The Tokyo Metropolitan Government is considering revising its hotel tax from a fixed nightly fee to a flat 3% levy on accommodation rates.
First introduced in 2002 to support tourism promotion, the current tiered system charges guests 100 yen per night for room rates of at least 10,000 yen (US$64), and 200 yen for rooms costing 15,000 yen or more.
Switching to a percentage-based model could double Tokyo’s annual hotel tax revenue from about 6.9 billion yen to nearly 14 billion yen, according to local media.
High-end and foreign-owned hotels are expected to shoulder more under the new system, while officials are also weighing whether to extend the tax to private rentals and low-cost lodgings, which are currently excluded from the scheme.
A draft proposal will be released after public consultation, with implementation targeted for 2027, pending approval.
Tokyo isn’t alone in raising levies on overnight stays. Kyoto has already approved what could become Japan’s steepest hotel tax, set to reach 10,000 yen per person, per night from March 2026.
AloJapan.com