The Japanese prefecture of Okinawa is experiencing a significant downturn in tourism, with ferry ports and local businesses already feeling thing impacts. The drop comes after recent remarks on China's Taiwan region by Japanese Prime Minister Sanae Takaichi, which drew criticism at home and heightened concerns about diplomatic relations with China. Multiple Chinese ministries have issued travel alerts, advising Chinese citizens to avoid traveling to Japan in the near term. Major Chinese airlines have subsequently announced free refunds or rescheduling for Japan routes booked before Dec 31. Since November 15, Chinese travelers have canceled more than 540,000 tickets to Japan, and refund requests continue to rise. Many travel agencies in China have already scrapped group tours for November and December. The cancellations and decreased foot traffic are hitting local businesses hard. Hotels, restaurants and shops are experiencing a decline in customers, with some group tour reservations and bookings falling through entirely. Business owners in the prefecture have expressed hope the tensions will ease. "Honestly, yes, I'm a bit worried about the political situation. But I also think things will go back to normal. I feel like this might just be temporary, so I'm not too concerned," said business owner Naoko. "Honestly, China is probably the most important country for Japan in terms of both imports and exports. If Japan lost China, the economy would collapse. So, I don't think things will escalate into a real conflict," said Yukihiro Iha, another business owner. Tourism accounts for roughly 7 percent of Japan's GDP, according to the World Travel and Tourism Council. Data from the Japan Tourism Agency show Chinese visitors were the country's top-spending inbound group in 2024. From January to September, foreign travelers spent 6.92 trillion yen (about 44 billion U.S. dollars), with Chinese tourists accounting for about 30 percent. Nomura Research Institute estimates China's travel alert could wipe out 1.79 trillion yen (about 11 billion U.S. dollars) in tourism revenue over the next year, cutting Japan's GDP by 0.29 percent. SHOTLIST: Okinawa, Japan - Nov 25, 2025 1. Various of cruise ship at port; 2. Ticket office; 3. Man entering ticket office; 4. Screen with words reading "Tokashiki Island"; 5. Ship at port; 6. Tourists; 7. Pedestrians; 8. Banner of tax-free shop; 9. Sign with words reading "Alipay accepted here"; 10. Various of shopfront, pedestrians; 11. Naoko, business owner, talking with customer; 12. SOUNDBITE (Japanese) Naoko, business owner (starting with shot 11/ending with shot 13): "Honestly, yes, I'm a bit worried about the political situation. But I also think things will go back to normal. I feel like this might just be temporary, so I'm not too concerned."; 13. Various of Yukihiro Iha, business owner, greeting pedestrians; 14. SOUNDBITE (Japanese) Yukihiro Iha, business owner (starting with shot 13): "Honestly, China is probably the most important country for Japan in terms of both imports and exports. If Japan lost China, the economy would collapse. So, I don't think things will escalate into a real conflict."; 15. Various of pedestrians, shopfront,; 16. Sign with words reading "welcome to Okinawa". [Restrictions: No access Chinese mainland]