Drop in Chinese Tourism Set to Hurt Japanese Retail Sector

(Nikkei Asia) — A decline in duty-free sales at department stores, linked to a sharp drop in Chinese tourists, suggests gloomy prospects for spending by foreign visitors to Japan in 2026, according to industry analysts.

Long viewed as a marker for high-end spending by inbound tourists, duty-free sales at department stores nationwide in December on a same-store basis fell 17.1% year-on-year to 51.9 billion yen ($327 million), showing a second consecutive monthly decline, according to data released Friday by the Japan Department Stores Association.