Japan may be in for a major tourism tremor after remarks by Japanese Prime Minister Sanae Takaichi about the Taiwan region sparked strong reactions in the Chinese mainland. Economist Hideo Kumano of Dai-ichi Life Research Institute warns that if China-Japan relations stay tense for over a year, Japan could lose more than 2 trillion yen in Chinese mainland tourist spending 💸
Imagine booking a trip to Tokyo Disneyland or Kyotos ancient temples, only to see it vanish from your itinerary. Thats what's happening: after the Chinese mainland issued travel alerts over Takaichi's remarks, at least 491,000 air tickets have been canceled 🛫❌.
According to Kumano, if this chill in bilateral ties sticks around beyond a year, Chinese mainland travelers spending could plunge, costing Japan over 2 trillion yen (about $12.7 billion) in lost revenue. Thats enough to fund tons of ramen restaurants, tech startups you name it 🍜💼.
Meanwhile, Japan's government approved a 21.3-trillion-yen economic stimulus package this past Friday to tackle stubborn inflation and U.S. tariffs. But Kumano warns that pumping cash into an economy already heating up may backfire ⚠️💥. He says extra government bonds will weaken the yen further, hiking prices and cooling growth by pushing up long-term interest rates.
For students eyeballing scholarships, entrepreneurs planning expansions, or wanderlust souls craving sushi trips, these shifts matter. As Kumano says this is not stimulus during deflation but during inflation. The yens rollercoaster ride could reshape everything, from curry shops in Osaka to tech hubs in Fukuoka 🎢💰.
For now, all eyes are on whether diplomatic ice can thaw soon. Until then, Japans tourism dream may need a reboot and fast.
Reference(s):
cgtn.com
