After the pandemic, the number of foreign tourists visiting Japan has been rapidly increasing. Over-tourism has become a problem in many regions. In order to alleviate the economic pressure on tourist destinations, the Japanese government is considering raising the international tourism tax. The departure tax, currently at 1,000 Japanese yen (approximately $6.78), would be raised to 3,000 to 5,000 Japanese yen (approximately $20.43 to $33.90).
The ruling party of Japan, the Liberal Democratic Party, is reportedly considering increasing the international tourism tax from the current 1,000 Japanese yen per visitor to 3,000 to 5,000 Japanese yen. The party has commenced collecting opinions on the scope and utilization of the proposed increase. Considering that the related tax rates overseas are higher than in Japan, for instance, around 3,750 Japanese yen (approximately $25.42) in Egypt and about 7,000 Japanese yen (approximately $47.45) in Australia, the proposal aims to raise the tax rate to 3,000 to 5,000 Japanese yen.
The usage of these tax revenues would be restricted to measures related to international tourism, such as attracting inbound tourists and developing resorts. As a measure to combat over-tourism, the tax revenue would be used for transportation in tourist areas and airport improvements.
Japan’s international tourism tax was implemented in January 2019, added to airfares and cruise ticket prices departing from Japan, applicable not only to foreign tourists visiting Japan but also to Japanese nationals leaving the country. The tax revenue in 2023 was nearly triple that of the previous year, reaching 39.9 billion Japanese yen (approximately $270 million), with an expected increase to 49 billion Japanese yen (approximately $332 million) in 2025.
According to statistics from the Japan Tourism Agency, the number of foreign visitors to Japan in 2024 reached 36.87 million. The government aims to continue increasing the number of foreign visitors to Japan, with a target of reaching 60 million by 2030.
However, some airports and tourist destinations are not adequately prepared to accommodate foreign visitors. If the number of tourists to Japan continues to increase, the issue of over-tourism could worsen. The Japanese government plans to increase fiscal resources through raising the international tourism tax and utilizing them for environmental improvements in line with their goals.
Over-tourism refers to the phenomenon where tourists excessively concentrate on a particular destination, causing negative impacts on the local community and environment. This is known as “tourism pollution” in Japanese, including disturbances to the daily lives of local residents, environmental damage, cultural heritage degradation, and the decline of local traditional cultures. Issues such as crowded public transportation, noise problems, increased littering, and the misbehavior of tourists could threaten the lives of local residents.
On February 18, Osaka Prefecture announced that the amendment bill of the Accommodation Tax System in Osaka had obtained approval from the Japanese Minister of General Affairs. Therefore, Osaka Prefecture will partially amend the Accommodation Tax Regulations, including raising the tax rate. It is expected to bring in approximately 8 billion Japanese yen (about $54 million) in revenue.
The starting point for collecting the accommodation tax will be reduced from the previous 7,000 Japanese yen (about $47.42) to 5,000 Japanese yen (about $33.87), with an increase in the tax rate.
For example, for accommodation fees per night ranging from 5,000 to 15,000 Japanese yen, the tax would be raised from 100 to 200 Japanese yen; for fees of 15,000 to 20,000 Japanese yen, the tax would go from 200 to 400 Japanese yen; and for fees exceeding 20,000 Japanese yen, the tax would increase from 300 to 500 Japanese yen.
The amended regulations will come into effect on September 1, 2025.
Kyoto, a neighboring city of Osaka in Japan, plans to increase its accommodation tax higher than Osaka. The city intends to raise the accommodation tax from the current 200 to 1,000 Japanese yen per night (approximately $1.35 to $6.77) to a maximum of 10,000 Japanese yen (approximately $67.70). If the plan is realized, the revenue from the accommodation tax is expected to more than double, reaching about 12.6 billion Japanese yen (about $85 million).
The revised ordinance has been submitted to the city council last month, and once approved, it will take effect on March 1, 2026, after consulting with the Minister of General Affairs.
Post-pandemic, many tourists are returning to travel destinations worldwide. Numerous destinations are facing over-tourism issues with overcrowded transportation, lack of restroom facilities, increased littering, noise pollution, and illegal parking problems. Due to overcrowding, some tourist destinations have decided to levy tourism taxes, while others have raised existing tourism taxes.
Across the globe, including countries like Japan, 25 countries and regions have implemented tourism taxes. The collected funds are primarily used for maintaining tourism infrastructure, such as improving roads, public transportation services, and escalator facilities.
Barcelona, the capital of Catalonia in Spain, began levying regional tourism taxes and city surcharges as early as 2012. On April 1, 2023, the city increased the city tax to 2.75 euros, rising to 3.25 euros on April 1, 2024. Valencia, the third-largest city in Spain, has also been collecting tourism tax since 2024, imposing it on all guests staying in accommodations, including hotels, inns, apartments, and campsites.
Orio, a city in Portugal, started collecting tourism taxes in 2023. During the peak season from April to October, visitors are required to pay 2 euros per night, while it is 1 euro from November to March.
Venice, Italy, faced an influx of tourists in the summer of 2023, leading to the introduction of a tourism tax for day-trippers starting in 2024.
Austria levies accommodation taxes on visitors, but the regulations vary among states. In Vienna and Salzburg, each visitor must pay a 3.02% hotel tax.
Belgium’s tourism tax is included in hotel room prices, generally around 7.5 euros.
France adds a tourism tax to hotel room rates, ranging from 0.2 to 4 euros per night.
Starting in 2024, the European Union introduced the European Travel Information and Authorization System (ETIAS), with an application fee of 7 euros per person (approximately $7.60) (those under 18 or over 70 are exempted from applying).
Bhutan imposes a relatively high tourism tax, with a daily tourist tax of 228 euros during the peak season.
Additionally, countries like the United States, Germany, Greece, Hungary, Bulgaria, Caribbean islands, Croatia, Czech Republic, Indonesia, Malaysia, New Zealand, Netherlands, Portugal, Slovenia, Switzerland, and others also have implemented tourism taxes.