Mount Fuji’s Empty Parking Lots: China’s Tourism Boycott Bites Japan

FUJIYOSHIDA, Japan – The warning signs are stark, plastered in Chinese and English: “Do not stop on the zebra crossing.” But it’s the absence of people that speaks volumes in this normally bustling resort town at the foot of Mount Fuji. A recent diplomatic spat has triggered a sharp decline in Chinese tourists, leaving a noticeable void in Japan’s tourism sector and raising questions about Beijing’s economic leverage.

A Diplomatic Dispute Turns Economic

The trouble began when Japanese Prime Minister Sanae Takaichi suggested Japan could become militarily involved in a potential Chinese attack on Taiwan, calling such a scenario a “life-threatening situation.” China responded with fury, issuing a travel warning urging its citizens to avoid Japan. Almost immediately, Chinese airlines began offering free cancellations and rebookings.

“This is a form of economic coercion,” explains Mong Cheung, a professor of international relations at Waseda University in Tokyo. “For China, it’s an easy way to put pressure on the Japanese prime minister, and it doesn’t cost them much.”

Billions at Stake

The economic impact is significant. In 2024, Chinese tourists spent a staggering 1.73 trillion yen (approximately 9.5 billion euros) in Japan, making them the largest group of foreign visitors. Between January and September, 6.7 million Chinese tourists visited Japan, representing over 23% of the total 28.3 million foreign arrivals, according to the Japan National Tourism Organization.

The impact is already being felt. Chinese airlines have cancelled nearly one in five flights to Japan for December, eliminating over 156,000 seats. Hotel bookings from Chinese tourists have plummeted by more than 50%, with hotels in Osaka reporting declines of 50 to 70% through the end of the year.

“Normally it’s packed here.”

“Especially the large tour operators are suffering,” says travel agent Wangping Aw, gesturing to a parking lot near Lake Kawaguchiko, usually teeming with buses. “Anyone who wants to visit Japan for the first time needs to apply for a visa through a travel agent in China, but travel agents aren’t processing anything right now. So, the people aren’t coming.”

Escalating Tensions, Shifting Strategies

Experts warn this is likely just the beginning. Cheung suggests China has other tools at its disposal, including economic sanctions, restrictions on rare earth materials, and even the potential harassment of Japanese citizens within China. Recent incidents involving Chinese coast guard vessels and aircraft near disputed islands, as reported earlier this week, underscore the escalating tensions.

However, Japan appears resolute. Prime Minister Takaichi has refused to retract her statements, seemingly emboldened by public support. “She’s politically stronger because of her stance,” Cheung notes. “She’s popular with the public and is using this conflict to strengthen her power base.”

Diversifying Tourism, A Long-Term Shift

The Japanese tourism sector is adapting, actively seeking to diversify its customer base and reduce reliance on China. “We are now focusing on Australian, American, and Taiwanese visitors,” Aw explains. “I see colleagues in the industry actively working on that. Ultimately, it’s just smart business not to be dependent on one country.”

While this shift may diminish tourism as a potential pressure point for China, Cheung believes Beijing has ample other means to exert influence. “This dispute could last for at least another year,” he predicts. “But China has plenty of other ways to put pressure on Japan.”