As reported by Travel Tomorrow in January 2025, one of Japan’s main tourist attractions will be applying a new hotel tax for tourists starting from March 2026. Kyoto will thereby become the Japanese destination with the highest hotel tax in the country.
Japan’s tourism industry has been booming. In 2024, the country welcomed a record-breaking 36.9 million international visitors, a 15.6% increase compared to its previous record year, 2019. While the popularity amongst visitors is economically interesting, it has also created tensions. Traffic jams, infrastructural shortcomings, and cultural disrespect from tourists are just some of the issues locals are having to deal with.
In order to make some much-needed changes to accommodate the large number of tourists, funds are needed. Hotel taxes are an easy way for local authorities to increase their working budget, and the city of Kyoto has therefore decided to considerably increase theirs. First announced on 14th January 2025, the Ministry of Internal Affairs and Communications confirmed on 3rd October 2025 that the new tariffs would be applied as of March 2026.
New record, new tariffs
Kyoto’s first hotel tax was introduced in 2018, and since then, no alterations have been made. The maximum amount one had to pay per person per night was capped at 1,000 yen (€5.65). As of March 2026, that fee will go up, following a progressive scale of taxation.
Hotel tax in Kyoto will start at 200 yen (1.13€) for stays costing up to 5,999 yen (€33.89) a night; rising to 400 yen (€2.26) for stays priced between 6,000 and 19,999 yen (€112.97). For rooms costing between 20,000 yen and 50,000 yen (€282.45) per night, the tax rate will be 1,000 yen (€5.65) per person per night. Tourists staying at upscale rooms priced over 100,000 yen (€564.90) per night will be charged the maximum tax of 10,000 yen (€56.49). The new measure should bring the total hotel tax income from 5.2 billion yen (€29.37 million) to 12.6 billion yen (€71.17 million).
While the tourist tax is meant to increase the city’s revenues and lighten the burden on the local infrastructure, since the new fees were announced in January 2025, some stakeholders have expressed their concerns. According to them, tourists will respond by taking their accommodation spend elsewhere, staying in nearby Osaka, for example. However, according to others, this is a worst-case scenario and not likely to happen.
“In practice, these taxes are rarely meant to discourage travel – they are designed to reinvest in the very things that make cities attractive: cultural preservation, public transport, cleanliness, and better visitor management. Travellers choosing premium accommodation are motivated by quality and authenticity; when they see that their contribution supports local sustainability and improves the destination, it enhances rather than diminishes their experience”, Nicholas Smith, Holidays Digital Director at Thomas Cook online travel agency, explained to Euronews Travel.
Whether or not Kyoto’s new hotel tax will have a negative impact on its visitor numbers will only be noticeable over the course of 2026. For now, city officials are confident it will make overtourism more manageable.
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