11 Jul, 2015
TOKYO – The plunge in China’s stock market and concerns about its economic growth are having effects well beyond the nation’s borders — with shares of Japanese companies that benefit from Chinese tourists also declining.
Tourism has boomed in Japan as the yen has weakened, with visitors from mainland China more than doubling in the first five months of this year. Chinese are the biggest spenders, according to a survey by the Japan Tourism Agency, spending big on everything from heated toilet seats to diamond rings.
As Japan’s own consumers recover from the consumption tax hike last year, spending by foreign tourists was a bright spot for retailers. The loss of $3.9 trillion in Chinese stock wealth this month is raising concerns that fewer tourists will come to Japan — and spend less.