Struggling to rein in overwhelming tourist crowds, Kyoto’s city government will introduce a steep increase in its accommodation tax — up to 10,000 yen (about US$68) per person, per night — starting March 1, officials announced.
The new rate, a tenfold jump from the current 1,000 yen/US$6.80 maximum, is designed to fund infrastructure improvements and initiatives aimed at easing congestion across the city’s popular districts.
Under the new tiered system, the 10,000-yen levy will apply to hotel stays costing 100,000 yen or more per night. Kyoto will then have the highest lodging tax in Japan, according to the Ministry of Internal Affairs and Communications, which approved the revision on Oct. 3.
City officials say the measure comes after years of frustration over unrelenting tourist crowds — from packed city buses to throngs of visitors overwhelming historic sites and narrow streets.
In its application to the ministry earlier this year, Kyoto argued that “tourists must also share the cost of measures against overtourism.” The increase marks the first adjustment since the tax was introduced in 2018.
Fighting overtourism with higher hotel taxes
The new rates per person, per night are as follows:
200 yen for stays under 6,000 yen (unchanged) or US$1.36 for stays under $41.
400 yen for stays from 6,000 yen to less than 20,000 yen or $2.70 for stays from $41 to less than $136.
1,000 yen for stays from 20,000 yen to less than 50,000 yen or $6.80 for stays from $136 to less than $340.
4,000 yen for stays from 50,000 yen to less than 100,000 yen or $27 for stays from $340 to less than $680
10,000 yen for stays costing 100,000 yen or more ($68 for stays costing $680 or more)
Students and teachers on school trips will remain exempt.
Following the increase, Kyoto expects its annual lodging tax revenue to nearly double from 5.9 billion yen this fiscal year to 12.6 billion yen next year, based on city projections. In US dollars, this represents a jump from US$40 to US$85 million.
The change comes amid a surge in luxury hotel development. Tokyo-based Imperial Hotel Ltd. is set to open Imperial Hotel, Kyoto, in March 2026 in the city’s Higashiyama Ward. The property will incorporate the façade of Yasaka Hall, a registered cultural property in Kyoto’s Gion district — long regarded as the heart of geisha culture. Room rates are expected to start at 164,500 yen per night.
(Source: Asahi Shimbun)
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