Regional economies have been dealt a blow from plummeting numbers of foreign visitors, largely affected by a ban on group overseas travel by China to curb the spread of COVID-19, the pneumonia-causing coronavirus.

While the government has extended financial support to smaller businesses in the tourism industry, the global crisis could spell disaster for local economies if prolonged.

"We've received cancellations not only from visitors from China, but also from Southeast Asia. With the trend of people avoiding crowds (due to fears of catching the virus), the effects will likely drag on," said a representative of the Hokkaido Bus Association.