TOKYO – Japan’s ruling Liberal Democratic Party on Thursday called for hiking the departure tax from the current 1,000 yen ($7) per person, hoping to use the increased revenue to address challenges posed by a surge in inbound tourism.
The proposal made by an LDP panel in charge of tourism issues comes as a plan has emerged within the government of new Prime Minister Sanae Takaichi to raise the international tourist tax, as it is formally called, to 3,000 yen. She floated the idea before becoming premier.
The panel concluded that the tax, introduced in 2019, is a stable revenue source for debt-ridden Japan, which plans to attract some 60 million foreign visitors a year by 2030.
Travelers leaving Japan, including Japanese citizens, must pay 1,000 yen per person at present. Japan saw a record 52.5 billion yen in departure tax revenue alone in fiscal 2024 through March.
The revenue is destined for use in making tourism stress-free by improving access to information and transportation among other objectives.
This year Japan is on course to take in its largest number of foreign visitors, having already crossed 30 million at the end of September with the fastest pace of increase.
While the tourism boom has benefited local areas, various problems have come to light, including overcrowding, noise, pollution and issues with behavior by some visitors.
“We need to foster tourism as a sustainable industry,” Ryuji Koizumi, the panel’s leader, told reporters after compiling the proposal, which stressed the need for measures catering to the needs of each local entity struggling with overtourism.
In response to increasing demand for air travel, Narita airport near Tokyo is set to expand its takeoff and landing slot capacity to 340,000 a year, up from the current 300,000. In fiscal 2025, total landings and departures are expected to reach 255,000.
The increase, which takes effect on Sunday, will be the first in 15 years, coming before the total slots are expected to reach half a million in the future with the addition of a new runway expected by March 2029.
The airport, one of the hubs serving mainly international flights, saw foreign travelers top 20 million for the first time in fiscal 2024.
Japan has been a popular destinations for foreign tourists, due in part to a weak Japanese yen that makes trips to the country relatively cheap.
An official of the operator of Narita International Airport hopes that the upcoming slot increase will help expand its connections to Asia, North America and the Middle East.
AloJapan.com