Foreign visitors to Japan decline 3.6% in May as Chinese tourism plummets

The number of foreign visitors to Japan fell 3.6 percent year-on-year in May to 3.56 million, marking the second consecutive month of decline, according to data released by the Japan National Tourism Organization on Wednesday. The overall decline was driven primarily by a sharp drop in Chinese visitors, whose arrivals plunged 60.4 percent to 313,000, extending a downward trend now spanning six consecutive months. The deterioration in Chinese tourism follows remarks made by Japanese Prime Minister Sanae Takaichi in November regarding Japan's potential involvement in an armed conflict over Taiwan, which has strained diplomatic relations between the two nations.

The decline in Chinese visitors has created headwinds for Japan's retail, accommodation, and catering sectors. However, the impact has not been uniform across all markets. Visitors from the United States and most European countries showed growth during the period, suggesting limited disruption from Middle East tensions. By country and region, South Korea led visitor arrivals with 951,300 travelers (up 15.2 percent), followed by Taiwan with 616,800 (up 14.6 percent) and the United States with 333,700 (up 7.0 percent). China ranked fourth. European nations including Britain and Germany also saw increases, with British arrivals rising 6.0 percent to 55,200 and German arrivals climbing 18.8 percent to 50,200.

Middle East visitor numbers rebounded significantly, jumping 67.8 percent to 39,000 in May following declines in April amid regional conflicts. The timing of Islamic holidays, which fell in May this year rather than June, contributed to the regional increase despite some flight disruptions affecting certain countries. Meanwhile, Japanese airlines have raised fuel surcharges in response to elevated fuel prices. Japan Tourism Agency commissioner Shigeki Murata cautioned that forecasting the full impact on inbound tourism demand remains difficult given current uncertainties.