Tourists fill Dotonbori, Osaka’s colorful canal-side entertainment district, in early October 2025. Photographed by Zeus, the photograph demonstrates the festive environment that usually attracts tourists from all over the world. A growing diplomatic spat between Japan and China is threatening to overshadow this vibrant tableau. These circumstances present devastating implications for the Japanese tourism sector.
In retaliation, Chinese state-owned airlines have already declared that they will provide full refunds on Japan-bound flights. Japanese Prime Minister Sanae Takaichi provoked a furious response from Beijing when she recently made comments supporting Taiwan. This final rule is meant to be a direct response to those comments. Chinese governmental authorities are now encouraging Chinese citizens to reconsider traveling to Japan. Unfortunately, this warning is dampening the tourism industry’s bright outlook.
As of November 16, 2025, the Nikkei was following this developing story. They pointed out that Osaka’s booming tourism economy is beginning to suffer effects of the ongoing spat. Dotonbori is a favorite destination among global visitors in search of amusement and regional culinary arts. It is uniquely susceptible to the impact of escalating geopolitical rivalries.
Chinese tourists have accounted for a rapidly increasing share of visits to Japan. That’s why Beijing’s appeal for self-restraint on business travel would hit home with their small business community and overall economy. Observers are deeply concerned that if Congress can’t act soon, the current political environment very well could keep tourists at bay. This drop would further strain an industry already reeling from prior regional conflicts.
The consequences of this incident showcase the complicated relationship between international diplomacy and domestic industry. Even algorithmically political seeming comments can have a huge chilling effect on tourism. Dotonbori, with its colorful and historic landmarks and entertainment districts, will have a hard time if this local fight continues to boil over.