"Where Have All the Chinese Tourists Gone in Osaka and Kyoto?"... Hotel Bookings Plunge by Up to 70%

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Reports have emerged that the Japanese tourism industry is experiencing a growing sense of crisis due to escalating tensions between China and Japan, sparked by Japanese Prime Minister Sanae Takaichi's remarks about 'intervening in the event of a Taiwan contingency.' According to Yonhap News on December 2, citing the Nihon Keizai Shimbun (Nikkei), "Tripla, a Japanese accommodation reservation site, reported that the number of hotel bookings from China during the week of November 21 to 27 dropped by about 57% compared to November 6 to 12, before the Chinese government's advisory against visiting Japan." While a significant portion of the decrease in Chinese travelers was offset by other international and domestic travelers, the total number of reservations still fell by about 9%.

Reports have emerged that the conflict between China and Japan, sparked by Japanese Prime Minister Sanae Takaichi's remarks on 'intervention in the event of a Taiwan contingency,' is spreading a sense of crisis within Japan's tourism industry. Photo by AFP Yonhap News

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Since China began advising its citizens to refrain from visiting Japan on November 14, the travel industry has been on high alert. According to Yonhap News, the impact has been particularly significant in the Kansai region, including Osaka and Kyoto. On November 27, the Osaka Convention & Tourism Bureau stated, "After inquiring with about 20 hotels, we found that 50% to 70% of reservations by Chinese guests had been canceled through the end of December." The Kyoto City Tourism Association also reported on November 28 that "some accommodations have experienced reservation cancellations" in their lodging trend survey.

Kansai Airports, which operates Kansai International Airport-the main international gateway for the Kansai region-said, "The number of flights connecting Kansai Airport and China will be reduced by about 34% in the second week of December," and projected that "the reduction will average about 28% in the first quarter of next year."

Some cruise ships have also canceled calls to Japanese ports. A Chinese cruise ship operating between Miyakojima City in Okinawa Prefecture and Fujian Province in China postponed its scheduled call on November 20, and a cruise ship departing from Shanghai canceled its call at Naha City, Okinawa Prefecture, scheduled for December 20. Nikkei reported, "Although the situation has not yet led to a drop in hotel room rates, if it continues for an extended period, it could become a downward factor for the regional economy."

On the 21st of last month, protesters gathered outside the Prime Minister's Office in Tokyo, Japan, opposing Prime Minister Sanae Takaichi's remarks related to Taiwan. Photo by AP Yonhap News

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Some countries have benefited from the Chinese government's advisory against travel to Japan. These include Southeast Asian countries such as Thailand, Vietnam, Singapore, and Malaysia. According to the South China Morning Post (SCMP) on December 1, citing digital marketing company China Trading Desk, "The number of travel bookings by Chinese tourists to Southeast Asia increased by about 15% to 20% compared to the average in September and October."

According to SCMP, Singapore, in particular, is seeing a surge in travel demand. Since the Chinese authorities issued the advisory against travel to Japan last month, the number of bookings by Chinese travelers to Singapore has reportedly increased by about 20% to 25% compared to the same period last year. Singapore is especially popular because it has a large Chinese population, who hold significant economic influence, and Mandarin is widely spoken. Additionally, Singapore's neutral stance amid the US-China rivalry is cited as one of the reasons Chinese tourists feel comfortable visiting.

Subramania Bhatt, CEO of China Trading Desk, told SCMP, "The Chinese government has sent an unusually strong signal by warning citizens to refrain from traveling to Japan for the time being," adding, "With Chinese airlines and cruise operators offering free cancellations and changes, it has become much easier for ordinary travelers to follow the government's guidance."

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