News Osaka to introduce fixed fee for inbound tourists

Osaka Prefecture is exploring the possibility of implementing a fixed fee for foreign visitors, with the potential timing coinciding with the commencement of the World Exposition in western Japan in April 2025. The primary purpose of this fee would be to address the challenges over-tourism poses. Local Japanese governments currently have no specific taxation scheme targeting foreigners, as confirmed by the Ministry of Internal Affairs and Communication.


The ministry must obtain the internal affairs minister's consent to establish such a system, and the fee structure's precise details are yet to be finalized. The prefectural government faces additional hurdles, including ensuring the levy system aligns with the country's existing tax conventions. Osaka Governor Hirofumi Yoshimura emphasized the desire to enhance the coexistence between foreign visitors and residents through town beautification efforts. A panel is set to convene in April to discuss this matter further.

Osaka Prefecture already imposes an accommodation tax ranging from 100 to 300 JPY on room fees exceeding 7,000 JPY per night, applicable to both Japanese and foreign guests. Governor Yoshimura hinted that the proposed fixed fee would likely be in a similar range. Given the upcoming plans for an integrated resort featuring casinos on Yumeshima (an artificial island in Osaka Bay and the venue for the 2025 Expo), the prefecture aims to mitigate the impact of over-tourism.

Osaka currently imposes an accommodation tax of JPY100 (USD 0.70) to JPY300 on domestic and international guests staying at lodgings costing ¥7,000 or more per night. The governor indicated that the proposed fee was expected to be around the same amount. Yoshimura said that with plans for a casino resort on artificial island Yumeshima, set to open around the fall of 2030, Osaka must implement measures to address the potential impact of overtourism. This artificial island in Osaka Bay is also set to host the 2025 expo. Many countries are considering collecting fees to counter overtourism, including Thailand, though the country postponed its plan last year. In February, Indonesia's Bali Island started imposing a fee of 150,000 rupiah ($9.60) per person for foreign tourists visiting the island.

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By the way this is presented, it seems to imply that this tax would be assessed at hotels and other such places. So it remains to be seen whether this will apply to all foreigners, or whether legal alien residents will be exempt and how to claim said exemption. Even if there is an exemption, if this is enacted I foresee hotels not regularly not granting the exemption, either due to ignorance (willful or otherwise), distrust that the exemption truly should apply, or even spite or prejudice. I would think that the last reason would be of very low incidence; however, we're all human, and unfortunately it can never be completely ruled out.

I love Osaka, but this is one time where I don't agree with the proposed policy. I would rather see much smaller similar tax being applicable to everyone, rather than singling out a certain population.