"I Used to Visit Often Because It Was Close, but Now 'This' Is Going Up Too?... Japan Responds to Surging Tourists"

Tokyo to Introduce Percentage-Based Accommodation Tax, Replacing Flat Rate
Effective from April Next Year... Private Lodgings Also Subject to Tax

The city of Tokyo, Japan, has finalized a plan to change its accommodation tax for hotel and inn guests from a flat-rate system to a percentage-based system. Although Japan has long been a popular travel destination for Koreans due to its proximity and the weak yen, accommodation costs are now expected to rise.

The photo is not related to the specific content of the article. Pixabay

According to Yonhap News, citing Kyodo News on June 30, Japanese Internal Affairs Minister Yoshimasa Hayashi has approved the Tokyo Metropolitan Government's proposal to revise the accommodation tax system.

Currently, Tokyo imposes a flat accommodation tax of 100 to 200 yen (about 955 to 1,911 won) per night. However, the system will be changed to levy 3% of the room charge as tax. In addition, the exemption threshold will be expanded from stays under 10,000 yen (about 95,500 won) to stays under 13,000 yen (about 124,200 won).

Hotels Charging 15,000 Yen Per Night: Accommodation Tax to Increase from 200 Yen to 450 Yen... Estimated Annual Revenue of 18 Billion Yen

Once the tax is changed to 3% of the room rate, a one-night stay at a hotel costing 15,000 yen (about 143,300 won) will incur an accommodation tax of 450 yen (about 4,300 won), more than double the current 200 yen. The revised system will take effect starting April next year, and private lodgings—including those offered through Airbnb—will also become subject to the accommodation tax for the first time.

In the 2025 fiscal year, the Tokyo Metropolitan Government's tourism policy expenses are projected to reach 30.6 billion yen (about 290 billion won). Under the current accommodation tax system, only 6.9 billion yen (about 66 billion won) could be covered. With the new system, Tokyo estimates that it will collect a total of 19 billion yen (about 180 billion won) annually.

The photo is not related to specific content of the article. Pixabay

Japan Steps Up Response to Overtourism... Expansion of Accommodation Tax

On the same day, seven local governments—including Wakkanai City, Fujiyoshida City, and Nago City—also received approval from the Ministry of Internal Affairs and Communications to introduce new accommodation taxes. These municipalities are implementing either a flat tax of 200 yen per night or a percentage-based tax ranging from 1.2% to 3% of the accommodation fee. As a result, the total number of municipalities operating an accommodation tax in Japan has increased to 62, a significant rise from 17 at the end of last year.

Kyoto, one of Japan's leading tourist cities, previously raised its accommodation tax from a maximum of 1,000 yen (about 9,550 won) to as much as 10,000 yen (about 95,500 won). According to the Mainichi Shimbun, the number of tourists visiting Kyoto reached 62.79 million last year, surpassing 60 million for the first time. Tourism spending also hit a record high of 2.0474 trillion yen (about 19.56 trillion won), exceeding 2 trillion yen for the first time.

Meanwhile, Kyoto is considering a "differential fare system for tourists," which would double the bus fare for tourists to 350 to 400 yen (about 3,344 to 3,822 won), compared to the fare for local citizens, as part of its effort to address "overtourism" (excessive tourism).

This content was produced with the assistance of AI translation services.