The popular travel destination of Kyoto in Japan is significantly raising accommodation tax in an attempt to curb overtourism by reducing visitor numbers.
The city plans to raise lodging tax for hotels and other accommodations to a maximum of 10,000 Japanese yen (£52) per person per night – nearly 10 times the current cap of 1,000 yen (£5.20).
The lodging tax will start at 200 yen (£1.04) for accommodations costing up to 5,999 yen (£31.19) a night; increasing to 400 yen (£2.08) for stays priced between 6,000 yen (£31.19) and 19,999 yen (£104); and 1,000 yen (£5.20) for those costing 20,000 yen (£104) to 49,999 yen (£260).
For rooms priced 50,000 yen (£260) to 99,999 yen (£520), the tax will increase to 4,000 yen (£20.79) a night, with the maximum rate set at 10,000 yen (£52) for accommodations costing 100,000 yen (£520) or more.
The city plans to implement the new taxes by spring 2026, according to Kyodo News.
Kyoto introduced the tiered accommodation tax system in 2018, charging 200 yen (£1.04) for stays under 20,000 yen (£104), 500 yen (£2.6) for those between 20,000 (£104) and 49,999 yen (£260), and 1,000 yen (£5.2) for accommodations costing 50,000 yen (£260) or more per night.
The new system is projected to boost Kyoto’s lodging tax revenue to over 10bn yen (£52m), nearly double the 5.2bn yen (£27m) collected in fiscal 2023.
Kyodo, like many other tourist destinations in Japan, has seen overtourism in recent years. Mayor Koji Matsui earlier said taxes would be raised “to balance tourism and the livelihoods of local residents”.
The official 2024 tourism figures for Japan, expected to be released on 15 January, will likely set a record and surpass the 31.9 million visitors recorded in 2019, before the Covid pandemic.
“If things go well, 2024 total will surpass 35 million,” national tourism agency commissioner Naoya Haraikawa said earlier. In the first 11 months, there was a significant increase in visitors from the US, Europe, South Korea, Taiwan, and Hong Kong.
The surge in tourist numbers has been attributed in major part to a weaker yen which has made Japan more attractive to foreign tourists.
While some believe this increase in accommodation tax in Kyodo will alleviate strain on infrastructure, others worry it will push tourists to stay in nearby cities like Osaka and visit Kyoto as day-trippers, potentially undermining the intended effect.
“There are clearly two sides to the argument,” Masaru Takayama, president of Kyoto-based Spirit of Japan Travel, was quoted as saying by the South China Morning Post.
“Yes, overtourism is a problem in many parts of Kyoto and at particular times of the year, but I am sure foreign tourists will very quickly realise they can stay in a neighbouring city or town and just visit Kyoto for the day.
“That will not be good for hotel operators and will not effectively reduce the number of tourists.”
Japan’s internal affairs ministry reports that 11 local governments, including in Tokyo and Osaka, have enhanced accommodation taxes.
Last year, authorities in Fujikawaguchiko, a resort town in the Yamanashi prefecture, installed a large mesh barrier to block the view of Mount Fuji to deter poorly behaved tourists who frequently trespass, litter, and break traffic rules while taking pictures.
Residents had reportedly long been complaining about overcrowding at a spot offering a view of the mountain above a Lawson convenience store where tourists often parked illegally and obstructed pedestrians.
A recent survey showed that over 30 per cent of foreign visitors experienced overtourism issues in Japan in 2024, with congestion at tourist sites being the most common complaint. In response, 60 per cent of respondents said they would be willing to pay higher fees to reduce congestion and help protect resources.
