Travel & Leisure

Department store tax-free sales fell in December as China arrivals dropped 45%

20260123 Department

Japan’s department stores have been top destinations for Chinese tourists looking for luxury items. (File photo by Katsuyuki Tanimoto) 

YURIKA YONEDA

January 24, 2026 18:30 JST

TOKYO — 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.