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Japan's ancient capital is set to raise its hotel tax by as much as tenfold

The new measures will take effect in March 2026 if approved by the city assembly

Cheryl Sekkappan
Written by
Cheryl Sekkappan
News & Travel Editor, Southeast Asia
Kyoto Japan
Photograph: Shutterstock
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We've written extensively about overtourism in Japan and efforts by the country's government to curb the influx of visitors. There was the cap on daily tourist numbers in 'Spirited Away' town Ginza Onsen, the ban on tourists in Kyoto's Geisha district, and a compulsory fee for hikers on Mount Fuji. And now, Kyoto is poised to implement a tax hike on hotels and lodgings in the city. 

The move is in response to the staggering tourist numbers in Kyoto. The ancient capital saw more than 30 million visitors between January and October 2024, with tourist numbers expected to have hit a record 35 million for the whole year. Kyoto's public transport infrastructure is reportedly unable to cope, and added to that, misbehaving tourists (who have been reported to harass geiko in the city's geisha district) have left a sour taste in locals' mouths. 

If you've visited Kyoto anytime since 2018, you'd be familiar with its existing tiered system of accommodation taxes. Now, visitors pay 200 yen for a hotel costing less than 20,000 yen per night, and 500 yen for a stay between 20,000 yen and 49,999 yen per night. The current maximum tax rate is 1000 yen for accommodations costing 50,000 yen or more per night. 

If approved by the municipal assembly, the new tax rates will be 200 yen for accommodation costing up to 5,999 yen per night and 400 yen for hotels between 6000 yen and 19,999 yen. You'll pay double the tax for hotels costing between 20,000 yen and 49,999 yen per night – so, 1000 yen instead of 500 yen. The maximum tax rate will also increase ten times, to 10,000 yen per night for hotels costing 100,000 yen or more. 

The hope is to deter tourists from travelling to Kyoto, though as SCMP reports, there are concerns that visitors will crowd Kyoto on day trips anyway and that Kyoto hotels and domestic travellers will be the ultimate losers. 

But that remains to be seen, as the raised taxes are only expected to come into effect in March 2026 (if it's approved at all). That is not a sign to rush to visit Kyoto in the meantime though – we wouldn't want to exacerbate a very real and serious problem, after all. Instead, check out these underrated gems in Japan and around the world that would be more than happy to receive you. 

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