Staying in one of Japan’s most popular cities may soon get much more expensive
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Kyoto city plans to hike lodging tax for hotels and other accommodations. The popular travel destination of Kyoto in Japan is significantly raising accommodation tax in an attempt to curb overtourism by reducing visitor numbers. The city plans to raise lodging tax for hotels and other accommodations to a maximum of 10,000 Japanese yen (£52) per person per night – nearly 10 times the current cap of 1,000 yen (£5.20).
The lodging tax will start at 200 yen (£1.04) for accommodations costing up to 5,999 yen (£31.19) a night; increasing to 400 yen (£2.08) for stays priced between 6,000 yen (£31.19) and 19,999 yen (£104); and 1,000 yen (£5.20) for those costing 20,000 yen (£104) to 49,999 yen (£260).
For rooms priced 50,000 yen (£260) to 99,999 yen (£520), the tax will increase to 4,000 yen (£20.79) a night, with the maximum rate set at 10,000 yen (£52) for accommodations costing 100,000 yen (£520) or more. The city plans to implement the new taxes by spring 2026, according to Kyodo News.
Kyoto introduced the tiered accommodation tax system in 2018, charging 200 yen (£1.04) for stays under 20,000 yen (£104), 500 yen (£2.6) for those between 20,000 (£104) and 49,999 yen (£260), and 1,000 yen (£5.2) for accommodations costing 50,000 yen (£260) or more per night.
The new system is projected to boost Kyoto’s lodging tax revenue to over 10bn yen (£52m), nearly double the 5.2bn yen (£27m) collected in fiscal 2023. Kyodo, like many other tourist destinations in Japan, has seen overtourism in recent years. Mayor Koji Matsui earlier said taxes would be raised “to balance tourism and the livelihoods of local residents”.