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The Japanese government recently approved Kyoto’s proposal to implement what is, to date, the country’s highest-ever hospitality tax.
The former capital which is also considered one of Japan’s cultural epicentres will begin to charge up to US$68 a person per night at luxury hotels within its jurisdiction beginning March 2026.
This new tax is the latest in a long line of measures proposed to curb overtourism in the country.
Per a report from the South China Morning Post, the Japanese Ministry of Internal Affairs and Communications green-lighted the proposal on 3rd October.
How much?!?
According to a report from Japanese broadsheet Asahi Shimbun, this new taxation scheme ranges from 200 yen for budget accommodation to 10,000 yen for stays priced above 100,000 yen per night.
That said, it certainly goes well-above the country’s current maximum levy of 1,000 yen.
Still, the money earned from such taxes will go to a good cause: the continued development of Kyoto as one of Japan’s cultural hubs.
As Kyoto mayor Koji Matsui puts it: “Tourists also must bear the cost of countermeasures against overtourism. Kyoto is going to use revenue from the accommodation tax to build a sustainable tourism city, which must be good for both tourists and Kyoto citizens.”
This does not, however, mean that the tax has been universally accepted even by Japanese nationals; indeed, some critics see the tax as a deterrent that will drive travellers away from Kyoto and into neighbouring cities like Osaka, thus depriving the city of revenue.
Nevertheless, city officials have been quick to say that the new tiers are proportionate, with the lowest rate unchanged for budget travellers and the steepest increase reserved for luxury accommodations.
It has been projected that the taxes earned will come to double Kyoto’s annual revenues from 5.91 billion yen to a staggering 12.6 billion yen once the measure is implemented.
All proceeds will go into ways of mitigating the impact of overtourism on local infrastructure and to improve the overall tourist experience within the city.
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Source: traveldailymedia