Tensions between China and Japan have risen for more than a month following Prime Minister Sanae Takaichi's comments on Taiwan, with local reports showing a sharp decline in Chinese visitors. Outcome? Hotel rates in Japan's top destinations are falling rapidly.
According to TBS on the 19th, hotels in central Kyoto are now advertising rooms priced below 10,000 yen per night, with some priced as low as 3,000 yen. It's a surprising turnaround for a city that has recently seen record highs.
The average room price in Kyoto reached 20,195 yen last year, the highest since bouncing back from pandemic lows. But rates have fallen to more than half in recent months.
The same trend is being seen in nearby Kamakura, just outside Tokyo. A shop famous for premium matcha ice cream said that about 70% of its foreign customers used to be Chinese. Those numbers have fallen sharply since Beijing urged citizens not to travel to Japan.
Experts attribute the sudden decline in Chinese tourists as the main reason behind the decline in prices. Aviation and travel analyst Kotaro Toriumi pointed out that although the seasonal downturn plays a role, the impact of fewer Chinese visitors is far greater. He said it's not just Kyoto – Osaka, Nagoya, Hiroshima, and Fukuoka are all seeing hotel discounts across the board.
Chinese airlines have suspended several routes to Japan, with no plans to resume until at least the end of March. Analysts expect the current low price levels to persist into the spring.
Major Chinese travel agencies have also stopped selling Japan packages, whether group tours or independent tours. Visa services related to travel to Japan have been halted, and agencies are refunding fees already collected.
The data shows that of the 5,548 originally scheduled flights from China to Japan in December, 904 were canceled - the equivalent of about 156,000 seats. In total, Chinese airlines have cut 72 routes between the two countries.
Relations soured following comments Takachi made in parliament on November 7 about an "existential crisis". When asked about his stance on Taiwan, 57% of respondents said they did not consider his comments reckless, while 37.6% disagreed. Its impact continues on tourism and beyond.
