Newscasts - Japan-China rift already causing ‘huge loss’ for Tokyo tour firm
18/11/2025 16:28
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_ig7q3aa1&referenceId=tag:reuters.com,2025:newsml_RW290518112025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: When tensions started flaring up again between Japanese and Chinese governments last week, it was still business as usual for Tokyo-based tour operator East Japan International Travel Service. Fiona Jones reports. Short Link: https://lseg.group/3LEicQt Video Transcript: It was business as usual for this Tokyo-based tour operator until a major diplomatic clash deepened between Japan and China. And once Beijing urged its citizens not to travel to Japan, East Japan International Travel Service’s Vice President Yu Jinxin said cancellations began to climb. During this period, the impact has actually been quite huge. Yesterday, we had about six group bookings cancel on us, which is roughly 10%. Today, ten more canceled on us, so in total, about 20 bookings have already been canceled. This accounts for about 80% of our market this year. The company itself mostly relies on Chinese clientele, specializing in tours for cultural, corporate, and government exchanges. Yu explained that these trips are strained by the growing rift between the two powers. First of all, this is a huge loss for us. Additionally, our fixed monthly expenses are about JPY10 million. If this lasts for one or two months, we can manage. But if the situation continues to worsen, it will obviously have a major impact on our business operations and management. The impact will fall on more than one tour operator and could deal a blow to Japan's economy. Official data shows Chinese people form the largest number of tourists to Japan, accounting for nearly a quarter. After China's travel announcements, tourism-related stocks in Japan plunged. Chinese state media said over ten of the country's airlines have offered refunds on Japan-bound routes until December 31. Japanese Prime Minister Sanae Takaichi sparked the dispute after suggesting that a Chinese attack on Taiwan could trigger a military response from Tokyo. Beijing asked Tokyo to retract the comments, but an official suggested Tokyo was in no mood to do so. A Japanese envoy met his counterpart in Beijing on Tuesday to try to dispel tensions, but there were no signs of breakthrough.