In a significant move to bolster its tourism sector, Atami City in Shizuoka Prefecture has officially implemented a lodging tax starting April 1, 2025. This marks the first such tax in the prefecture and aims to generate funds for tourism promotion in the area.
The lodging tax is set at 200 yen per person per night and will be collected from guests at approximately 400 lodging facilities, including hotels and minpaku (private lodging). The city anticipates an annual revenue of around 600 million yen, which will be exclusively allocated to tourism initiatives.
The Atami Tourism Bureau, a designated management organization (DMO), also commenced operations on the same day. This bureau will oversee the allocation of the tax revenue and implement strategies to enhance Atami's appeal as a tourist destination. Kazuyoshi Ueda, the newly appointed CEO of the bureau, expressed his vision during an inaugural press conference. "Our goal is to make Atami a beloved and chosen city, creating a future powered by tourism," he stated.
Ueda's plans include setting five key performance indicators to measure the success of their initiatives, including the number of overnight guests, consumer spending, weekday occupancy rates, branding metrics, and citizen satisfaction. The bureau is actively recruiting specialists in marketing and tourism management, aiming to expand its team to seven or eight members to better handle inbound tourism.
Local business leaders are optimistic about the lodging tax. Kanekiyo Morita, president of the Tsuki no Izu Atami Juraku Hotel and chairman of the Atami Onsen Hotel Ryokan Cooperative Association, emphasized the need for effective use of the tax to remain competitive against other tourist destinations. "We need to win the fierce competition in the tourism sector and ensure that more guests choose to stay in Atami," he remarked.
Visitors to Atami are already responding positively to the new tax. Yuya Kitajima, a college student visiting for the second time, mentioned that he doesn’t mind paying the tax because he believes it will benefit tourists through improved services and attractions. "I think it’s worth it, especially if the money goes towards things like fireworks festivals that enhance our experience here," he said.
While the implementation of lodging taxes is becoming more common across Japan, experts warn that it is crucial for municipalities to be transparent about the use of the funds and to regularly assess the cost-effectiveness of their tourism projects. This concern highlights the importance of accountability in ensuring that the tax serves its intended purpose of enhancing the local tourism landscape.
In addition to the lodging tax, Atami is also focusing on other strategies to attract visitors. The city aims to maintain its status as a popular hot spring destination, particularly in light of challenges posed by declining birth rates and an aging population, which have been impacting local tax revenues.
As Atami embarks on this new chapter in its tourism strategy, it joins a growing number of cities across Japan that are adopting similar measures to finance their tourism initiatives. With the lodging tax in place, city officials and business leaders are hopeful that it will lead to a more sustainable and vibrant tourism economy.
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As Atami City implements its lodging tax and the Atami Tourism Bureau takes charge of its tourism strategy, the local community and visitors alike are eager to see how these changes will shape the future of tourism in this scenic hot spring town.
