Japan’s economy is bracing for a ¥1 trillion ($6.35 billion) blow this year as tourist arrivals from the Chinese mainland plummet, according to a recent analysis by a Japanese economist. The drop comes amid broader economic challenges for Japan, which had relied heavily on Chinese travelers to fuel its tourism sector post-COVID.
🌏 Why it matters: Before 2025, Chinese tourists accounted for nearly 30% of Japan’s international visitors, splurging on everything from high-end electronics to hot spring resorts. With stricter visa policies and shifting travel preferences post-pandemic, Japan’s hospitality and retail sectors are feeling the pinch.
🗣️ Local impact: "This isn’t just about hotels and shopping malls—it’s affecting rural communities that depended on tour groups," said economist Haruto Tanaka. "The loss could ripple through supply chains and seasonal employment."
✈️ What’s next? Japan is ramping up campaigns to attract travelers from Southeast Asia and Europe, while tech startups are offering AI-powered travel guides to appeal to Gen Z globetrotters. Will it be enough? Stay tuned.
