With the sharp drop in the number of South Koreans visiting Japan due to deteriorating bilateral relations, the regional economies of Kyushu and Okinawa are said to be suffering hard.
According to the Nihon Keizai Shinbun, the amount of orders received for Korean group tours in Okinawa fell 80 percent on-year for August, and 90 percent for September.
Many Korean travel agencies are shutting down their offices and cutting the number of employees.
Flights to cities in Kyushu have also dropped significantly.
Both areas are also seeing sharp cuts in the number of hotel reservations and duty-free sales.
Okinawa and Kyushu had been popular tourist destinations for South Koreans and both areas are highly dependent on tourism.