As tensions between China and Japan escalated following Prime Minister Sanae Takaichi's comments on Taiwan, local reports suggest a sharp decline in Chinese visitors. That decline has sent hotel prices in Japan's top destinations plunging.
According to TBS on the 19th, hotels in Kyoto city are now offering rooms for rent for less than 10,000 yen a night, with some priced as low as 3,000 yen. It's a stunning turnaround for the city, where the average rate hit a record high of 20,195 yen just last year after bouncing back from pandemic lows.
Now, prices have fallen to less than half. And it's not just Kyoto. In Kamakura, near Tokyo, shops famous for premium matcha ice cream say most of their foreign customers used to be Chinese – about 70%. Crowds have dwindled dramatically since Beijing urged citizens to avoid Japan.
Experts attribute the sudden decline in Chinese tourists as the main reason behind the decline in prices. Aviation and travel analyst Kotaro Toriumi said that although the seasonal slowdown plays a role, the sharp decline in Chinese visitors is far more significant. Cities like Osaka, Nagoya, Hiroshima, and Fukuoka – which had a large share of Chinese travelers – are all seeing declines in hotel rates.
Adding to the pressure, Chinese airlines have suspended several routes to Japan, with no plans to resume until at least the end of March. Analysts believe the current low price trend may continue into the spring.
Major Chinese travel agencies have also stopped selling Japan tours, whether group travel or independent travel. Even visa-related services have been halted, with agencies refunding fees already collected.
The numbers confirm this: Of the 5,548 originally scheduled flights from China to Japan in December, 904 were canceled – the equivalent of about 156,000 seats. Overall, 72 routes between the two countries have been cut.
The fallout from this is reflected in Takachi's comments in parliament on November 7 about the "existential crisi". Since then, relations between Beijing and Tokyo have turned sour. Interestingly, when asked if his comments were reckless, 57% of respondents said no, while 37.6% disagreed.
