Japan’s economy faces mounting pressure as China urges its citizens to avoid traveling to Japan following remarks by Japanese Prime Minister Sanae Takaichi on Taiwan. The advisory has led to mass cancellations of Japan-bound flights and a sharp decline in tourism-related bookings. Tokyo-based East Japan International Travel Service, which mainly serves Chinese group tourists, reports losing about 80% of its bookings for the rest of the year. Tourism contributes roughly 7% to Japan’s GDP, with Chinese and Hong Kong visitors accounting for about one-fifth of all foreign tourists. Analysts at Nomura Research Institute estimate potential losses of around 2.2 trillion yen ($14.23 billion) if the boycott continues. More than ten Chinese airlines have refunded tickets through December 31, with around 500,000 cancellations already reported. The diplomatic standoff has also affected cultural exchanges, with Chinese authorities suspending Japanese film releases and Japanese celebrities publicly reaffirming support for the One-China policy to avoid backlash.