Japan faces $1.6b tourism hit, while bookings to Singapore, South Korea rise

Japan could lose out on as much as US$1.2 billion (S$1.6 billion) in visitor spending between now and the end of 2025, as would-be travellers from China cancel their trips because of a worsening diplomatic spat.

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Around 30 per cent of the 1.44 million trips to Japan from China planned through the end of December have been cancelled since Beijing advised citizens to avoid travelling there, according to figures from China Trading Desk, a market researcher that specialises in travel data.

Roughly 70 per cent of the drop comes from near-term departures being cancelled or delayed, while new bookings have not materialised, it said.

That is set to remove at least US$500 million in spending from Japan, though the figure could rise to US$1.2 billion, said its chief executive Subramania Bhatt.

His calculations are based on estimates that Chinese tourists spend over US$900 million a month, as well as data on Chinese overseas spending from UnionPay and other financial services companies.

Japan is facing a major hit at a delicate time for its economy after remarks by Prime Minister Sanae Takaichi that linked the use of military force in any Taiwan conflict with the potential deployment of Japanese troops.

The retaliation from Beijing, which has suspended seafood imports from its neighbour, threatens to ripple through Japan’s economically significant tourism sector, which counts China as its biggest source of visitors.