New ‘stay tax’ imposed on tourists in the Japanese city Kyoto

Published on : Friday, November 3, 2017

kyotoFrom October next year tentatively Tokyo and Osaka Prefecture will be imposing tax on travellers staying at accommodation that charges more the 10,000 yen.

The slab is likely to be 200 yen for travellers staying in accommodation charging less than 20,000 yen per night per person. They will be charged 500 yen for more than 20,000 yen and less than 50,000 yen and 1,000 yen for more than 50,000 yen.

The Kyoto ordinance will first be implemented in Japan that also targets private lodging businesses. However, imposing tax might turn out be challenging for the city as some areas in Kyoto are full of unauthorized private lodging business.

It was reported that in 2015 around 55 million people visited the former Japanese capital which is now facing the problem of traffic jams and noise.

A sum of 4.56 billion yen a year was expected by taxing the travellers and the revenue would have been used to promote tourism.

By the end of September there are around 2,479 lodging facilities operating in Kyoto, 77 per cent are guest houses while other are boarding houses.

Around 1.1 million people are staying in illegal private lodging facilities annually and the increasing number of foreign tourists cause a chronic shortage in lodging facilities.

There was a law enacted by the Japanese parliament in July permitting the owners across Japan to rent out rooms after notifying the municipalities. However, the law is expected to come into effect by July next year and Kyoto was complying with its own regulation to create a system for collecting taxes.

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