Tourism Izu to introduce 'tourism tax' for day-trippers and overnight visitors

To boost tourism, the seaside resort town of Izu is considering introducing a "tourism tax" for overnight visitors and day-trippers. During a press conference last week, Mayor Yutaka Kikuchi expressed that establishing a dedicated tax would benefit urban development through tourism. Izu's approach is uncommon, especially as many regions have implemented tourism taxes to fund promotional activities. The city plans to refine the system in consultation with stakeholders and introduce the tax in fiscal 2028. Instead of raising the existing bathing tax, Kikuchi explained that the city intends to implement a separate tourism tax to meet its needs.

Currently, around 50 million yen ($334,000) out of the 110 million yen collected from the bathing tax, which is primarily intended for the maintenance of hot spring facilities, is being redirected to promote tourism. "It's better to properly explain the purpose of the tax to the tourists who are being taxed," Kikuchi said. He added that the responsible department has been considering the tourism tax since fiscal 2024. The city plans to introduce tiered tax rates for accommodations due to the varying price ranges among facilities. It is considering a fixed rate for day visitors, with the tax being possibly collected at large tourist facilities and parking areas within tourist zones.

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According to the city's Tourism and Commerce Department, around 760,000 people stayed overnight in fiscal 2023, while the total number of tourists was around 3.5 million.