Kyoto Raises Lodging Tax to Highest Level to Tackle Overtourism

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Japan's Internal Affairs Minister Seiichiro Murakami has approved Kyoto City's plan to raise its lodging tax on hotel and ryokan (traditional Japanese inns) stays. Starting March 1, 2026, guests paying ¥100,000 JPY (about $640 USD) or more per night will face a ¥10,000 ($64) levy, the highest flat-rate lodging tax in the country. The tax will continue to be tiered according to accommodation prices.

Kyoto has experienced a spike in tourism, with over 56 million visitors overall, and a record high 10.88 million foreign visitors coming to see the city in 2024 alone. 

A New Tiered System

With the increase, Kyoto expects its annual lodging tax revenue to nearly double, from roughly ¥5.9 billion ($38 million) in fiscal 2025 to about ¥12.6 billion ($81 million). The city plans to channel the additional funds into measures addressing overtourism and easing congestion in heavily visited areas.

Kyoto first introduced its lodging tax in 2018, becoming the third municipality in Japan to implement such a system. 

The current lodging tax rates are as follows:

1. ¥200 ($1.30) — for stays under ¥20,000 ($130) per person per night
2. ¥500 ($3.20) — for stays between ¥20,000 and ¥50,000 ($130–320)
3. ¥1,000 ($6.40) — for stays above ¥50,000 ($320) per person per night

Under the revised structure, the city will introduce five lodging tax tiers:

1. ¥200 ($1.30) — for stays under ¥6,000 ($40) per person per night
2. ¥400 ($2.60) — for stays between ¥6,000 and ¥20,000 ($40–130)
3. ¥1,000 ($6.40) — for stays between ¥20,000 and ¥50,000 ($130–320)
4. ¥4,000 ($26) — for stays between ¥50,000 and ¥100,000 ($320–640)
5. ¥10,000 ($64) — for stays exceeding ¥100,000 ($640) per person per night

RELATED:

• Survey: Japan Tops List of Countries Tourists Want to Revisit
• Higher Prices for Foreign Visitors: A Good Strategy or Discrimination?
  
  
  

Author: The Sankei Shimbun

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