December 3, 2024
Japanese Cities, Including Hokkaido, Beppu, and Shizuoka, Raise New Tax to Support Conservation Efforts Amid Rising Tourism

Tuesday, November 26, 2024

As Japan sees a steady rise in visitors flocking to its famous onsen (hot spring) resorts, several cities are introducing higher “bathing taxes” to help fund crucial conservation efforts and preserve the longevity of these natural geothermal resources.

The Rise in Onsen Tax and Its Implications

Various cities across Japan, particularly those with high tourism flows, have started raising the onsen tax for overnight guests. Regions such as Hokkaido, Beppu in Oita Prefecture, and Shizuoka are leading this charge, with tax rates now ranging from 250 yen to 500 yen (£1.5 to £2.6), up from an earlier base of 150 yen (£0.8). The increased taxes aim to support the ongoing preservation of onsen facilities, which have become a significant cultural and economic asset for the country.

A key reason behind this tax increase is the rising demand for onsen tourism, which has placed added pressure on the resources and infrastructure surrounding these hot springs. According to local reports, the bathing tax increase will not only fund preservation efforts but also ensure the sustainable development of onsen tourism, which plays a vital role in Japan’s economy.

The tax changes have garnered mixed reactions, but most agree that with millions of visitors each year, the additional revenue is necessary for environmental and cultural preservation.

Onsen Tourism’s Role in Japan’s Economy

Onsen tourism is a cornerstone of Japan’s tourism industry, particularly in regions like Hokkaido and Oita, where hot spring resorts form the backbone of local economies. The influx of both domestic and international tourists contributes significantly to jobs in local hotels, ryokan (traditional inns), restaurants, and the service sector in general.

Japan is home to an estimated 27,000 onsen, with natural geothermal waters rich in minerals that have been used for centuries for their therapeutic and healing properties. The demand for these restorative baths continues to grow, especially among international travelers seeking unique cultural experiences. However, with the growing numbers of visitors comes the need to maintain the quality and sustainability of these natural resources.

Increased Taxes Across Key Regions

Notably, Shizuoka Prefecture’s Ito city is planning to raise its onsen tax to 300 yen by October 2025, due to declining onsen water levels in the region. Similarly, Higashi-Izu town will follow suit, implementing the new tax rate from March 2025.

In Hokkaido, the bathing tax has already been raised to 250 yen in Kushiro city, with plans to increase it further to 300 yen. This increase is particularly necessary due to the costs associated with preserving onsen facilities and combating the effects of climate change, which have been threatening the region’s geothermal water sources.

Earlier, in 2020, cities such as Noboribetsu, Sobetsu, Toyako, and Date city also raised their bathing tax to 300 yen in a bid to support conservation efforts. Notably, Beppu city in Oita Prefecture has led the way, significantly increasing its bathing tax from 150 yen to 250 yen for stays with room and board costing between 6,001 yen and 50,000 yen. For stays exceeding 50,000 yen, the tax rate surged to 500 yen, marking the highest rate in Japan.

Sustainability Challenges and Opportunities

Japan’s onsen industry faces significant sustainability challenges, which are driving the necessity for higher taxes. As tourism numbers rise, especially post-pandemic, the pressure on onsen resources has increased, and maintaining these hot springs in their natural state is critical for both cultural preservation and tourist satisfaction.

For the tourism industry, the rising bathing tax represents both a challenge and an opportunity. On one hand, it could potentially deter some budget travelers from visiting onsen resorts, but on the other hand, it ensures that the industry remains sustainable for future generations of visitors.

Tourism operators and travel agencies are beginning to adjust their offerings to reflect the importance of onsen conservation. By promoting eco-friendly and sustainable travel options, they are appealing to a growing segment of travelers who prioritize sustainability. Luxury and boutique travel brands, in particular, are likely to find opportunities in promoting exclusive onsen experiences where the increased taxes are seen as part of the value proposition.

A Global Impact on Travelers

The global effects of this shift in Japan’s onsen tax policies will be felt across the tourism industry. For international travelers, particularly those from eco-conscious markets such as Europe and North America, the increased taxes could highlight Japan’s commitment to sustainable tourism. While the added costs may not be significant for affluent travelers, those on a budget might be deterred by the price increases, especially for extended stays.

However, as travelers become more aware of the environmental impact of their travel choices, many may be more inclined to support destinations that are actively engaged in preserving their cultural and natural heritage. Onsen resorts could thus see a new wave of conscious travelers who appreciate the necessity of these taxes in maintaining the authenticity and quality of the experience.

Moreover, the elevated taxes will likely encourage the development of luxury offerings within onsen resorts, where guests are more willing to pay for exclusive, high-end experiences. The private ryokan, spas, and secluded hot spring experiences could become more prevalent, appealing to the affluent traveler seeking tranquility and privacy.

Japan’s decision to raise the onsen tax is indicative of a broader trend within the travel industry where sustainability and preservation are becoming central to the tourism experience. While the tax increase could be a deterrent for budget-conscious travelers, it provides a valuable opportunity for the industry to evolve and ensure the long-term viability of onsen tourism. As Japan’s onsen culture is integral to its identity, these measures will likely lead to a more sustainable and culturally sensitive tourism environment in the years to come.

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