Japan Economy News:

https://www.yahoo.com/finance/news/japan-tourist-businesses-hit-chinese-085226920.html

Chinese tourists have always been the largest tourist group, with its large population and close proximity to Japan.

Many Japanese businesses have now become accustomed to the large Chinese middle class who bring their money and spend freely in Japan. The virus situation is definitely going to affect many businesses in Japan that rely on Chinese customers.

This also comes on the heels of the Korea situation, that started this past summer, when Korean tourists started to boycott Japan over some issues. While the number of Korean tourists was always small compared to the Chinese, both countries together will have some kind of affect on Japanese businesses who rely heavily on their neighbors for business.

I am sure even in Yokohama, with the China town being a unique tourist location for some Chinese tourists, they probably are feeling some affect too.

Its now not just the Wuhan area that is not traveling to Japan, but it seems it has now taken its toll on tourists from other parts of China too.

Just how much of an affect remains to be seen. The bigger question is what affect is this going to have if this continues in the late spring and early summer with the Tokyo 2020 Olympics just around the corner.

Japan and Tokyo must be very worried now about how this is going to play out. This is definitely a major challenge that Japan and Tokyo are watching very carefully.

Its one thing to have a month or two or three of reduced tourism, must its completely different matter when you lose not only Chinese tourists but other tourists if this situation continues into the summer.

How many tourists from the Europe,  including the UK, will be willing to travel to Japan, being close to China, if this continues on into the summer.

The Bank of Japan I'm sure, as the news has reported is watching this situation very carefully and how it will play out with the Japanese economy

Japan has invested a lot the past 5 years or more in making tourism a major economic growth industry. Now just as the Tokyo 2020 Olympics are in a few months, the virus situation couldn't have come at a worst time for Japan, not to downplay the huge unfortunate situation for the Chinese people and what they are going through now.

Time will tell if the virus situation can be controlled and damage control can calm potential tourists for the Tokyo 2020 Olympics.

If not Japan is potentially could take a huge hit in its economy. But maybe not?

© 2020, Tom Metts, all rights reserved