Kyoto has proposed an increase in its tourist accommodation taxes in a bid to allay local concerns about the negative impacts of overtourism in the popular Japanese city. Announced on 14 January 2025, the plans would see taxes on hotel and other accommodation go up, depending on the price of the room.
How much more will I have to pay?
The revised tax rates will not be applied until 2026 as the move is yet to be approved by the Kyoto city assembly. But, the proposal is a progressive scale of taxation starting at 200 yen (around 1.25€) for stays costing up to 5,999 yen a night; rising to 400 yen (2.50€) for stays priced between 6,000 and 19,999 yen. For rooms costing between 20,000 yen and 50,000 yen per night, the tax rate will be doubled to 1,000 yen (around 6.25€) per person per night.
But it is those staying in upscale rooms priced over 100,000 yen (625€) per night that will really feel the difference. There the tax will increase to the maximum charge of 10,000 yen (62.50€) – nearly 10 times as much as the present upper limit of 1,000 yen (6.25€).
Why the increases?
An official statement explains that the taxes aim to raise revenues to the tune of more than 10 billion yen, twice the fiscal income collected in 2023. That sum is intended to help authorities better manage a tourist industry that some say is out-of-control, while meeting the needs of local residents and businesses.
Overtourism is a well-rehearsed issue in many parts of Japan, where a combination of the weak yen, post-Covid revenge travel and successful destination marketing have brought a surge of visitors, culminating (so far) in a record 35 million tourist arrivals in 2024.
Kyoto is not the only destination grappling with the problem. Officials at Mount Fuji have complained that the volcano and its beloved hiking trails are “screaming” with overtourism – leading to the introduction of entry fees for certain walking routes. Barriers have also been erected in places with scenic views of Japan’s highest peak, to prevent tourists jaywalking and blocking traffic as they attempt to take photographs. Elsewhere, at the floating shrine of Itsukushima, tourist fees have also been applied.
Divided opinion
Part of the problem in Kyoto is tourist fascination with its resident geisha community. Signs have had to be displayed asking visitors to respect their privacy and stay out of certain streets. Many locals will therefore welcome the new taxes as a tool for calming visitor numbers and reducing the burden on local infrastructure. Even some tourists have had enough, with around 30% of them saying they had experienced the crowding or other negative effects of overtourism in a recent survey, and over 60% saying they would be prepared to pay more to avoid such issues.
But not everyone agrees. Some stakeholders have expressed concern that tourists will simply respond by taking their accommodation spend elsewhere, staying nearby in Osaka for example, while still coming as daytrippers to Kyoto. Masaru Takayama, president of Kyoto’s Spirit of Japan Travel, told the South China Morning Post that would be a worst case scenario, which would “not be good for hotel operators and will not effectively reduce the number of tourists.”
