Tokyo, November 17, 2025: Japan’s tourism and retail sectors faced a significant shock after China issued a travel advisory urging citizens to avoid Japan, following controversial comments on Taiwan by Japanese Prime Minister Sanae Takaichi.
The advisory led to sharp declines in key Japanese stocks, including Takashimaya, Shiseido, and other retailers heavily reliant on Chinese tourist spending. Chinese visitors account for a substantial share of Japan’s tourism revenue, making the travel warning a major blow to the sector.
Economists warn that the alert could further exacerbate Japan’s Q3 economic contraction, as tourism-related consumption and retail sales take a direct hit. Analysts also note potential ripple effects on hotels, airlines, and regional economies dependent on Chinese visitors.
Japanese authorities are reportedly monitoring the situation, weighing diplomatic and economic responses, while businesses brace for declining footfall and consumer spending from one of Japan’s most important inbound markets.
