The Japanese Food Service Industry Also Takes a Direct Hit from Wuhan Pneumonia

Attributed to the Decrease in Group Tourists from China

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Nihon Keizai Shimbun reported on the 29th that Japan's food service industry has taken a direct hit after the Chinese government banned group tours to prevent the spread of the novel coronavirus infection (Wuhan pneumonia).

According to the report, Japan's food service industry, which attracted Chinese group customers through travel agencies, is in an emergency situation due to a series of reservation cancellations.

Among the consumption of tourists visiting Japan, the food service industry accounts for the second largest portion after accommodation, making up about 20%.

At the pub Tami, 2,000 reservations were canceled for January and February. This restaurant is a popular lunch spot for group tourists, and the Tokyo Asakusa branch sees thousands of Chinese tourists visiting monthly. However, cancellations have been occurring continuously due to the exit ban caused by the novel coronavirus.

Chain restaurant Colowide is also experiencing a series of cancellations. At Colowide's meat restaurant 'U-kaku,' there were 15 cancellations (379 people) in January and 27 cancellations (714 people) in February. At branches with high visits from non-Japanese customers, tourists visiting Japan account for 30% of customers.

According to 'Dantame,' a restaurant search site for travel agencies, all meals for Chinese tourists mediated by the company were canceled from January 24th to around February 20th. As of the 28th, there have been 222 cancellations, corresponding to about 10,000 people. The amount is approximately 18 million yen (about 194 million KRW). The company stated, "Reservations for April are also being canceled, so the impact is expected to continue."

According to the Ministry of Land, Infrastructure, Transport and Tourism, the total annual consumption by Chinese tourists in 2019 was 1.7718 trillion yen (about 190 trillion KRW), the highest by country. Of this, food service consumption accounted for 295.5 billion yen. If the Chinese government's exit ban on its citizens continues, consumption within Japan is expected to suffer significant damage.

This content was produced with the assistance of AI translation services.