Japan Prepares Major Hike In Departure Tax To Tackle Explosive Tourism Growth And Prevent Overcrowding

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Japan’s government is considering raising the ¥1,000 International Tourist Tax, which is levied as a departure tax. The proposed revision aims to broaden the tax’s scope to mitigate overtourism, an issue exacerbated by the surge in foreign visitors.

A subcommittee within the ruling Liberal Democratic Party has started gathering feedback on the potential tax increase and its allocation. Given that departure taxes in other nations are significantly higher—approximately ¥3,750 in Egypt and ¥7,000 in Australia—proposals have emerged to raise Japan’s tax to either ¥3,000 or ¥5,000. Presently, revenue from this tax is primarily directed toward initiatives that promote international tourism, including attracting foreign travelers and developing resort areas.

In response to overtourism concerns, lawmakers expect that funds from the tax will also be allocated to improving transportation infrastructure and enhancing airport facilities. Their proposals will be incorporated into the tax reform framework following discussions at the ruling parties’ tax commission.

Introduced in January 2019, the tax is included in the ticket costs for flights and cruise departures from Japan, applying to both foreign travelers and Japanese nationals. In fiscal 2023, revenue from the tax tripled from the previous year, reaching ¥39.9 billion, and is projected to rise to ¥49 billion in fiscal 2025.

According to the Japan Tourism Agency, 36.87 million foreign visitors arrived in Japan in 2024, while 13.01 million Japanese traveled abroad. With the government targeting 60 million visitors by 2030, tourism numbers are expected to continue rising.

However, some airports and tourist hotspots are struggling to accommodate this rapid growth. If visitor numbers increase further, overtourism challenges could intensify. To counteract this, the government plans to boost financial resources by increasing the International Tourist Tax and channeling the additional revenue into infrastructure improvements to sustain tourism growth.

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