Decline in Chinese travelers hits Japanese tourism sector

The number of Chinese tourists visiting Japan has seen a significant decline recently, influenced by factors including controversial remarks made by Japanese Prime Minister Sanae Takaichi.

In parts of Japan's Nagano Prefecture, where tourism is a pillar industry, restaurants, shops and hotels are feeling the impact, with owners expressing concern.

In Matsumoto, a well-known historical and cultural tourist city in Nagano, restaurants, hotels, craft and antique shops depend on overseas visitors, with Chinese tourists accounting for a significant proportion.

"Usually, we have a lot of Chinese tourists, but due to the situation between Japan and China, the number has dropped dramatically over the past two or three months. You don't see them much, even in town, compared to before. It has had some impact," said Aiko Ohira, a restaurant manager in Matsumoto.

"You see, we [used to] have quite a lot of Chinese customers. I guess it has had an impact, it seems like those people don't come or buy in Japan. So, yes, this business has been hit hard, especially for antique dealers like us," said Takaaki Higuchi, an antiques dealer.

Karuizawa is another popular tourist destination in Nagano where the noticeable drop in Chinese tourists is putting pressure on local hotels and shopping streets, especially during the peak winter season, when Chinese nationals usually make up the bulk of visitor numbers.

"At our hotel, inbound, or overseas, customers make up about 13 percent of our guests. And of that 13 percent, about 30 percent are Chinese. And most of them come during the winter, from December through February and March. Well, we're about to enter the Chinese New Year, which is a lovely time of year. And there are a lot of impacts. Yes, reservations for February and March have dropped significantly from some Chinese customers, so the surrounding hotels and customers in the shopping district are very worried about what will happen in the future. The impacts will likely be felt in the future," said hotel manager Takeo Suzuki.

Decline in Chinese travelers hits Japanese tourism sector

Chinese authorities are set to open duty-free shops each at 41 listed ports of entry to the country, including airports, sea ports and land border crossings, aiming to facilitate tax-free shopping for inbound travelers.

Five government departments, including the Ministry of Finance, made the announcement on Wednesday. They defined port-of-entry duty-free shops as stores located within the restricted zones of airports, sea ports or land border crossings. Spread across the country, these stores will only offer duty-free goods to inbound international passengers.

Analysts say the move will boost consumption and promote the sustained growth of the duty-free retail sector.

Beyond China's natural scenery and cultural appeal, shopping in the country is becoming an increasingly integral part of international tourists' travel itineraries. China has also been expanding its visa-free entry policies and refining tax-refund-upon-departure services for international tourists in recent years.

China to opens 41 new entry-port duty-free shops