While South Korea and China remain the top source markets for visitors to Japan, the United States ranks fourth and stands as the leading non-Asian country sending travelers to Japan, with record-high visitor numbers. The U.S.–Japan relationship, which dates back to the late 18th century, is widely regarded as one of the most enduring partnerships in the Indo-Pacific.
Before the COVID-19 pandemic, Japan was the second-largest overseas source of travelers for U.S. tourism, sending roughly 3.8 million visitors annually to America. However, Japanese tourism to the U.S. has struggled in recent years amid a weak yen and waning interest, particularly among younger travelers. Today, the dynamic has shifted: inbound travel from the U.S. to Japan is booming, with bookings higher by 24% in the first half of 2024 compared with the same period in 2019.
Despite Canada’s recent travel advisory for Japan, often regarded as the safest country in Asia, overseas travel to the nation has soared to record highs since the lifting of COVID-19 restrictions. Drawn by its distinctive blend of attractions, from a deadly but beautiful forest known for its suicides to the cutting-edge innovation of the world’s first “Robot City,” as well as its mix of historic and modern urban centers, travelers are flocking in greater numbers than ever.
One city, in particular, has felt the brunt of this tourism boom: Kyoto. In 2024, the ancient capital welcomed a record 56.06 million visitors, including a record-breaking 10.88 million foreign tourists, which led to overtourism challenges such as overcrowded public transport and strained local infrastructure. These issues have prompted the city to raise accommodation taxes in response.
Tourists Will Pay A New Tax To Visit Japan’s Iconic City
Kyoto, often seen as the quintessential image of traditional Japan, with its cobblestone lanes, fragrant matcha tea, and gilded temples and shrines, is experiencing a tourism boom of staggering proportions. The city welcomed more than 56 million visitors in 2024, including nearly 11 million international tourists, and is expected to attract a substantial share of the unprecedented 40 million foreign visitors Japan anticipates in 2025.
Tourists
Foreigners in Japan (2024) — 36 million
Foreigners in Kyoto (2024) — 11 million
All visitors to Kyoto (2024) — 56 million
Foreigners in Japan (2025) — 40 million (projected)
In response, city officials have announced plans to introduce Japan’s highest hotel tax beginning March 2026, with luxury accommodations charging up to 10,000 yen (US$66) per night, according to the South China Morning Post.
The New Tax Structure
Fees / Tax
Fee Amount
Structure
Current Fee
200 yen to 1,000 yen ($6.50)
Accommodation under 20,000 yen to 50,000 yen or more
From March 2026
200 yen ($1.30)
Accommodation under 6,000 yen ($40)
From March 2026
200 yen to 400 yen ($2.66)
Accommodations from 6,000 to 20,000 yen ($40–$133)
From March 2026
500 yen to 1,000 yen ($6.64)
Accommodations from 20,000 to 50,000 yen ($133–$332)
From March 2026
1,000 yen to 4,000 yen ($26.58)
Accommodations from 50,000 to 100,000 yen ($332–$665)
From March 2026
1,000 yen to 10,000 yen ($66)
Accommodations from 100,000 yen and above ($665+)
The Ministry of Internal Affairs and Communications granted final approval for the measure on Friday, following the Kyoto City Assembly’s endorsement earlier this year. The new tax, aimed at curbing overtourism, will range from 200 yen for budget lodgings to 10,000 yen for stays exceeding 100,000 yen per night, a sharp increase from the current maximum of 1,000 yen.
City officials said the move ensures that “tourists also share the cost of countermeasures against overtourism,” according to The Asahi Shimbun, which publishes only select articles in English.
According to the South China Morning Post, Mayor Koji Matsui stated that the additional revenue will help Kyoto develop a sustainable tourism model benefiting both visitors and residents. City officials estimate the new tax could nearly double annual revenue, rising from 5.91 billion yen (US$40 million) to approximately 12.6 billion yen.
“The Accommodation Tax is used to cover costs involved in enhancing the attractions of Kyoto as an International Culture and Tourism City, and in promoting tourism,” the Kyoto City Government stated on its official website, which still lists the previous tax rates.
Kyoto’s tourism boom, while fueling the local economy and revitalizing post-pandemic travel, has also created mounting challenges for residents and domestic visitors alike. Narrow streets once frequented mainly by locals are now crowded year-round, public transportation systems are often overwhelmed, and many neighborhoods report disruptions to daily life and rising living costs. In response, the city’s newly approved hotel tax represents the latest effort to balance economic growth with cultural preservation.
Response To Kyoto’s New Hotel/Accommodation Tax
Hotel in Kyoto, JapanCredit: Matsujima, Wikimedia Commons
The approval for the new tax structure was granted on October 3, 2025, after Kyoto’s city assembly endorsed the proposal in March 2025. It marks the first increase since the accommodation tax was introduced in October 2018. Many also believe that higher tax rates will primarily affect visitors staying in premium accommodations, as they are less likely to alter their travel plans due to modest price increases.
“So basically just upping taxes, with a heavier rate applied to extremely pricey rooms,” one traveler wrote in a Reddit post, “and if someone is dropping 100,000 yen a night on a hotel room they probably aren’t going to miss that extra 10,000 yen anyway.”
While Kyoto officials claim the tax increase is a measure to address overtourism, some remain skeptical of its impact on reducing visitor numbers. Nicholas Smith, Holidays Digital Director at Thomas Cook, told Euronews Travel, “In practice, these taxes are rarely intended to discourage travel; they are designed to reinvest in the very elements that make cities attractive: cultural preservation, public transport, cleanliness, and improved visitor management.” He added that travelers at premium accommodations are motivated by quality, and realizing that their contributions further enrich the destination enhances their experience, attracting them more, not less.
Whichever way you look at it, the bottom line is that under the new system, guests staying in luxury hotels will pay the highest rate of ¥10,000 (about US$66) per night, while those in budget accommodations costing less than ¥6,000 will pay ¥200 (around US$1.30) per night.
AloJapan.com