The Lunar New Year, or Spring Festival, is impacting tourism and potentially rare earth supply chains. A significant downturn is being reported at Japanese tourist destinations as the holiday period unfolds.
The traditionally bustling Spring Festival, a major holiday period in China, is experiencing unusual circumstances this year. Japanese tourist locations are reporting a stark change in visitor patterns, with hotels facing significant cancellations.
A hotel boasting popular rooms with views of Mount Fuji, which was filled with Chinese tourists in 2025, is now largely empty.
Hajime Iwasaki, operating director of a group that owns the Fuji Mountain Resort Hotel, stated, “The situation is devastating. Sales are down by tens of millions [of yen].”
Group travel reservations have been canceled across the board. Iwasaki added, “It’s completely dark ahead of us. There’s nothing we can do.”
Airports are also seeing a lack of Chinese group travelers and individual tourists are hesitant to discuss the situation. When asked if the Chinese government’s call to avoid travel to Japan was a factor, one Chinese tourist responded, “I’m sorry, I’d rather not talk about political matters.”
While individual travelers from China are still visiting Tokyo’s Asakusa district, one tourist noted, “I reckon the number of Chinese people has decreased by 50 to 60 percent.”
Statistics released on January 18th showed a 60% decrease in Chinese tourists compared to the previous year. Tourism Agency Commissioner Keishū Murata responded to the decline by saying, “There are reasons for this phenomenon…”
Three months after China issued a warning against travel to Japan, Prime Minister Takagi addressed the issue during a policy speech on February 20th, stating, “We will strengthen measures to address overtourism, such as promoting inbound tourism to regional areas, and promote sustainable tourism.”
The Prime Minister offered limited commentary regarding foreign tourists specifically. The shift in travel patterns is benefiting other Asian nations, however.
During the 2026 Spring Festival period, Thailand has seen a surge in Chinese tourists. One Chinese tourist explained, “The Japanese Prime Minister made radical statements about China.”
The Thai government is actively capitalizing on this opportunity, launching events and initiatives to attract Chinese visitors. This highlights the potential for shifts in tourism revenue as geopolitical factors influence travel decisions.
