In Japan, the accommodation tax is a non-statutory tax levied by local governments and its implementation requires the approval of the Minister of Internal Affairs and Communications. Currently, 12 local governments have adopted or are planning to adopt it, and more than 30 are considering it, including Sapporo City and Okinawa Prefecture.
The “overtourism” situation is affecting the lives of local people and has become such a serious problem that authorities are rushing to secure financial resources to cover the costs of countermeasures.
With the rapid increase in tourist arrivals, in addition to promoting tourism, safety measures are also an issue for Japan. According to the Japan National Tourism Organization (JNTO), the number of tourists to Japan in May 2024 was 3,040,100, surpassing the 3 million mark for the third consecutive month.
Japan's accommodation tax is highly expected as a source of revenue to support local authorities.
In a survey of tourists conducted by Recruit, around 70% of local governments and Tourism Development Organizations (DMOs) said that receiving tourists was a problem. Accommodation taxes are highly expected as a source of revenue and will vary by locality but the tax is typically 1 – 3% of the accommodation fee per person/night.
Kyoto City currently charges a tax of 200 to 1,000 yen ($1.25 to $6.26) depending on the cost of lodging. The city's tax revenue for fiscal 2024 is expected to reach about 4.8 billion yen, about 600 million yen higher than fiscal 2019, before the COVID-19 outbreak. The money will be allocated to the construction of a new tourist express bus line, which will start operating in June as a congestion relief measure, and the maintenance of Kyoto Station. As the number of tourists is expected to continue to increase, the government is also considering raising the accommodation tax.
Some local governments are focusing on attracting business travelers and boosting tourism. Fukuoka City collects a total of 200 yen per visitor, including a 50 yen prefectural tax, for one-night stays under 20,000 yen. Tax revenue for fiscal 2023 is expected to be 2.59 billion yen and will be used to attract international events and conferences.
However, the collection of accommodation tax still faces some problems. According to Maki Yamashita, head of the research team at JTB Research Institute, some accommodation operators have expressed concerns that the number of tourists will decrease, while prefectures and cities may also have difficulty coordinating the amount of money to be collected. Therefore, according to Mr. Yamashita, the government should compile guidelines related to the concept of accommodation tax.
