Japan Joins US, Cuba and Thailand in Travel Slump, as Chinese Market Cancellations and Weakened Currencies Hammer the Tourism Sector

Published on November 26, 2025

A worrying shadow is falling across the global travel industry. For many months, stories boasted about a massive, post-pandemic travel boom. People were excited about visiting faraway places again. However, official government data is now painting a much darker picture. It suggests that several major tourist destinations are facing a surprise downturn. The most shocking news is that even Japan, a country setting new records for visitors, is now struggling. Analysts are looking closely at how Japan is suddenly joining the ranks of nations facing a worrying travel slump. Nations like the US, Cuba and Thailand are all experiencing sharp drops in visitor numbers or major market segments. It is a crisis driven by political rows, slow visa processes and internal economic struggles. This deep dive report explains the surprising reasons why this dream of a travel boom has quickly turned into a worldwide tourism nightmare.

The Curious Case of Japan’s Fading Shine

For a long time, the story of Japan’s tourism success seemed unstoppable. The country was seeing historic visitor numbers. Official data from the Japan National Tourism Organization (JNTO) showed an incredible surge. Japan welcomed an estimated 36.9 million international visitors in 2024. This number completely smashed the pre-pandemic record set back in 2019. It looked like a total victory for Japanese tourism.

However, official government reports have uncovered a strange and troubling reality. Japan’s tourism market is actually split in two. While foreign visitors flocked to Tokyo and Kyoto, the country’s domestic travel market was quietly collapsing. Government statistics confirmed that the number of Japanese people travelling within Japan saw a big drop. This domestic tourism sector decreased by roughly 8% in 2024 compared to 2019.

Experts explained that the extremely weak Japanese Yen was part of the problem. This weak currency made Japan cheap for people visiting from overseas. It was a great deal for them. But for Japanese citizens, the weak Yen and rising internal prices made travelling within their own country expensive. Overcrowding, caused by the huge number of foreign visitors, also made domestic trips less enjoyable. Therefore, the government noticed a significant decline in its internal tourism figures. This finding showed that Japan’s success was not as complete as it first appeared.

A Geopolitical Backlash: The China Cancellation Crisis

The largest, most immediate threat to Japan’s tourism boom came from a political argument. In late 2025, geopolitical friction caused a sharp, sudden crisis. News agencies reported that a political row between the countries led to a massive number of cancellations from the Chinese travel market. This segment is very important for Japan’s economy. Chinese visitors are traditionally the biggest spenders in Japan.

Government reports and industry analysts confirmed the astonishing drop. Since November 15, 2025, Chinese travelers had cancelled more than 540,000 flight tickets to Japan. This wave of cancellations was shocking to the tourism industry. Travel agencies in Tokyo noted that refund requests were piling up. Many group tours scheduled for November and December were completely scrapped.

Industry forecasts, based on this official data, estimated the economic damage. Analysts predicted that Japan stood to lose up to $1.2 billion in spending from Chinese visitors alone by the end of the year. This dramatic decline showed how vulnerable Japan’s tourism sector was to geopolitical problems. It showed that even record-breaking visitor numbers could not protect the economy from a sudden loss in a major market. The Chinese market collapse served as a powerful warning. The seemingly unstoppable success of Japan’s overall tourism was now in serious doubt. This massive cancellation event suddenly put Japan in a category of nations facing a travel slump, similar to the struggles seen in US, Cuba and Thailand.

The American Dream Deferred: The US Visa Barrier

The United States has also faced significant tourism struggles. The US has been one of the very few major global economies struggling to bring back its international visitor numbers to pre-pandemic levels. While most of the world was recovering rapidly, the official data showed that the US was lagging badly.

Experts explained that the main problem for US tourism was a self-inflicted wound: the complicated and slow visa system. The US Travel Association, which works closely with the Department of Commerce, provided data confirming this painful reality. The projections showed that the US was expected to see a decline in international travel in 2025.

According to official figures, international visitation was expected to decline by a shocking 6.3% in 2025. This meant that the US would reach only 85% of its 2019 visitor numbers. This was a poor performance compared to almost every other developed nation. Inbound travel spending, which is crucial for the US economy, was also projected to fall by 3.2%.

Reports noted that excessive visa wait times were the biggest deterrent. In some key source markets, people had to wait hundreds of days just for a visa interview. This massive delay made planning a trip to the US nearly impossible. Furthermore, the US has a smaller visa-waiver program compared to many European nations. This means fewer countries enjoy visa-free travel to the US. This combination of policies created a perception of the US as unfriendly or too difficult to visit. A U.S. Senator even voiced concern, citing industry data about the devastating economic impact. The struggle of the US to recover its tourism sector showed that high prices and complex entry rules could easily sink a travel market, regardless of the destination’s appeal. This decline put the US firmly on the list of nations facing a significant tourism challenge.

The Tropical Nightmare: Why Thailand’s Tourism is Running on Empty

Thailand, a destination famous for its beaches and vibrant culture, is another country that is struggling with its tourism figures. Despite huge government efforts to lure back visitors, official statistics from the Thai government showed a concerning year-on-year decline in 2025.

The Ministry of Tourism and Sports in Thailand reported that foreign arrivals dropped by 6% in the first seven months of 2025. This contraction was very troubling. Industry forecasts, based on this government data, expected the full year 2025 foreign arrivals to decline by around 7% compared to the previous year. This was a clear sign that the tourism sector in Thailand was losing momentum.

Analysts pointed to several factors driving the slump in Thailand. First, the country was facing strong competition from its regional neighbours. Destinations like Japan and Vietnam were suddenly seen as fresher or more appealing alternatives. Second, Thailand had struggled with negative publicity. Reports of scams and safety concerns had damaged the country’s reputation, especially in key short-haul markets like China and South Korea.

A third major factor was economic: the appreciation of the Thai Baht. A stronger Baht made holidays in Thailand more expensive for many international travelers. This made it less competitive when compared to other destinations in Southeast Asia. The combination of intense competition, safety worries and economic shifts meant that Thailand was experiencing a serious contraction. Its struggle confirmed that even the most famous tourism hotspots could quickly see their numbers plummet when core issues were not addressed. Thailand’s difficulties mirror the surprising troubles found in US and Cuba’s markets. The struggle of Thailand showed that fame alone is not enough to maintain a robust tourism industry.

Cuba’s Hard Times: Where Economic Woes Hit the Tourist Trail

For the Caribbean island nation of Cuba, the decline in tourism is not a subtle trend but a dramatic year-on-year contraction. Cuba’s struggle is deeply tied to its internal economic problems and the subsequent loss of key international markets.

Official figures from Cuba’s National Office of Statistics and Information (ONEI) painted a grim picture. The data revealed that international visitor numbers had contracted severely in 2025. The number of international visitors was only 76.8% of the previous year’s level for the period ending July 2025. This represented a shocking 23.2% year-on-year contraction. This meant Cuba received over 338,000 fewer visitors than it did in the same period of 2024.

The reasons for Cuba’s major tourism slump are overwhelmingly internal and economic. The country has been grappling with a severe economic crisis. This crisis has led to widespread shortages of essential goods, including food and basic supplies. Furthermore, rising fuel costs have made travel within Cuba more expensive and difficult for tourists.

Reports also highlighted a dramatic drop in arrivals from the Russian Federation, a previously strong market for Cuba. This market saw a massive 41.8% year-on-year decline. The combination of domestic hardships, logistical problems and a loss of major source markets has severely damaged Cuba’s ability to attract and serve international travelers. The Cuba situation is a powerful example of how deep, underlying economic issues can directly destroy a nation’s tourism sector, making its decline even more severe than those seen in US or Thailand. The severe contraction in Cuba offers a painful lesson to the entire global tourism sector.

The Sleeping Giant: China’s Inbound Lagging Behind

While the crisis in Japan was about Chinese people cancelling their trips, it is also worth noting the problem of inbound tourism to China itself. China’s government statistics confirm that, despite massive numbers of domestic travelers, the segment of foreign visitors (non-Chinese passport holders) is recovering very slowly.

Official data from the National Immigration Administration showed that this key segment of foreign visitors only saw its arrivals recover to less than 30% of their 2019 levels in some European and American markets. This deep lag shows that tourism is failing to take hold in the world’s second-largest economy. Issues like complex digital payment systems and limited flight connections are holding back the tourism recovery in China. This broader, long-term stagnation in China’s inbound foreign tourism adds another layer of complexity to the worldwide travel slowdown.

The Cautionary Takeaway for Global Tourism

The surprising struggles of these powerful economies—Japan, the US, Thailand and Cuba—offer a stark warning to the entire global tourism industry. The analysis shows that even the most appealing destinations are not immune to decline. Whether it is geopolitical friction in Japan, bureaucratic hurdles in the US, safety worries in Thailand, or economic collapse in Cuba, the impact is the same: fewer travelers and less revenue.

The sudden slump in the Chinese market affecting Japan’s figures proves that political stability is now essential for tourism. The persistent struggle of the US proves that efficient visa and entry procedures are more important than ever. The setbacks in Thailand and Cuba show that economic factors and a good reputation are key. The booming period of recovery is over. Governments and industry leaders must now deal with a complex and challenging new reality where a tourism decline can strike anywhere, anytime. The world is watching to see which of these nations—Japan, US, Cuba or Thailand—can fix its problems first and truly regain its footing in the competitive global travel market.