Japan-China relations have soured following Japanese Prime Minister Takaichi’s remarks on Taiwan on November 7. The number of Chinese visitors to Kyoto has dropped, forcing hotels to lower prices due to intensified competition.

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We visited Kyoto on the evening of December 25. 

NTV Reporter / There are many traditional restaurants on this street, and it is packed with foreign tourists.

Although we saw many international travelers…

Kyoto Cuisine Restaurant Manager / I think we've seen fewer large Chinese tour groups over the past 3-4 months. 

Japan-China relations have soured following Japanese Prime Minister Takaichi’s remarks on Taiwan.

We found out on December 25 that the Chinese government issued a new directive to domestic travel agencies.

It directed them to reduce the number of travelers to Japan to 60% of previous levels.

Beijing Airport

The government gathered representatives from multiple major travel agencies and instructed them not to disclose the information. Following the instruction, travel agencies have reportedly suspended accepting group bookings.

Kyoto - December 25, 2025
 
Chinese tourists accounted for the largest share of foreign visitors to Kyoto in 2024. The hotels in the area are going through an unusual change.

NTV Reporter / How much is this hotel per night now?

Hotel staff /  It’s around 8,000 to 9,000 yen per night. Last year it was about 12,000 to 14,000 yen, so it's become significantly cheaper.

Previously, about 30% of guests were Chinese tourists.

Hotel staff / Since mid-November, we've received many cancellation calls from Chinese guests. They said they wanted to cancel because of China's social situation.

Chinese guests make up less than 10% in the hotel now. There are many vacant rooms as well.

Hotel staff / We're lowering prices to attract guests, especially domestic customers.

NTV Reporter / How do you feel about lowering prices?

Hotel staff / Honestly, we'd prefer to charge a bit more. As inbound tourists have been increasing, rates should ideally rise accordingly. Lowering the price so much is unprecedented, and it is frankly very frustrating.

We interviewed multiple hotels in the city of Kyoto. 

They told us that the price competition was intensifying, forcing them to lower rates. Some also said that their hotel was fully booked last year around the same time of the year, but this year they had vacant rooms.

Japanese tourists were benefiting from the change. 

Tourist / We paid 26,000 yen for two people, three nights and four days.

Tourist / I was surprised! I thought that might be the price for one night, but it was for three nights.

Tourist / I had the impression Kyoto was expensive overall, but when I looked for hotels, it was actually quite affordable.

They were happy about the lower prices.

More hotels in Kyoto have been shifting their target to Japanese travelers.

When the Chinese government urged its citizens to refrain from traveling to Japan in November 2025, the number of Chinese tourists to Japan dropped to 560,000, making it the lowest monthly figure this year.

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We asked Chinese locals what they thought. 

Beijing citizen / I wanted to go to Japan because of Japanese anime. Due to the China-Japan situation, my travel plans have been indefinitely postponed.

Beijing citizen / My kid said visa applications are difficult, so I decided not to travel to Japan. I’ll go to Hainan Province for a few days instead.

Some said they will hold off on traveling to Japan.

In February 2026, China will celebrate the Lunar New Year, when Chinese tourists typically travel en masse.

This hotel in Kyoto held expectations. 

Hotel staff / During the winter season, many Chinese travelers typically come to Kyoto including the Lunar New Year season. I just want many visitors to stay at our hotel. That’s all I wish for.