Japan Strengthens Tourism Sustainability With Rising Accommodation Taxes, Paving The Way For Future Growth And Infrastructure Development

Published on September 1, 2025

In response to the growing pressures of overtourism, several major cities in Japan are implementing rising accommodation taxes. These measures aim to generate funds for essential infrastructure improvements, help manage the impact of mass tourism, and promote long-term sustainability in the tourism sector. By introducing higher taxes, local governments plan to reinvest the revenue into projects that enhance visitor experience, preserve cultural heritage, and mitigate overcrowding in popular destinations. This initiative is part of a broader strategy to ensure that Japan’s tourism industry remains thriving and balanced, benefiting both tourists and local communities.

Japan is seeing a growing trend in municipalities implementing accommodation taxes as a means to address the challenges of overtourism and to better fund the development of tourism infrastructure. A total of 42 municipalities nationwide have already implemented or are preparing to roll out tourism-related taxes, designed to strengthen local infrastructure and curb the impact of heavy visitor inflows.

By the end of July, 35 municipalities had obtained approval from the Ministry of Internal Affairs and Communications, and of those, 12 had already rolled out the tax. The remaining 23 municipalities are expected to introduce the tax by early 2026. These taxes are being introduced in some of Japan’s most visited cities, including Tokyo, Kyoto, Osaka, Fukuoka, Nagasaki, Kanazawa, Kutchan, Hiroshima, and Hokkaido. Popular resort areas like Niseko have also joined the list, implementing a tiered accommodation tax system designed to target different types of lodging and stay durations.

The tax is typically collected as part of the accommodation fee, with the rates varying depending on the type of lodging. The range spans from JPY 100 (approximately R12) to JPY 1,000 (around R120) per person, per night. The tiered system ensures that the more luxurious accommodations contribute a higher rate, while more budget-friendly options remain accessible. Kyoto, however, is set to introduce a much higher rate, aiming for a significant increase to its existing five-tiered structure. If the proposal is accepted, Kyoto’s accommodation tax will reach up to JPY 10,000 (approximately R1,200) per person, per night by 2026, making it the highest flat-rate tax for hotels in Japan.

The purpose of these taxes is to provide much-needed funding for infrastructure improvements that will help mitigate the negative effects of overtourism. Kyoto, a city renowned for its cultural and historical significance, has seen a sharp increase in tourist numbers in recent years, resulting in significant pressure on its infrastructure and local environment. The extra tax revenue will be allocated to enhance local services, improve public transportation, and preserve the city’s heritage while managing the influx of visitors. This approach is in line with broader efforts by Japanese cities to make tourism more sustainable and less disruptive to daily life.

As the country continues to recover from the pandemic and welcomes an increasing number of international tourists, the need for responsible tourism management has never been more pressing. The revenue generated from accommodation taxes will be used to support long-term initiatives aimed at making tourism a more balanced and beneficial experience for both visitors and residents. While the taxes are seen as an additional cost to tourists, they represent a strategic investment in Japan’s future tourism landscape, ensuring that the country’s most iconic cities and regions remain viable for generations to come.

The accommodation tax scheme is not without its challenges, particularly in terms of its reception from both tourists and local businesses. While some see it as an essential tool to support the tourism sector’s sustainability, others worry that the extra cost could deter potential visitors, especially during times when the global tourism industry remains fragile. However, the local governments argue that the increased revenue will ultimately benefit both the tourism industry and the local communities by improving the overall quality of services and infrastructure.

Kyoto’s bold step of raising its accommodation tax will place it at the forefront of this initiative, making the city an example of how tourism taxes can be used not only as a tool to control visitor numbers but also as a means to improve the tourism experience. Kyoto’s popularity has surged in recent years, and while the increase in tax rates may initially deter some travelers, the reinvestment into tourism infrastructure is likely to enhance the overall visitor experience, offering a more comfortable and sustainable environment for future generations.

The accommodation tax program is also expected to play a significant role in helping Japan diversify its tourism offerings. With a heavy focus on major cities and well-known tourist sites, many of Japan’s lesser-known destinations have struggled to benefit from the boom in tourism. By allocating the funds raised from the taxes to support lesser-visited areas, the government hopes to spread the economic benefits more evenly across the country, reducing the concentration of tourism in the major cities.

In addition to supporting infrastructure development, the tax is also intended to improve the sustainability of Japan’s tourism industry. By helping to reduce the environmental impact of mass tourism and funding initiatives such as eco-friendly tourism options and conservation efforts, the accommodation tax aims to make tourism more responsible and less damaging to Japan’s natural and cultural resources.

As other countries around the world look for ways to balance tourism growth with sustainability, Japan’s model of tiered accommodation taxes could provide valuable insights. The structure allows for flexibility and fairness, ensuring that tourists contribute to the cost of maintaining and improving the destinations they visit, while at the same time promoting more equitable tourism development across the country.

Overall, Japan’s implementation of accommodation taxes is a crucial step in the country’s efforts to manage its tourism growth and create a more sustainable future for the industry. By introducing these taxes, Japanese municipalities are taking proactive measures to improve infrastructure, preserve cultural and environmental resources, and ensure that the benefits of tourism are shared more equally across the country. While there may be some initial resistance, the long-term advantages of these initiatives are likely to outweigh the challenges, providing a more sustainable and enjoyable experience for tourists and locals alike.