Accommodation Tax: Clarify Necessity and Purpose for Introducing Levy on Travelers

Editorial

15:48 JST, December 19, 2025

In response to an increasing number of foreign tourists to Japan, more moves are being made in which local governments introduce an accommodation tax to secure their own revenue sources. It is essential to clarify the objectives and effects of such tax — why it is necessary and how the revenue will be used.

The accommodation tax is a type of tax that local governments can introduce by specifying in their ordinances the purposes, tax rates and tax amounts, with the consent of the internal affairs and communications minister.

This tax is levied on guests staying at hotels, ryokan Japanese-style inns and other establishments. The Tokyo metropolitan government was the first to introduce it in Japan in 2002.

Since then, its adoption has progressed, primarily among local governments in tourist destinations such as the cities of Kyoto and Kanazawa. Starting on Dec. 1, Hirosaki in Aomori Prefecture and Matsue, the capital of Shimane Prefecture, began collecting ¥200 per person per night. Miyagi Prefecture and others plan to introduce it in the future.

The central government has also collected an International Tourist Tax of ¥1,000 per person upon departure from Japan since 2019. This is because, while it costs money to establish systems to accept tourists, such issues as congestion in public transportation systems and an increase in garbage have become apparent, requiring the government to deal with them.

Many local governments face declining populations and shrinking tax revenues. The introduction of the accommodation tax, with which they can secure their own financial resources without increasing residents’ burdens, is likely to expand further.

Some local governments that have already introduced the tax are also moving to raise the tax amount.

The Kyoto municipal government currently collects up to ¥1,000 per person per night based on lodging expenses, but it plans to raise the maximum tax amount to ¥10,000 starting in March next year. The Tokyo metropolitan government has also announced a plan to change its current collection of ¥100-¥200 per person per night to 3% of the lodging expenses, expanding the tax to include minpaku private lodging services that rent houses and apartments to foreign tourists and others as accommodation facilities.

However, since the accommodation tax is added to lodging expenses, it would be perceived by tourists as an increase in lodging expenses, possibly leading to a loss of customers. Lodging business operators responsible for collecting the tax are concerned about more burdens such as seeking understanding of the tax from guests, in addition to paying the collected tax.

Casually introducing the tax simply because neighboring local governments have done so, or using tax revenues for measures with limited effectiveness, are moves that cannot win public understanding.

When first introducing the tax, local governments should thoroughly discuss with residents and accommodation providers such matters as the necessity of the tax and the tax amount. When doing so, it is also crucial to present what the tourist industry should be like and a future vision of the region.

School trips and stays with lodging expenses below a certain threshold should also be exempt from taxation. Measures such as temporarily suspending tax collection must be considered in the event of a sudden drop in the number of visitors to Japan due to situations such as the COVID-19 pandemic or changes in the international situation.

After introducing the tax, it is essential for operators to enhance transparency regarding the purposes for its use. Continuous review is required as to matters such as whether the tax amounts are appropriate and whether it is genuinely supporting the tourist industry.

(From The Yomiuri Shimbun, Dec. 19, 2025)