Tourism operators across Japan – including those in Okinawa Prefecture – are already feeling the impact of a sharp decline in Chinese visitors. Cancellations and reduced foot traffic are weighing heavily on local businesses, with many owners hoping that the diplomatic tensions triggered by Japanese Prime Minister Sanae Takaichi's remarks on China's Taiwan will ease soon.

Tourism accounts for roughly 7 percent of Japan's GDP, according to the World Travel and Tourism Council. Data from the Japan Tourism Agency show Chinese visitors were the country's top-spending inbound group in 2024. From January to September this year, foreign travelers spent 6.92 trillion yen (about 44 billion U.S. dollars) in Japan, with tourists from the Chinese mainland and Hong Kong contributing about 30 percent of the total.