Steep drop in Chinese tourists could cost Japan US$9.59 billion a year: economist

The Japanese economy could lose about 1.49 trillion yen (US$9.59 billion) over the next year if travellers from mainland China continue to avoid Japan over a row that has derailed the growth in arrivals seen earlier this year, an economist at the Tokyo-based Nomura Research Institute has projected.

Kiuchi also estimated a loss of 290 billion yen over the next year due to a reduction in the number of travellers arriving from Hong Kong.

“This would result in a significant economic impact,” he said in a research note issued on Tuesday.

The diplomatic row appears to have already had a ripple effect on tourism, as Chinese airlines recorded about 491,000 cancellations of tickets to Japan from Saturday to Monday, according to a veteran aviation analyst.