China has ordered its airlines to further curtail flights to Japan, widening the scope of travel restrictions against its neighbor as diplomatic frictions intensify. The situation could benefit other countries in the region, especially Thailand, that has already reaped gains since the travelling warning issued by the Chinese authorities two weeks ago.
According to people familiar with the matter cited by Bloomberg, Chinese carriers were recently instructed to scale back flight schedules to Japan through late March, coinciding with the aviation industry’s seasonal transition. Airlines have been given some leeway in selecting which routes or frequencies to cut, but the directive immediately adjusts the balance of air travel in the region.
This sustained pressure on travel, following China’s earlier advisory warning its citizens against trips to Japan, is already generating positive momentum for Thailand. The reduced flow of Chinese tourists to Japan could translate into increased interest in Thailand, with analysts expecting gains for local industries such as tourism, aviation, retail, and healthcare. The Airports of Thailand PCL (SET: AOT), The Erawan Group PCL (SET: ERW), and Central Plaza Hotel PCL (SET: CENTEL) are highlighted as potential beneficiaries of redirected Chinese tourist demand.
The impetus for these latest restrictions stems from recent remarks by Japanese Prime Minister Sanae Takaichi, who suggested that Japan may consider a more assertive military stance in response to an event if Japan was impacted by Chinese military operations on Taiwan. Her comments have heightened diplomatic strains between Beijing and Tokyo, fueling China’s decision to escalate its travel measures.
In another sign of deepening discord, Beijing has also announced a ban on imports of Japanese seafood. The step further disrupts economic ties between Asia’s two largest economies and signals that China is bracing for a prolonged period of strained relations with Japan.
