Japan’s Hospitality Sector Struggles as China’s Political Stance Leads to Major Cancellations in Osaka and Tokyo – Everything You Need to Know About the Crisis

Published on December 5, 2025

The escalating political tensions between Japan and China, particularly over the issue of Taiwan, are now having a significant and prolonged impact on Japan’s tourism industry. The situation, fueled by growing diplomatic rifts, has led to a decrease in Chinese tourists visiting Japan, with widespread flight cancellations and a dramatic drop in hotel reservations. These developments are concerning for Japan, especially as the country has increasingly relied on international visitors for economic recovery following the pandemic.

The Chinese government has issued travel warnings, urging its citizens to avoid Japan, resulting in decreased travel traffic. As a consequence, the tourism sector, which had previously experienced growth, is now facing setbacks. The Chinese market—one of Japan’s largest tourism sources—has seen a noticeable decline in visitors, which is affecting both the aviation sector and hospitality services.

Significant Flight Reductions and Airline Cancellations

The impact of the political tensions is immediately visible at major Japanese airports, particularly at Kansai International Airport, located in Osaka. The number of scheduled flights between Japan and mainland China has sharply dropped, with Chinese airlines reducing services in response to the ongoing crisis.

The airport operator reported a significant 34% reduction in flight operations for December compared to initial expectations. Additionally, the reduction in flights is expected to continue, with an estimated 28% decline in services between January and March of next year. These cuts are compounded by cancellations of hotel bookings, which are further crippling the local economy.

Hotel Bookings in Osaka and Other Areas Face Heavy Cancellations

The tourism sector is also grappling with an unprecedented number of hotel cancellations. In Osaka, a key hub for Chinese tourists visiting Japan, nearly 50% to 70% of bookings made by Chinese nationals have been cancelled across a wide range of hotels. This figure reflects the growing uncertainty surrounding travel between the two nations.

Tourism-dependent businesses, including hotel operators and local attractions, are facing the repercussions of this strained diplomatic relationship. The cancellation of travel plans, especially during a traditionally busy period, is impacting the region’s economy.

What Should Travelers Know?

For those planning to visit Japan in the coming months, it is crucial to stay informed about the current political climate and the implications it may have on travel plans. Here are a few tips for travelers looking to navigate this challenging situation:

• Check Flight Status Regularly: Given the uncertainty surrounding flight availability between Japan and China, it is important for travelers to confirm their flights well in advance and remain flexible in case of cancellations.
• Hotel Reservations: Travelers should also verify their hotel bookings, especially in cities like Osaka or Kyoto, where cancellations are prominent. Many hotels are offering flexible cancellation policies due to the ongoing situation.
• Explore Alternative Destinations: If travel to Japan is temporarily disrupted, consider alternative destinations within Asia or other parts of Japan that may not be experiencing the same level of disruption.
• Follow Official Government Guidelines: Both the Japanese and Chinese governments have issued advisories. Keeping an eye on official travel advisories will ensure that travelers have the latest updates about potential risks and travel restrictions.

The Impact of Political Strife on International Tourism

The downturn in Chinese tourism is particularly harmful as China has been one of the largest sources of inbound visitors to Japan. According to reports from earlier years, Chinese nationals accounted for a significant portion of Japan’s tourism revenue, with hundreds of thousands visiting annually. However, in light of political tensions, this key market has all but dried up.

Japan’s tourism sector was beginning to recover from the devastating effects of the COVID-19 pandemic, and the influx of Chinese visitors had been instrumental in this recovery. The ongoing tensions have threatened to undo the progress made, highlighting the vulnerability of the tourism sector to political instability.

While Japan has made efforts to diversify its international tourism base, the Chinese market remains a cornerstone of its inbound tourism strategy. The sharp reduction in Chinese travelers has left a noticeable void, especially in major cities like Osaka and Kyoto, which were among the most popular destinations for Chinese tourists.

Long-Term Implications for Japan’s Tourism Industry

This diplomatic rift is not only disrupting travel plans in the short term but could also have long-term repercussions for Japan’s tourism industry. As China adjusts its travel policies in response to political developments, Japanese businesses dependent on tourism are likely to face continued financial strain.

The situation highlights the significant role of diplomacy in shaping the global tourism landscape. Political tensions between nations have the potential to disrupt not just airline routes and hotel bookings, but the broader hospitality and tourism industry. Japan, with its delicate relationship with China, will have to adopt new strategies to mitigate these impacts and attract alternative sources of visitors.

A Shifting Landscape: What’s Next for Japan?

The future of Japan’s tourism industry will likely hinge on the resolution of the diplomatic standoff with China. In the interim, Japanese tourism officials will need to manage this crisis carefully, employing measures that not only encourage other international travelers but also re-establish trust with Chinese visitors once the political climate improves.

In the meantime, the tourism industry will likely have to adapt to these changing circumstances, relying on domestic tourism and other international markets to balance the loss of Chinese visitors. Additionally, tourism marketing campaigns targeting new regions might provide the necessary boost to help Japan recover from these setbacks.

Travel Tips for Japan Amid Tensions

• Monitor Political Developments: Stay updated on the current political situation between Japan and China to anticipate potential disruptions.
• Book Flights Early: Given the flight cancellations, it’s crucial to book well in advance and remain prepared for potential last-minute changes.
• Consider Local Alternatives: While major cities may be affected, consider visiting other Japanese regions that might not experience as much disruption.
• Flexible Travel Insurance: Ensure that your travel insurance is flexible and covers political unrest and cancellations.