Japan Tourism Faces $1.2 Billion Hit as Trip Cancellations Spike on China Rift

Japan could lose out on as much as $1.2 billion in visitor spending between now and the end of the year as would-be travelers from China cancel their trips due to a worsening diplomatic spat.

Around 30% of the 1.44 million trips to Japan from China planned through the end of December have been canceled since Beijing advised citizens to avoid traveling to their Asian neighbor, according to figures from China Trading Desk. Roughly 70% of the drop comes from near-term departures being canceled or delayed, while new bookings haven’t materialized, according to the market researcher that specializes in travel data.