With relations between China and Japan plummeting to their worst level in decades, data from Chinese travel platform Qunar shows South Korea replaced Japan as Chinese travelers’ top destination last weekend. Japanese tourism stocks fell Monday, with ANA Holdings dropping 3.8% and Shiseido plunging 11.4%. Six Chinese carriers including Air China and China Southern are offering free refunds for Japan-bound tickets, with Sichuan Airlines canceling its Chengdu-Sapporo route for early 2026. Chinese visitors totaled 7.49 million in the first nine months of 2025, leading all foreign tourists and accounting for 27% of tourist spending. Japan's goal of attracting 60 million tourists by 2030 now faces challenges.