Japanese Prime Minister Sanae Takaichi’s controversial remarks on China’s Taiwan have triggered significant repercussions across Japan’s tourism and service industries, potentially exacerbating the nation’s economic challenges. The Japan Association of Travel Agents (JATA) revealed that member companies catering to Chinese tourists have experienced a surge in cancellations, particularly for educational and corporate group tours. New inquiries and bookings have also been suspended, with JATA closely monitoring the situation. The downturn follows travel advisories issued by Chinese ministries, citing increased crimes against Chinese nationals in Japan and inflammatory rhetoric from Japanese right-wing groups. Major Chinese airlines are offering free refunds and rescheduling for Japan-bound flights booked before December 31. Flight data indicates that all 12 China-Japan routes were canceled as of Monday, with over 540,000 tickets scrapped since mid-November. The Japan External Trade Organization reported the cancellation of all 24 of its events in China, further straining bilateral relations. Chinese tourists, who constitute a quarter of Japan’s foreign visitors, are pivotal to the economy, contributing significantly to retail, hospitality, and luxury sectors. Experts warn that the decline in Chinese tourism could lead to stagflation, impacting trade, exchange rates, and long-term economic growth. Additionally, the postponement of Japanese films and performances in China underscores the cultural fallout. Chinese Foreign Ministry spokeswoman Mao Ning emphasized the need for Japan to rectify its actions and avoid further provocations.