourists from Europe, North America and other regions replaced the missing Chinese visitors.
One shop operator said the decline in Chinese customers had been offset by an increase in visitors from other countries, leaving total foot traffic largely unchanged.
Western visitors interviewed around Kyoto described Japanese cuisine, traditional culture and historical landmarks as major attractions.
One tourist said Kyoto's food was exceptional and described a recent matcha experience as unforgettable.
Near Kiyomizu Temple, a Brazilian visitor named Lucas said his interest in Japanese shrines, temples, culture and cuisine had inspired him to begin studying Japanese and make his first trip to the country.
He was spending 20 days traveling around Japan, including Tokyo, Mount Fuji and Kyoto, and enjoyed exploring the city in a kimono, taking photographs and participating in a traditional tea ceremony.
Hotels in Kyoto have also benefited from the changing composition of international visitors.
One hotel operator said the increase in guests from Europe and North America had more than compensated for the decline in Chinese customers, allowing annual revenue to remain stable or rise slightly.
Behind the improvement is a deliberate strategy to attract travelers who stay longer and spend more on accommodation and experiences.
The hotel underwent extensive renovations about a year ago to emphasize traditional Kyoto aesthetics, while expanding its selection of pillows and other guest amenities to improve comfort.
It also invites a maiko, or apprentice geisha, to perform traditional dances for guests approximately once every two days.
Hotel management said Western tourists tend to place greater value on the accommodation experience itself, while many Chinese group travelers had previously used hotels mainly as places to sleep between sightseeing activities.
By improving facilities and offering cultural experiences, the hotel has been able to increase spending per guest.
Western travelers interviewed in Kyoto described plans to spend 16 days or even 31 days in Japan, including one couple visiting on their honeymoon.
Government tourism data also highlights differences in travel patterns and spending.
Chinese visitors stay in Japan for an average of approximately seven days and spend around 250,000 yen per person, while visitors from the United States and France typically stay for more than 10 days and spend amounts approaching 400,000 yen.
The longer stays and higher spending have made Western travelers an increasingly attractive market for tourism businesses seeking to reduce their exposure to political tensions between Japan and China.
Arashiyama's shopping district has also changed its promotional strategy.
Previously, the district organized events aimed specifically at Chinese tourists, including celebrations associated with Chinese holidays. Those activities have since been reconsidered in favor of campaigns targeting a wider range of international visitors.
Local business representatives said they had long discussed the importance of attracting customers from multiple countries, including maintaining a strong domestic tourism market, rather than relying too heavily on any single source of visitors.
The diversification strategy has helped Arashiyama sustain visitor numbers despite the prolonged downturn in Chinese tourism.
The deterioration in relations between Japan and China has also affected industries beyond tourism, particularly food exports.
In November 2025, China effectively suspended imports of Japanese seafood, adding to existing restrictions on food products originating from 10 Japanese prefectures.
At a Japanese food export exhibition held in Tokyo in November 2026, producers of meat, seafood, confectionery, sake and other products were exploring opportunities in overseas markets.
One sake producer from Chiba Prefecture said the restrictions had prevented it from selling locally produced Japanese rice wine to China, historically one of the industry's most important export destinations.
Although the company currently exports to other Asian countries, the United States and Europe, it remains eager to regain access to the Chinese market.
A company representative said China's large population and strong demand for Japanese sake made the market too important to abandon, expressing hope that exports could resume soon.
Another exhibitor promoting matcha products also emphasized China's potential, citing its large population and substantial number of wealthy consumers as reasons to pursue sales there.
However, some seafood businesses have already adapted to the loss of the Chinese market and are finding success elsewhere.
One seafood wholesaler said it was no longer particularly concerned about whether Chinese import restrictions would be lifted, as business had recovered through stronger demand from the United States and Southeast Asia.
The company initially suffered a decline in sales following the restrictions, but subsequent growth in alternative markets helped restore revenue.
The contrasting experiences illustrate how Japanese businesses are responding differently to the prolonged deterioration in bilateral relations. While some remain eager for Chinese customers and trading partners to return, others are increasingly focused on building more diversified sources of revenue.
The economic consequences are also being felt in China. An expert on Chinese affairs said the travel advisory had contributed to financial losses for Chinese airlines, raising the possibility that Beijing could eventually adopt a more pragmatic approach by separating economic interests from political disputes.
Attention is now turning to the Asia-Pacific Economic Cooperation leaders' meeting scheduled for November 18 and 19 in Shenzhen, China, where a possible dialogue between Takaichi and Chinese President Xi Jinping could provide an opportunity to improve relations.
Whether the two leaders can establish a path toward easing tensions remains uncertain.
One year after Beijing's call to avoid travel to Japan, the experience has exposed the risks of depending heavily on a single overseas market, while accelerating efforts across Japan's tourism and food industries to attract customers from a wider range of countries.
Source: FNN
