Tax-Free Sales by Chinese Shoppers at Japanese Department Stores Drop 40% Last Month

The number of Chinese visitors to Japanese department stores and their tax-free purchases in December last year saw a significant decline compared to the previous year. This is believed to be the result of China's advisory against travel to Japan.

Japanese Yen. Yonhap News Agency

On January 23, Nikkei reported that sales from tax-free purchases by Chinese visitors at Japanese department stores last month fell by 40% year-on-year. The Japan Department Stores Association also announced that total tax-free sales in December declined by an average of 17.1% over the same period.

The Japanese travel advisory issued by the Chinese government in November last year is seen as the main factor. According to statistics from the Japan National Tourism Organization (JNTO), the number of foreign visitors to Japan last month was 3,617,700, an increase of 3.7% compared to the previous year. In contrast, the number of Chinese visitors (330,400) dropped by 45.3% during the same period.

The Japan Department Stores Association stated, "We expect the challenging situation to continue for the time being."