Kyoto hikes hotel taxes as locals protest too many tourists

In Japan, the city of Kyoto recently announced plans to significantly increase its lodging tax as a strategy to manage the growing issue of overtourism. The city aims to raise the accommodation tax for various lodging options to a maximum of 10,000 Japanese yen per person per night, up from the previous cap of 1,000 yen. This change is set to be implemented by spring 2026. The new tax rates will begin at 200 yen for accommodations under 6,000 yen a night and incrementally increase based on the price range of the rooms. The city began a tiered accommodation tax system back in 2018, initially charging lower rates for stays below certain price points. Recently, tourism numbers have surged following the lifting of COVID-19 travel restrictions, with expectations that Kyoto will see an influx of over 35 million visitors in 2024. Many residents have expressed their discontent regarding the influx of tourists that have contributed to environmental degradation and traffic congestion. Consequently, the mayor of Kyoto, Koji Matsui, stated that the decision to raise taxes is aimed at balancing tourism growth with the sustainability and livability for local residents. The hoped outcome is to generate increased revenue from lodging taxes, potentially reaching over 10 billion yen, nearly double the amount collected in the previous fiscal year. However, experts warn that higher accommodation taxes may drive tourists to seek cheaper options in nearby cities, which could counteract the goal of reducing visitor numbers in Kyoto. Tourist operators acknowledge the challenges posed by overtourism but worry that the tax increases may result in a loss of business as tourists opt for day trips to Kyoto instead of longer stays. Overall, this move is seen both as an effort to ensure the coexistence of tourism and the quality of life for locals, but also poses questions about the effectiveness of taxes as a deterrent in an increasingly competitive travel market.