Kyoto raises hotel tax to ¥10,000 to combat overtourism

The Kyoto city assembly has officially approved an ordinance which will result in an increase of the maximum accommodation tax to ¥10,000 (approx. $67.51 USD/£52.13 GBP) per guest for each night of their stay.

According to information provided by the internal affairs ministry, this new tax amount will represent the highest flat-rate accommodation tax implemented across the entire nation.

Approved by a majority vote on Tuesday, the ordinance now needs approval from the internal affairs minister and it is hoped that it can be implemented to take effect in March 2026.

Popular tourist spots such as Fushimi Inari, pictured, are now often crowded throughout the entire day

Currently, the city of Kyoto imposes an accommodation tax that ranges from ¥200 to ¥1,000 per night for each guest, with the specific tax amount determined by the hotel’s room rates.

Under the newly approved ordinance, the city will be authorized to collect ¥10,000 for hotel stays that cost ¥100,000 or more per night.

In addition to this, the ordinance outlines the following tax rates: ¥200 for stays costing less than ¥6,000, ¥400 for stays costing between ¥6,000 and less than ¥20,000, ¥1,000 for stays costing between ¥20,000 and less than ¥50,000, and ¥4,000 for stays costing between ¥50,000 and less than ¥100,000.

Kyoto residents hope that the increased tax helps to protect the local area by lowering tourist numbers

In the fiscal year 2023, the city of Kyoto’s revenue generated from accommodation taxes reached approximately ¥5.2 billion.

With the implementation of the increased upper limit for the accommodation tax, the city anticipates that its tax revenue will rise to approximately ¥12.6 billion.

Kyoto has plans to allocate a portion of the increased revenue toward addressing the challenges posed by overtourism, specifically focusing on alleviating bus congestion that has arisen due to the significant influx of tourists.

Source: Jiji