Japan has taken a significant step towards enhancing its tourism revenues by approving new accommodation taxes across nine cities and two prefectures, a decision made public on March 21, 2025, by Internal Affairs and Communications Minister Seiichiro Murakami. This move comes amid a robust revival in tourism post-pandemic.
These new taxes will take effect in the fall of 2025 and have been introduced in various locations including Miyagi and Hiroshima prefectures, as well as five cities in Hokkaido, two in Gifu Prefecture, and one each in Miyagi and Shimane prefectures. The total number of local governments that have now received ministerial consent for such taxation measures has climbed to 24.
Among the cities approved for the new tax are Otaru, celebrated for its picturesque canals, and Gero, renowned for its hot springs. The tax amounts will range from 100 yen (approximately $0.70) to 500 yen per person per night, varying by local government. Notably, students on school trips will be exempt from these charges.
This new taxation initiative mirrors the lodging tax first introduced by Tokyo in 2002, which has now seen 11 local governments like Osaka and Kyoto implementing similar measures. Recently, Atami in Shizuoka Prefecture announced it would introduce the tax in April 2025, followed by Akaigawa village in Hokkaido later in November.
Chiba and Okinawa prefectures are also making preparations to adopt the lodging tax, as local authorities nationwide increasingly seek to manage the challenges posed by overtourism. Kyoto, significantly impacted by heavy visitor traffic, plans to amend its existing accommodation tax, raising its maximum rate from 1,000 yen to a steep 10,000 yen.
The ongoing push for accommodation taxes comes against a backdrop of declining pandemic restrictions and a surge in tourism activity. February 2025 saw a landmark milestone for Japan's tourism industry, where foreign visitors topped 3 million for the month for the first time, registering a spectacular 16.9% increase compared to February 2024, as reported by the Japan Tourism Agency.
The influx was notably fueled by Lunar New Year celebrations, which encouraged an uptick in visitors from China and other Asian nations. There's also been a marked increase in tourists from Australia and the United States, drawn primarily by the region's winter sports offerings like skiing.
According to Agency Commissioner Haraikawa Naoya, the broader trend indicates that 70% of foreign visitors have concentrated their stays in the Tokyo, Aichi, and Kansai regions, with many of them experiencing Japan for the first time.
In light of these trends, there is a clear intention from the government to steer new tourists toward rural areas on subsequent visits, highlighting a strategic shift to diversify visitor distribution and mitigate pressure on excessively trafficked urban hotspots.
In summary, Japan's proactive measures regarding accommodation taxes reflect a dual aim: to bolster the local tourism economy while simultaneously attempting to alleviate the strain caused by an influx of visitors. The forthcoming adjustments and adaptations across various prefectures underscore a crucial moment in Japan's tourism strategy as it navigates the complexities of post-pandemic revival.
The newly approved rates and the resurgence in foreign tourism are key indicators of a nation optimally positioning itself to harness the economic potential of its vibrant travel industry, while being mindful of sustainable practices that respect both local communities and environmental concerns.
