Japan’s tourism sector continued its strong recovery in November despite a diplomatic spat with China that briefly dampened travel sentiment. According to the Japan National Tourism Organisation (JNTO), visitor arrivals rose 10.4% year-on-year in November to 3.52 million, bringing the total for 2025 to over 39 million already surpassing the record 36.87 million visitors in 2024.
Chinese Visitor Growth Slows Amid Travel Warning
While overall numbers remain robust, growth in arrivals from mainland China has slowed sharply. The JNTO reported a modest 3% rise in Chinese visitors in November, a steep decline compared with the 37.5% growth recorded across the year up to that point.
The slowdown follows a diplomatic dispute sparked by Japanese Prime Minister Sanae Takaichi’s comments on Taiwan, which Beijing considers a breakaway province. In response, China’s government urged citizens in mid-November to avoid travel to Japan. Several Chinese airlines soon offered free flight cancellations and refunds through the end of the year.
Tourism Stocks Hit but Travel Momentum Holds
The travel advisory sent shockwaves through Japan’s tourism-related equities. Shares of department store operator Isetan Mitsukoshi (3099.T) and Tokyo Disneyland owner Oriental Land (4661.T) fell sharply after the warning and have yet to fully recover.
Despite the market turbulence, mainland Chinese tourists continue to make up the largest share of Japan’s international visitors, accounting for nearly a quarter of total arrivals so far in 2025. Industry analysts say Japan’s appeal boosted by a weak yen, relaxed visa procedures, and a broad rebound in global tourism has kept demand resilient.
Record-Breaking Year for Japanese Tourism
With one month remaining, Japan is on track for a record-breaking tourism year. Strong inflows from South Korea, Taiwan, the United States, and Southeast Asia have helped offset the slowdown from China.
Travel analysts suggest that while geopolitical tensions may create temporary dips, Japan’s tourism ecosystem has diversified enough to maintain momentum. “The numbers show Japan’s visitor base is expanding beyond reliance on any single country,” said a Tokyo-based tourism economist.
Even amid strained China-Japan ties, the steady inflow of travellers underscores Japan’s growing status as one of Asia’s premier post-pandemic travel destinations.
(with inputs from Reuters)
