Japan pivots to broader visitor base as Chinese tourism wanes

A steep drop in Chinese visitors, linked to diplomatic tensions after Prime Minister Sanae Takaichi's comments on a possible Taiwan crisis, has reduced Japan's reliance on that market for the summer season. Despite the decline, total inbound tourism stayed close to record figures, buoyed by rising arrivals from South Korea, Taiwan, other Southeast Asian countries, Europe and the United States, according to the Japan National Tourism Organization.

Visitor expenditures on accommodation and shopping rose modestly, setting a new half-year record in yen terms. Experts note that the diversification of source markets is allowing the sector to maintain momentum without heavy dependence on China. Meanwhile, outbound travel by Japanese residents remains below pre-pandemic levels, with households facing higher costs due to a weak yen and rising fuel prices, prompting the government to lower passport fees to stimulate overseas trips.