Japan has approved a major change to its hotel tax in a bid to tackle its rapidly growing overtourism crisis. Following record-breaking numbers of international visitors last year, the country, often dubbed among the world’s friendliest, the Asian country has approved its highest-ever hotel tax in one of its most popular cities.
Last Friday (October 3), Japan’s Ministry of Internal Affairs and Communications confirmed that the levy, first proposed in March this year, will come into effect next year in the iconic city of Kyoto in an attempt to “enhance” its appeal and promote sustainable tourism. This marks the first increase to the hotel tax since it was introduced in October 2018 and is predicted to increase the city’s revenue brought in from accommodation tax from ¥5.2 billion (£25.5 million) to ¥12.6 billion (£61.7 million) – up 142%. Currently, Kyoto’s accommodation tax is capped at ¥1,000 per night (£4.90), but this is all set to change.
The new tax hike is based on the price of tourists’ accommodation, meaning not everyone will be charged the same, reported Euronews Travel. For example, those staying in luxury hotels will be hit hardest, required to fork out ¥10,000 per night (just under £49). Meanwhile, a room costing between ¥50,000 and ¥99,999 (£244.81 – £489.62) will now have a ¥4,000 (£19.59) tax applied per night.
For more budget-friendly accommodation, the lowest tax of ¥200 (£0.98) will be applied for any accommodation priced below ¥6,000 (£29.38).
The accommodation tax is not designed to deter tourists; instead, it is aimed at ensuring that tourists are “bearing the cost of countermeasures against overtourism.” Speaking to Euronews Travel, Nicholas Smith, Holidays Digital Director at Thomas Cook online travel agency said: “In practice, these taxes are rarely meant to discourage travel – they are designed to reinvest in the very things that make cities attractive: cultural preservation, public transport, cleanliness and better visitor management”.
This move comes as authorities attempt to appease frustrated locals amid Japan’s – and Kyoto’s – skyrocketing popularity. In 2024, a record-breaking 36.9 million international visitors flocked to Japan – a 15/6% increase compared to its pre-pandemic record in 2019. Of this total, Kyoto alone recorded a staggering 10.88 million foreign visitors, with foreign overnight stays surpassing Japanese ones for the first time since records began in 1958, according to Xinhua. While this may be a major boost for the country’s precarious economy, it has also caused major problems.
At the end of last year, Kyoto was dubbed the “seventh ring of Hell”, with footage widely shared on social media showing hundreds of tourists packed like sardines on one of its most iconic streets. In one clip, local authorities could be seen trying to direct pedestrian traffic on the historic cobblestone Sannenzaka street in the city’s Higashiyama district, which leads to the famous Kiyomizu-dera Temple.
A French travel YouTuber shared the clip, saying: “Kyoto, what a hell it has become. How can one enjoy one’s visit in such conditions?” Another commented: “I feel lucky to have visited before the tourist explosion”.
Japan is often named as one of the world’s “friendliest countries,” with Kyoto named in Condé Nast Traveller Readers’ Choice Awards 2025 as the tenth friendliest city worldwide with an impressive score of 92.73, replacing Japan’s capital, Tokyo, from 2024.
“Book into an authentic ryokan […] to experience Kyoto’s most endearing hospitality, where guests share home-cooked meals on cushioned floors and communal baths powered by natural springs, before retreating to intimate sleeping spaces lined with snug floor beds,” it wrote.