Tensions Hit Tourism and Luxury Retail.

New data reveals a sharp decline in Chinese tourism, with department store sales to Chinese visitors dropping 40% in December. This slump follows a period of heightened tension after PM Takaichi’s comments regarding Taiwan earlier in the year, which led Beijing to advise its citizens against traveling to Japan. While Japan saw a record 42.7 million total international visitors in 2025, the loss of high-spending Chinese tourists is significantly impacting the luxury goods sector, including high-end watches and fashion.

©YovaniBernard