Kyoto will raise accommodation taxes to fund city infrastructure development and address overtourism ills

Japan’s Kyoto is working towards higher accommodation tax – up to 10,000 yen (US$64.20) per night for rooms priced from 100,000 yen and more –  to fund city infrastructure developments and address overtourism issues. This is expected to be implemented from March 2026.

Kyoto will raise accommodation taxes to fund city infrastructure development and address overtourism ills

Kyoto’s current accommodation tax on overnight tourists, in place since 2018, has an upper limit of 1,000 yen per person per night.

With the revision, stays costing 6,000 yen a night will incur a 200 yen tax; room rates from 6,000 yen to 19,999 yen a night would be subjected to 400 yen in taxes; from 20,000 yen to 49,999 yen would have 1,000 yen in taxes; from 50,000 yen to 99,999 yen would have 4,000 yen in taxes; and rates exceeding 100,000 yen would have 10,000 yen in taxes.

Trips for educational purposes would be exempt from the taxation.

According to local news reports, the collected money would be used to improve city infrastructure, including public transportation services and conservation of traditional buildings.

AloJapan.com