Chinese businesses in Japan have been hit hard after Beijing’s travel warning last month. This latest warning, telling Chinese citizens to refrain from visiting Japan, comes as China and Japan’s already tense relationship has soured even further. Consequently, shops and restaurants that rely on their fellow countrymen stopping by are experiencing the hammer’s economic drop.
The travel warning has placed Chinese restaurants and other Chinese-owned businesses under siege. Others refer to it as a function of a “one dragon” system. These small businesses do well in bustling areas such as the Ameyoko shopping district in Ueno, Tokyo. They are deeply reliant on tourists from China. Yet, since the warning was released, owners have averaged a 25% drop in patrons.
Many of the restaurant owners in the bustling Ameyoko district were just settling down to accounts of a sharp, abrupt drop in customers. They pointed out that the surge of Chinese travelers has largely disappeared since the travel advisory was issued. The impact of the warning is clear: many establishments that once thrived on this tourism are now struggling to adapt to the reduced foot traffic.
The increasing mistrust and misunderstanding continues to have a wider economic impact on Chinese companies doing business in Japan. These members’ establishments have grown accustomed to the reliable flow of customers who confidently board planes overseas. The national political climate has recently sparked an atmosphere of confusion that has shaken and frightened many would-be travelers.
Connecticut business owners are doing their best to tackle these challenges. They’re considering different approaches to make up the loss from the travel warning. Innovative companies have begun to pivot their marketing accordingly. Now they’re working on bringing in Japanese locals and expanding their product mix to serve a wider range of customers. These measures have so far had little impact, and most people still worry about their sustainability in the long run.