Nasu Town, Tochigi Prefecture, known for its scenic beauty and royal resorts, is gearing up to implement an accommodation tax aimed at bolstering financial resources for tourism promotion. With an impressive 5 million visitors annually, this initiative comes at a time when the town is witnessing a resurgence in tourism, particularly among foreign guests.
The Nasu Town government plans to propose the accommodation tax ordinance during the regular town assembly meeting in June 2025. If approved, Nasu Town will become the first municipality in Tochigi Prefecture to execute such a tax, marking a significant step in enhancing its tourism infrastructure.
The accommodation tax, scheduled to begin collection in October 2025, is designed with a six-tiered fixed rate system based on the amount paid for overnight stays. The tax rates are structured as follows: guests paying under 10,000 yen will incur a 100 yen tax; between 10,000 to 20,000 yen will be taxed at 300 yen; those spending between 20,000 to 30,000 yen will pay 500 yen; for 30,000 to 50,000 yen, a tax of 800 yen applies; staying under 100,000 yen will result in a 1,500 yen tax, and for 100,000 yen and above, guests will pay 3,000 yen.
Targeting hotels, inns, minshuku, and pensions within municipal borders, the fixed-rate system is designed for transparency and ease of understanding. Exemptions will be granted to children under 12 years of age, students on school trips (excluding university students), and their chaperones.
The funds raised from this accommodation tax are earmarked for a variety of essential services related to tourism. Initiatives include infrastructure enhancements, such as road and walkway improvements, public transportation efficiency upgrades, and environmental conservation measures. According to a spokesperson for Nasu Town, "The tax will ensure we have sufficient financial resources to maintain and enhance our tourism infrastructure," emphasizing the importance of this revenue stream for future development.
This push for an accommodation tax gained momentum back in August 2024 when the Nasu Town Tourism Association formally submitted a recommendation for its introduction. Concerns surrounding the shrinking tourism promotion budget inspired the association's plea for stable funding resources dedicated to sustainable tourism practices.
Nasu Town has witnessed a remarkable recovery in tourism, with a return to pre-COVID-19 visitor levels—the town tallied approximately 5 million visitors in 2023, marking the first time since 2010 that it has reached that benchmark. Remarkably, the number of foreign overnight guests surged fourfold, reaching around 15,000 people. This trend underscores the urgent need for strategies accommodating the evolving demographics of visitors, as highlighted by a representative from the Nasu Town Tourism Association, who stated, "We aim to support sustainable tourism development in the face of changing visitor demographics."
However, amid this tourism revival, the town faces pivotal challenges. Predictions from the Nasu Town Tourism Strategy Council forecast a population decline of about 4,000 residents by the year 2030. With a current population of approximately 24,000, this decrease raises alarms over future economic sustainability. As noted in the council's findings, if the annual consumption per resident remains at around 1.3 million yen, the projected population drop could inflict a staggering economic loss of approximately 5.2 billion yen—making it increasingly difficult to maintain the town's economic viability in the long term.
In conclusion, Nasu Town's introduction of an accommodation tax reflects a proactive response to current and emerging challenges in the tourism sector. By securing stable financial resources, the town aims to sustain its status as a premier tourist destination while addressing the potential economic fallout from population decline. As the implementation date approaches, the community remains hopeful that the new tax provisions will yield the necessary funding to support both robust tourism infrastructure and the environment, fortifying the town’s economic future.
