China's Travel Warning Hits Japanese Tourism Hard. Japan’s tourism industry is reeling after China advised its citizens to avoid traveling to the country amid a diplomatic dispute over Taiwan. Tokyo-based tour operator East Japan International Travel Service reported losing 80% of its bookings for the rest of the year, a dramatic hit for a firm that relies heavily on Chinese clients. The travel warning follows remarks by Japanese Prime Minister Sanae Takaichi about Taiwan, prompting flight cancellations, plummeting tourism stocks and an estimated potential loss of 2.2 trillion yen, or $14 billion, annually. More than 10 Chinese airlines have already offered refunds for Japan-bound trips through the end of the year. Tourism accounts for roughly 7% of Japan's GDP, with visitors from mainland China and Hong Kong making up about a fifth of arrivals. While past flare-ups between the two nations have been weathered, business owners warn a prolonged crisis could be devastating for the economy and the travel sector.