Tourism Kyoto to hike accommodation tax to ¥10,000 per night

Kyōto announced plans to significantly increase its accommodation tax to a maximum of ¥10,000 per night, the highest in Japan. This move aims to address overcrowding and improve city infrastructure amid concerns about overtourism. While Kyōto has collected an accommodation tax since 2018, the previous cap was only ¥1,000 per person per night. Mayor Matsui Kōji stated on Tuesday that the city seeks to balance the needs of residents with the benefits of tourism. He emphasized that tourism directly impacts the quality of life for citizens and that it's essential for both residents and tourists to contribute to the costs associated with managing tourism's impact.

With the number of tourists, especially from overseas, continuing to rise since the reopening of borders following the COVID-19 pandemic — and partly due to the weaker yen — overtourism in the region has become a growing problem. According to the most recent numbers from the city, over 50.28 million people visited the city of Kyoto in 2023, with around 14.75 million staying overnight. The city had been in talks with experts since last year about plans to increase the upper limit. The collected money under the new plan, which would allow accommodations to charge up to ¥10,000, would be used to improve infrastructure in the city, such as increasing public transportation in the area and efforts to conserve traditional buildings unique to the city.

Click to expand...

The accommodation tax will be adjusted based on the cost of the stay. While budget-friendly stays under ¥6,000 per night will maintain the current ¥200 tax, higher-priced accommodations will increase levies. These range from ¥400 for stays between ¥6,000 and ¥19,999 to a maximum of ¥10,000 for stays exceeding ¥100,000 per night. Importantly, educational trips for middle and high school students will be exempt from this tax increase. The city plans to implement these changes in March 2026.

Out of curiosity, I checked out what the hotels are currently charging for the tax. This is from Hotel Okura in Kyoto. I wonder when the new tax rate will go into effect.

【注意事項】
宿泊税は含まれておりません。別途ホテルにてお支払いください。

京都市条例により、1人1泊あたり宿泊税（20,000円未満:200円、20,000円以上50,000円未満:500円、50,000円以上:1,000円）別途ご負担いただきます。

Click to expand...

At first I thought it would have a large impact and maybe convince people to stay outside the city but the Y10,000/night fee is only for people paying ¥100,000/night. But it should give the city a nice boost in revenue. Maybe they can hire more bus drivers.

When I was there and cycled the area and I found the city... well, it just was just too commercial to really enjoy the peace and quiet of old Japan culture.

musicisgood said:

When I was there and cycled the area and I found the city... well, it just was just too commercial to really enjoy the peace and quiet of old Japan culture.

Click to expand...

There are a few cultural gems in the northern and eastern hills around the city, which - when we cycled there ages ago - were not overrun with tourists. Things might have changed, though.

The Minister of Internal Affairs and Communications approved Kyoto's revised proposal to levy higher tax rates on tourists spending more than 6,000 yen per night.

Beginning 1 March, the city will introduce a revised accommodation tax aimed at reducing the impact of heavy tourist numbers. The levy, currently set at 1,000 yen, will rise to as much as 10,000 yen (about $63.80) per person per night. Revenue will be directed towards infrastructure improvements and measures to ease congestion. Under the staggered system, the maximum rate of 10,000 yen will apply to hotel stays priced at 100,000 yen or more per night. The Ministry of Internal Affairs and Communications approved the revision on 3 October, noting that the new charge will be the highest of its kind in Japan. Municipal authorities have cited growing strain from overtourism, pointing to overcrowded buses, congested streets and pressure on historic sites as reasons for the change.

The new tax rate per person per night will remain at 200 yen for stays under 6,000 yen. For stays ranging in price from 6,000 yen to less than 20,000 yen, the levy will increase from 200 yen to 400 yen. For stays ranging in price from 20,000 yen to less than 50,000 yen, the levy will increase from 500 yen to 1,000 yen. For stays of between 50,000 yen and less than 100,000 yen, the rate will jump from 1,000 yen to 4,000 yen. For stays costing 100,000 yen or more, the levy will go up from 1,000 yen to 10,000 yen. School trip students and chaperones will remain exempt as before.

Click to expand...

This is just for the city of Kyoto, or for the entire fu (prefecture)?

It seems to apply only to Kyoto City. From the article above:

Desperate to thin out tourist crowds here, the city government will slap visitors with an accommodation tax of up to 10,000 yen ($68.3) per person per night, starting 1 March.

Click to expand...

50 quid a night is not an insignificant amount of tax. Would this apply to AirB&Bs?