China-Japan tensions trigger 500,000 flight cancellations

Diplomatic tensions between China and Japan, the two main Asian economies, show no sign of easing, and tourism flows are the first to suffer.

Nearly 500,000 airline tickets from China to Japan have been canceled following a warning issued by Beijing advising its citizens not to travel to the neighboring country, CE Report quotes ANSA.

The alert comes against the backdrop of a diplomatic escalation triggered by statements from Japanese Prime Minister Sanae Takaichi, who said that Tokyo could intervene militarily in the event of an attack on Taiwan, the island claimed by Beijing as an integral part of its state. According to estimates from aviation-sector analysts, cited by AFP, active bookings fell sharply from 1.5 million on November 15 to just 1 million two days later.

“This is a 33% drop in 48 hours, far beyond the average daily decline of 5% that we have observed since 2023,” Li Hanming told AFP.

The three largest Chinese airlines have announced full refunds for all flights to Japan booked by December 31, and the economic impact is already being felt. Chinese tourists are in fact the main source of visitors to the Land of the Rising Sun, with more than 8.2 million arrivals between January and October—up 40% compared to last year—and in the third quarter alone they spent over one billion dollars per month, accounting for nearly 30% of Japan’s total tourism expenditure.

Earlier this week, stocks in the tourism sector and major retail groups on the Tokyo Stock Exchange suffered sharp declines, anticipating the potential economic fallout. According to the public broadcaster NHK, a prolonged drop in tourist flows from China over one year could result in economic losses of at least 11.5 billion dollars.