Kyoto authorities plan to raise the tourist lodging tax tenfold

Kyoto city authorities have proposed raising the accommodation tax on tourists to reduce the negative impact of mass tourism on the local community. These plans, unveiled on 14 January 2025, involve increasing taxes on hotels and other types of accommodation, depending on the cost of the stay.

What will change?

The tax rate increase will only take effect in 2026, as the decision still needs to be approved by Kyoto's city assembly. Under the proposal, the tax will be progressive:

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• For accommodation costing up to 5,999 yen per night, the tax will be 200 yen (about €1.25).
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• For rooms priced from 6,000 to 19,999 yen — 400 yen (€2.50).
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• If the nightly rate falls between 20,000 and 50,000 yen, the tax rises to 1,000 yen (about €6.25).
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• For suites costing more than 100,000 yen (about €625), the tax will rise to a maximum of 10,000 yen (€62.50), almost 10 times higher than the current cap of 1,000 yen.
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Why is the increase needed?

According to official figures, the new taxes will boost the city's revenue by more than 10 billion yen — double what was collected in 2023. These funds will go toward managing the tourism sector, addressing overcrowding, and supporting local residents and businesses.

The problem of mass tourism has become pressing for many regions of Japan. A weak yen, rising tourist numbers after the pandemic, and a successful marketing strategy drove a record 35 million arrivals in 2024. Kyoto is not the only region looking for ways to manage the influx of tourists. On Mount Fuji, for example, an entry fee was introduced for popular trails, and barriers were installed to prevent dangerous tourist behaviour. The famous floating shrine on Itsukushima has also started charging an admission fee.

Opinions are divided

One source of Kyoto's problems has been tourists' fascination with the local geisha. To protect their privacy, signs had to be put up banning access to certain streets. Local residents largely support the new tax, seeing it as a way to reduce tourist numbers and ease pressure on city infrastructure. Even among tourists themselves, around 30% report being inconvenienced by overcrowding, and more than 60% say they are willing to pay more to improve the situation.

However, not everyone agrees with the changes. Some experts believe tourists will simply choose cheaper accommodation, for example in neighbouring Osaka, and only come to Kyoto for day trips. Masaru Takayama, president of Spirit of Japan Travel, warned that such a scenario could harm the local hotel industry without actually reducing tourist numbers.