Jakarta, goldensamoyed Indonesia
—
Sector
Japanese tourism
is threatened with major losses after China issued an appeal to its citizens to avoid travel to Japan.
It is estimated that the diplomatic tensions triggered by the Japanese Prime Minister’s statement regarding Taiwan could cost the Japanese economy billions of US dollars.
Just days after China’s travel advisory was issued, a small tour operator in Tokyo,
East Japan International Travel Service
, reported a loss of 80 percent of all bookings for the rest of the year.
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The small company, which specializes in group tours for Chinese clients, is spearheading a backlash that threatens a significant blow to Japan’s economy, the world’s fourth-largest.
“This is a huge loss for us,” said the Vice President
East Japan International Travel Service
, Yu Jinxin, as reported
VN Express
.
Tourism accounts for about 7 percent of Japan’s total Gross Domestic Product (GDP), according to
World Travel & Tourism Council
, and has been a key driver of growth in recent years.
Based on official figures, visitors from Mainland China and Hong Kong account for about a fifth of all tourist arrivals to Japan.
According to Nomura
Research Institute
, this travel boycott could result in losses of around 2.2 trillion yen or around US$14.23 billion or the equivalent of IDR 221.6 trillion every year.
Since the travel warning was issued on November 14, tourism-related stocks in Japan have sunk.More than 10 Chinese airlines have offered refunds (
refund
) for routes to Japan until December 31.One aviation analyst estimated about 500,000 tickets had been cancelled.
The most serious diplomatic tensions between Asia’s top two economies were triggered by statements by Japanese PM Sanae Takaichi.
Last week, Takaichi told Japanese lawmakers that a Chinese attack on Taiwan that threatened Japan’s survival could trigger a military response.
A series of harsh responses from a Chinese diplomat in Japan and Chinese state media aimed at Takaichi prompted Japan to warn its citizens in China on November 17 to increase safety precautions and avoid crowded places.
Beijing demanded that Takaichi withdraw his statement.However, Tokyo said the statement was in line with the government’s position, indicating that no breakthrough was imminent to defuse the crisis.
Tour operator Yu said his company had managed to overcome past turmoil between the two neighboring countries.However, this prolonged crisis could be devastating.
“If this lasts for a month or two, we can overcome it. But if the situation continues to worsen, it will clearly have a big impact on our business,” concluded Yu.
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