"Suddenly Asking for 10 Times More"... Places Pushing to Raise Accommodation Tax to Up to 92,000 Won

Japan Sees Surge in Foreign Tourists, Many Local Governments Push for Accommodation Tax Increase and New Implementation

Kyoto City, Kyoto Prefecture, a historic and tourist city representing Japan, plans to raise the maximum lodging tax per night imposed on hotel and inn guests from the current 1,000 yen (about 9,200 won) to 10,000 yen (about 92,000 won), Yomiuri Shimbun reported on the 7th.

Kyoto City plans to impose a lodging tax of 10,000 yen if the overnight accommodation fee exceeds 100,000 yen. Photo by Getty Images

According to the report, Kyoto City intends to submit a revision bill related to the lodging tax ordinance to the city council as early as next month.

If the revision is approved, the new lodging tax will be applied as early as next year. Since October 2018, Kyoto City has imposed a lodging tax ranging from 200 to 1,000 yen (about 1,840 to 9,200 won) per person per night based on the lodging fee.

Currently, the lodging tax is 200 yen if the lodging fee per night is less than 20,000 yen. If the lodging fee is between 20,000 yen and less than 50,000 yen, the tax is 500 yen, and if the lodging fee is 50,000 yen or more, the tax is 1,000 yen. Kyoto City plans to subdivide the current three-tier lodging tax system into five tiers and impose a lodging tax of 10,000 yen for lodging fees exceeding 100,000 yen per night.

Pixabay

Accordingly, travelers staying at luxury accommodations are expected to pay significantly higher lodging taxes than before.

Koji Matsui, the mayor of Kyoto City who took office in February last year, has announced plans to raise the lodging tax to improve environmental maintenance amid the increase in tourists. Kyoto City's lodging tax revenue for fiscal year 2023 (April 2023 to March 2024) reached a record high of 5.2 billion yen (about 47.8 billion won). Yomiuri reported that if the increase is finalized, the annual revenue is expected to rise to 10 billion yen (about 92 billion won).

In Japan, as the number of foreign tourists rapidly increases, more local governments are pushing to raise or newly introduce lodging taxes.