Nasu Town in Tochigi Prefecture to Launch Japan’s First Countryside Lodging Tax in 2026 to Support Sustainable Tourism Growth

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As tourism continues to surge in Japan’s rural destinations, Nasu Town in Tochigi Prefecture is taking proactive steps to manage the growing influx of visitors. Officials have announced plans to implement a new lodging tax starting in October 2026, aimed at ensuring sustainable tourism development and improving travel-related services.

Often referred to as a “royal resort” due to its historic Imperial Villa and serene Nasu Onsen hot spring area, the town draws an estimated 5 million visitors annually. With tourist numbers not only recovering but exceeding pre-pandemic levels, local authorities have recognized the need to establish a stable funding mechanism to meet visitor demands and safeguard the town’s economic future.

Proposed Lodging Tax Targets Travel Infrastructure Growth

The town’s proposed lodging tax ordinance—expected to be submitted to the Nasu Town Assembly in June 2025—outlines a six-tier flat-rate tax system. The charges will apply to all overnight guests staying at hotels, inns, pensions, and guesthouses within the municipality, with fees calculated based on the nightly room rate (excluding meals, consumption tax, and bathing tax).

The proposed lodging tax tiers are:

• Under ¥10,000 (approx. $66 USD): ¥100
• ¥10,000 to under ¥20,000: ¥300
• ¥20,000 to under ¥30,000: ¥500
• ¥30,000 to under ¥50,000: ¥800
• ¥50,000 to under ¥100,000: ¥1,500
• ¥100,000 and above: ¥3,000

Importantly, exemptions will be granted to children under 12, school trip students (excluding university-level), and their chaperones.

Tax Revenue Will Directly Fund Tourist Experience Improvements

Tourism officials have emphasized that revenue from the tax—estimated at ¥300 million annually (approx. $1.9 million USD)—will be reinvested into enhancing the visitor experience and sustainability of Nasu’s travel infrastructure.

Funds will support:

• Road upgrades and walking paths
• Development of local transportation systems
• Environmental conservation programs
• Upgrades to digital point-of-sale systems for accommodations
• Incentives for local accommodation operators

According to Mayor Yukihiro Hirayama, the initiative reflects a commitment to “providing services that exceed the value of the tax paid” and positioning Nasu as a world-class, environmentally responsible tourism destination.

Foreign Visitor Numbers Soar, Highlighting New Tourism Demands

The Nasu Town Tourism Association first proposed the lodging tax in August 2024, citing the sharp rebound in tourism and increased pressure on infrastructure and services. In 2023 alone, over 5 million travelers visited Nasu—marking a 13-year high. Of particular note is the dramatic increase in international guests: foreign overnight stays jumped to 15,000, a fourfold increase from the previous year.

This boom has accelerated the town’s need to cater to international tourists, who often seek higher standards of service, accessible transportation, and multilingual support. Officials now view the lodging tax as a strategic tool to finance those upgrades and maintain Nasu’s appeal as a nature-based wellness and cultural escape for global visitors.

Demographic Decline Spurs Economic Urgency

Beyond rising visitor numbers, the town faces a long-term challenge: a declining population, projected to shrink by 4,000 residents by 2030 from its current 24,000. According to the Nasu Tourism Strategy Council, this could result in a loss of ¥5.2 billion (approx. $34.6 million USD) in local consumption.

By investing in tourism sustainability now, the town hopes to offset demographic and economic pressures, retain jobs in the hospitality sector, and continue to attract new visitors as a cornerstone of regional revitalization.

A Model for Other Japanese Destinations

If implemented, Nasu would become the first municipality in Tochigi Prefecture to introduce a lodging tax—joining the ranks of major Japanese tourism hubs like Tokyo, Osaka, Kyoto, and Kanazawa, which already use lodging taxes to fund tourism initiatives.

Unlike those urban centers, Nasu offers a more countryside and wellness-focused visitor experience, making this tax initiative a potential blueprint for other rural destinations facing overtourism and infrastructure fatigue.

The ordinance will require formal approval from the town assembly, followed by discussions with the Ministry of Internal Affairs and Communications. If greenlit, accommodations will begin collecting the tax in October 2026.

Travel Industry Reactions and Future Outlook

Tourism professionals and sustainability advocates have largely welcomed the plan, noting that value-based taxation models help distribute the benefits and burdens of travel more equitably. As more international travelers seek off-the-beaten-path destinations in Japan, localized lodging taxes are seen as tools for smart tourism growth.

Nasu’s leadership hopes that guests will embrace the tax, knowing their contributions directly support eco-tourism, infrastructure improvements, and cultural preservation.