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More than a month after China's Ministry of Culture and Tourism advised Chinese nationals to avoid traveling to Japan, Japanese businesses that rely on Chinese tourists are struggling during what should be their peak travel season.
Duty-free sales at major Japanese department stores have suffered a sharp downturn as the number of Chinese visitors continues to fall. At the Daimaru and Matsuzakaya stores operated by J Front Retailing, duty-free sales plunged 17 percent year-on-year, dragging overall monthly sales down 1.9 percent. Other retail giants reported similar declines during the 2026 New Year sales period. According to Japan's leading retailers, the slowdown reflects both reduced travel from China and softer spending by the visitors who do arrive. Industry analysts warn that if visitor numbers continue to slide, the impact on future earnings will be unavoidable.
More than a month after China's Ministry of Culture and Tourism advised Chinese nationals to avoid traveling to Japan, Japanese businesses that rely on Chinese tourists are struggling during what should be their peak travel season.
Duty-free sales at major Japanese department stores have suffered a sharp downturn as the number of Chinese visitors continues to fall. At the Daimaru and Matsuzakaya stores operated by J Front Retailing, duty-free sales plunged 17 percent year-on-year, dragging overall monthly sales down 1.9 percent. Other retail giants reported similar declines during the 2026 New Year sales period. According to Japan's leading retailers, the slowdown reflects both reduced travel from China and softer spending by the visitors who do arrive. Industry analysts warn that if visitor numbers continue to slide, the impact on future earnings will be unavoidable.