A few months ago, I wrote about how authorities in Kyoto were considering greatly increasing taxes on the most expensive hotels in the city, in order to discourage overtourism. There’s now an update, as the city has passed this ordinance, and now it just needs to be approved by the internal affairs minister.
In this post:
Kyoto will add $130+ nightly tax for luxury hotels
While Kyoto has long been popular with international tourists, it has really exploded in recent years, and at this point we’re seeing just about every major luxury hotel group open a property there.
As it currently stands, hotel rates in Kyoto have a nightly consumption tax of 10%, a variable occupancy tax based on the cost of a stay, and then a lot of hotels also have a 10% service charge added on to the rate.
When it comes to the occupancy tax, that was introduced in 2018, and currently uses the following three tiered system:
- If a room costs less than 20,000 JPY, the nightly occupancy tax is 200 JPY per person
- If a room costs between 20,000 and 49,999 JPY, the nightly occupancy tax is 500 JPY per person
- If a room costs 50,000 JPY or more per night, the nightly occupancy tax is 1,000 JPY per person
Under the newly passed ordinance, this system will be updated as of March 1, 2026. This will go from a three tier system to a five tier system, with a significant increase in the occupancy tax for the most expensive hotels:
- If a room costs less than 6,000 JPY, the nightly occupancy tax will be 200 JPY per person
- If a room costs between 6,000 and 19,999 JPY, the nightly occupancy tax will be 400 JPY per person
- If a room costs between 20,000 and 49,999 JPY, the nightly occupancy tax will be 1,000 JPY per person
- If a room costs between 50,000 and 99,999 JPY, the nightly occupancy tax will be 4,000 JPY per person
- If a room costs at least 100,000 JPY, the nightly occupancy tax will be 10,000 JPY per person
Based on the current exchange rate, one USD is roughly 150 JPY. So to convert the above amounts, a hotel costing at least $664 per night would have a $66 occupancy tax per person per night. In other words, based on double occupancy, you’d be paying $132 per night, just for the occupancy tax (and that doesn’t include the 10% consumption tax or the 10% service charge at many properties).
Note that this occupancy tax even applies to bookings with points, unlike the consumption tax and service charge.
Is this additional tourist tax unreasonable?
Kyoto’s current hotel occupancy tax scheme reportedly generates around $34.5 million per year, while the city estimates that the new scheme will raise around $84 million per year, so that’s quite a substantial increase.
What’s my take on this tourist tax increasing substantially? I think the first major question is how the extra money will be spent. There’s no denying that day-to-day life in Kyoto has been changed for locals as a result of the amount of tourism. In principle, I don’t think it’s unreasonable to tax tourists in a way that makes the lives of locals better. Hopefully the money is actually spent in a good way, to help with the tourism problem.
Beyond that, here are a few thoughts that come to mind:
- I don’t actually think this change will do much to curb tourism, as I don’t think this will move the elasticity of demand for most people visiting Kyoto; hotel rates in Kyoto are through the roof, and that doesn’t seem to be deterring visitors
- This will ultimately penalize not just foreigners, but also Japanese tourists coming from other parts of the country; that has to be factored in, especially with their reduced buying power due to the weak Japanese Yen
- Perhaps in some cases it will cause more people to take day trips to Kyoto, and I’m not sure that will necessarily help with reducing tourism
Bottom line
Kyoto authorities have approved a plan to greatly increase the occupancy tax for hotels, in response to the amount of tourism. This will take effect as of March 2026, and luxury hotels will be hit hardest, and will see the daily per person occupancy tax increase from 1,000 JPY to 10,000 JPY. This means that a luxury hotel room with double occupancy will have a $132 daily tax, in addition to the standard 10% tax plus the 10% service charge.
What do you make of Kyoto’s plans to greatly increase occupancy taxes for hotels?
Absolutely welcome this move. Kyoto was once my favourite city in Japan to visit, one of my very favourite in the whole world in fact. Now, it's absolutely heaving with people - the temples, shrines and religious sites have lost their peace and tranquility, the quiet streets are no more. Everything that was so special about Kyoto has been heavily diluted in the past 5-10 years (sans COVID). If this helps reduce overcrowding even slightly,...
Absolutely welcome this move. Kyoto was once my favourite city in Japan to visit, one of my very favourite in the whole world in fact. Now, it's absolutely heaving with people - the temples, shrines and religious sites have lost their peace and tranquility, the quiet streets are no more. Everything that was so special about Kyoto has been heavily diluted in the past 5-10 years (sans COVID). If this helps reduce overcrowding even slightly, then it's very worth it to help the city rediscover some of its charm.
in addition to this, please note that since recently several smaller side streets around Gion are banned and tourists walking in them incur into a hefty fine.
FYI, school trippers visiting Kyoto and stay in Kyoto will be exempted from this tax. However, university-level schools and foreign-based schools are not eligible.
Honestly I don't think this would really help reduce over-tourism by much. Shin-Osaka is 15minutes away on Shinkansen so just get a RailPass and you're covered for the trip back to your Osaka hotel. That's what I've done so far anyway!
I’m in Kyoto at the moment. It’s been the only place (even during Sakura season) where Japan has felt overrun with tourists. It reminds me of the worst excesses of Venice in some parts. It’s an impossibly pretty place, perhaps limits on numbers at particular locations (Fushimi Inari for example) need consideration.
The first time we visited fushima inari in 1999, I think there were about 20 other visitors on the grounds. How times change, not always for the better.
The easiest way to eliminate crowd is upping prices. Higher the price, lesser the crowd. It’s just simple economics. What they should do just charge people $200 “entrance fee” per person per day except for students. This will quickly thin out the crowd and problem solved. If $200 per person doesn’t do the trick, make it $400 etc. By adding tax onto local hotels isn’t going to help because people will just take train from...
The easiest way to eliminate crowd is upping prices. Higher the price, lesser the crowd. It’s just simple economics. What they should do just charge people $200 “entrance fee” per person per day except for students. This will quickly thin out the crowd and problem solved. If $200 per person doesn’t do the trick, make it $400 etc. By adding tax onto local hotels isn’t going to help because people will just take train from Osaka. I was there at end of January and crowd was insane. I would gladly pay $ for a less crowded experience.
"This will ultimately penalize not just foreigners, but also Japanese tourists coming from other parts of the country"
Why do you think the lower two tiers have such a low tax in proportional and absolute terms? Another commenter was concerned for all the students visiting. Rest assured, they're not staying at the Park Hyatt Kyoto.
We should bomb them again, and make them part of America, that way, we can remove this discriminatory action from these backwards people.
Anyone who tries to take more from us Americans should be bombed until they submit, we're the greatest nation on the earth and people should be grateful we exist.
Even as satire, this is disgusting.
I don’t think we need to bomb them. But need to make sure the communists running Hawaii are flying the American flag at all public buildings. They need to be reminded that Hawaii is of American identity, not Japanese or British like the weird flag they fly.
I don't think the amount is trivial. Yes there is lots of money being spent there, but outside of peak times the luxury hotels are not _that_ expensive and they're also fairly empty. I think it'd make more sense to do this during certain times of year. Venice has started charging to enter the city on certain peak days, for example. A city pass to make sure people busing in for the day etc would...
I don't think the amount is trivial. Yes there is lots of money being spent there, but outside of peak times the luxury hotels are not _that_ expensive and they're also fairly empty. I think it'd make more sense to do this during certain times of year. Venice has started charging to enter the city on certain peak days, for example. A city pass to make sure people busing in for the day etc would also make a lot more sense. I could imagine people just staying further out or in Osaka and getting a (v fast) train into the city.
Either way - not sure this will curb first time tourism. And I'm not sure it makes all that much sense outside of a money grab. Given I'm lucky enough to be heading to Kyoto for sakura shortly and I've been before, I'd definitely think again before going back with these taxes in place.
And. As much as I hate this on some sort of fairness principal, if they're genuinely concerned about mass tourism - tax the cheaper hotels and buses entering the city.
This blog is littered with justified complaints about sneaky and extortionate "resort convenience" or compulsory parking fees inflicted on suffering hotel guests in America.
Therefore, Kyoto's taxes seem high only for those rooms in the highest price range. I don't really see it would deter tourists, unless yen is strengthening, or were Japan to fall out of favour with international visitors.
as expected, a few of you were determined that you would mock Ben and his crackdown on fake user names that mock other users.
Those that want to see less of some people might want to tap Ben on the shoulder and tell him to follow through on his policies on fake user names.
...but you are such a snowflake. Toughen up a bit.
they are Ben's rules, not mine.
Snowflake Tim strikes again!
Tax is steep, but many cities employ similar (if not as draconian) schemes.
Fascinating, the sneering derision directed at tourists as a collective, often with little distinction between respectful and disrespectful visitors. Tourists often arrive after a region actively promotes itself as a destination. Then the grumbling begins, again, often with little distinction between travelers with good or poor behavior.
While I understand there is an impact on local infrastructure when loads of travelers turn...
Tax is steep, but many cities employ similar (if not as draconian) schemes.
Fascinating, the sneering derision directed at tourists as a collective, often with little distinction between respectful and disrespectful visitors. Tourists often arrive after a region actively promotes itself as a destination. Then the grumbling begins, again, often with little distinction between travelers with good or poor behavior.
While I understand there is an impact on local infrastructure when loads of travelers turn up, it seems bad form to tar nice, well meaning visitors with the same brush as obnoxious ones.
is it also charged for domestic tourists, i.e, japanese visiting from tokyo etc? Many japanese visit Kyoto, including high school students... Also, did you notice the increase in tax for Paris and Amsterdam as well? It is a bit insane
Seems like it applies to hotel rooms. So if any person, foreign or domestic, gets a hotel room in Kyoto the tax applies based on the room rate. For the cheapest rate bracket, a 200 yen tax is 6.6% of a 6k yen room assuming double occupancy. Not nothing, but not exorbitant either and I can definitely see hotels having very low negotiated rates to begin with for domestic schools or tour groups. This tax...
Seems like it applies to hotel rooms. So if any person, foreign or domestic, gets a hotel room in Kyoto the tax applies based on the room rate. For the cheapest rate bracket, a 200 yen tax is 6.6% of a 6k yen room assuming double occupancy. Not nothing, but not exorbitant either and I can definitely see hotels having very low negotiated rates to begin with for domestic schools or tour groups. This tax honestly is pretty progressive, the highest rates hit the highest hotel room costs and therefore the highest income travelers, who also happen to be the people most able to absorb the tax. I doubt it will reduce tourism, since that would be detrimental overall to the city's finances, but it will be a helpful boost to the city's income.
The horde of tourists won't stop by doing so.
They will just book a hotel in Osaka and then will come to Kyoto.
Maybe a W for JR & Hankyu.
Otherwise, very Japanese bureaucratic decision with no knowledge on the situation of gemba.
I suppose when you travel, you're not a part of the horde. Is that right?
It depends?
The horde never tries to understand the local customs/rules and just act the way they do in their homelands.
The quantity isn't the key factor that make them the horde. If they're at least civilized, then mostly no problem.
I'm at a position opposing them, so I hope this answers your question. Or maybe this was an accusation.
Nice try, though.
Sincere question. Several commenters seem to paint all other tourists other than themselves as this big "other" group, regardless of their behavior. You clearly have a much more specific definition of "the horde", and I think your characterization is fair. There's a lot of cringe behavior out there.
My question was also inspired by a moment of self reflection. My MO is to be mindful of local customs whether at home or abroad. So we're...
Sincere question. Several commenters seem to paint all other tourists other than themselves as this big "other" group, regardless of their behavior. You clearly have a much more specific definition of "the horde", and I think your characterization is fair. There's a lot of cringe behavior out there.
My question was also inspired by a moment of self reflection. My MO is to be mindful of local customs whether at home or abroad. So we're likely aligned philosophically. Cheers!
Guess we were on the same page.
Sorry for misunderstanding, have a great rest of your day.
It's quite to stay disarmed in here, you know
No worries at all.
You're right, comment sections have been a minefield of late.
Great day to you as well.
Japan should just ban hop on hop off buses.
Instantly Dumb Americans will boycott the country as they will have no idea how to travel. Over tourism (and obesity tourism) solved! And much more pleasant for tourists visiting from elsewhere.
Do you ascribe certain moral and ethical associations with obesity?
By grouping 'obesity tourism' with overtourism, you seem to be making a negative association. Do you believe that obese people should not travel?
You're doing it wrong, Kyoto. Tax what you want less of. Do you really want fewer luxury tourists? No, you want fewer budget travelers that don't spend money and act low class. So if anything you should be charging a budget hotel traveler tax. Just charge a hotel tax as a flat fee on a per person basis. While you're at it, an air arrivals tax targeting LCCs would help too, in the same manner (per person, not % of ticket price).
"While you're at it, an air arrivals tax targeting LCCs would help too"
Quelle horreur! Are you telling me that the unwashed masses from low-cost countries have the temerity to travel to the same destinations you and I enjoy?
"you should be charging a budget hotel traveler tax"
Also, I strongly agree that we need to make life more difficult for the poor who stay in budget hotels. They've had it far too easy for far too long if you ask me.
Why do the OMAAT audience support Democrats, when they're rich and hate poor?
I'm not rich and I'm a part of the OMaaT audience. I'm also an independent, for what it's worth.
Data suggests that people with extensive international travel experience would likely be less aligned with "America First" policies. The Pew data shows that 57% of "globe-trotters" (those who have visited 5+ countries) believe the U.S. should be active in world affairs, and they're particularly likely to support taking other countries' interests into account when making foreign...
I'm not rich and I'm a part of the OMaaT audience. I'm also an independent, for what it's worth.
Data suggests that people with extensive international travel experience would likely be less aligned with "America First" policies. The Pew data shows that 57% of "globe-trotters" (those who have visited 5+ countries) believe the U.S. should be active in world affairs, and they're particularly likely to support taking other countries' interests into account when making foreign policy decisions, even if that requires compromises.
This outlook, combined with their stronger feelings of connection to people around the world, suggests they would generally favor multilateral cooperation and global engagement over policies that prioritize American interests exclusively or minimize international commitments.
Also, Mason's "LCCs and the Poors" is clearly using satire to make a point, à la "A Modest Proposal."
I have been twice and this might stop my going again.
Or else I might do the odd day trip from Osaka or some such.
10% per person plus the other fees is just too much.
Your last sentence is kinda the point.
tourism does put a strain on infrastructure in some parts of the world - and this is a slap in the face to global tourism which most Japanese don't like but tolerate.
and yet people get completely overworked about tariffs on manufacturing between the US and Canada
The fact you’re a MAGA apologist is surprising to me but explains soooooo much lol
you slap labels on anyone that has an opinion that is different than yours.
No, I am not an apologist for anything.
I do try to get to the point of what entities are trying to do.
Trump wants more US manufacturing and Kyoto wants less people trooping around.
Will both undoubtedly create some damage in the process of achieving their goals which they will likely achieve at least part of? you bet.
People...
you slap labels on anyone that has an opinion that is different than yours.
No, I am not an apologist for anything.
I do try to get to the point of what entities are trying to do.
Trump wants more US manufacturing and Kyoto wants less people trooping around.
Will both undoubtedly create some damage in the process of achieving their goals which they will likely achieve at least part of? you bet.
People invariably are incapable of understanding the objectives of policies and the rational basis for it - and fly off the handle in response.
The same thing is happening w/ all of the changes w/ Southwest.
The US will get more manufacturing jobs - perhaps at the expense of some lower-value tourism visits, Kyoto will decrease tourist visits, and WN will survive and become more profitable in the process.
I am able think something far too few people in their participation in social media, including airline/aviation social media.
I wonder if your tolerance for MAGA come from the positive comments Delta CEO Ed Bastian made about Trump...
@Tim Dunn...told you earlier as well...you hardly make sense when defending Delta, don't try on other things. You just ain't got it. Also, it is ok to be quite and be thought of as a stupid than to open your mouth and remove all doubts.
Comparing tourist tax with tariffs, is a new low even from your own "high" standards.
Apple and oranges. Tariffs are an additional cost that must be passed, to varying degrees to the US consumer. It also fuels inflation within the U.S. border.
The effect on the increased hotel taxes, however successful it is, will be borne by the Japanese workers, restaurants owners, etc. The effect on a U.S. citizen may be to select an alternative destination or simply make day trips from Osaka. A much lighter burden that the effect...
Apple and oranges. Tariffs are an additional cost that must be passed, to varying degrees to the US consumer. It also fuels inflation within the U.S. border.
The effect on the increased hotel taxes, however successful it is, will be borne by the Japanese workers, restaurants owners, etc. The effect on a U.S. citizen may be to select an alternative destination or simply make day trips from Osaka. A much lighter burden that the effect of US tariffs throughout the US economy.
To state the obvious; it is correct to be concerned with US tariffs because they will have a pervasive effect throughout the US economy. In addition, recipients of those tariffs may (as some have already done) retaliate resulting in U.S. products becoming relatively more expensive compared to the products of other nations. The can result in lower exports and higher domestic unemployment.
Meanwhile Nagoya (Aichi Prefecture) is desperate to increase tourism (off a low base)...
Nagoya is a boring city, they don't have that many tourist attractions even Japanese understands that. However Nagoya is a good pitstop for the trips to Ise(Mie Prefecture) and Gifu Prefecture
I think something must be done. I was there two years ago and it was really unpleasant. So much so that I don’t wish to ever return. Chock full of tourists, including on subways and buses. I’d be very unhappy if I was a local.
So was I, in peak fall color season. That being said, it entirely depended on where you were. Bamboo trail in Arashiyama? Packed. Fushimi-Inari Shrine after 9AM? Packed. Kyoto Gyoen National Garden in the middle of the day? Near empty. Arashiyama Kameyama Park (south of the bamboo forest) in the middle of the day? Near empty and beautiful views of the canyon the Katsura river flows through. None of the public transit was bad either...
So was I, in peak fall color season. That being said, it entirely depended on where you were. Bamboo trail in Arashiyama? Packed. Fushimi-Inari Shrine after 9AM? Packed. Kyoto Gyoen National Garden in the middle of the day? Near empty. Arashiyama Kameyama Park (south of the bamboo forest) in the middle of the day? Near empty and beautiful views of the canyon the Katsura river flows through. None of the public transit was bad either except for the trains on the Keihan and Nara lines to Fushimi Inari in the morning, plus the actual fall colors Sagano tourist train. Yeah the big sightseeing spots are big sightseeing spots for a reason, but the second you go a block or two away 99% of the tourists disappear.
I hope Kyoto implements a tariff on American tourists. They have destroyed Japan with their arrogance and third world fascism
@BZ do you really just think Americans are arrogant? Anyone from any country can be arrogant. Also, your hope will never be realized because no government or business would ever levy a tax on a certain group of people.
BZ,
as an American I’ll say my fellow countrymen aren’t terribly arrogant across the board… no, the better term is Americans a full of HUBRIS. Most of my
good ole red white and blue brethren are the definition of acting with hubris.
According to Google AI, which only pure hubris could have unleashed in such an unchecked fashion:
“While arrogance is a general attitude of superiority, hubris is a more specific...
BZ,
as an American I’ll say my fellow countrymen aren’t terribly arrogant across the board… no, the better term is Americans a full of HUBRIS. Most of my
good ole red white and blue brethren are the definition of acting with hubris.
According to Google AI, which only pure hubris could have unleashed in such an unchecked fashion:
“While arrogance is a general attitude of superiority, hubris is a more specific and dangerous form of arrogance that can lead to disastrous consequences”
We can all see a few cases in point going on around us right now I’m sure
So would a Hyatt award stay incur taxes? Usually it is completely free.
@UnitedEF the hotels would consider award stays as points stay regardless so I would believe that the upcoming tax scheme would apply to all stays. Whenever I have used award stays, front desk or customer service would refer to those as points stays. Also, I am sure the local government does not care how you would book it as long as you are staying for a night you need to pay the tax accordingly. It...
@UnitedEF the hotels would consider award stays as points stay regardless so I would believe that the upcoming tax scheme would apply to all stays. Whenever I have used award stays, front desk or customer service would refer to those as points stays. Also, I am sure the local government does not care how you would book it as long as you are staying for a night you need to pay the tax accordingly. It would be awkward on their part if award stays were excluded from this new tax scheme.
answer is in the article
It should be based of the internal comp rate, which is usually 5-10% of the lowest cash rate.
I suspect loads of tourists will still visit the most popular sites each day, they'll just get the train in from other areas to save on the tax. Local hotels will be the losers here.
Agreed, but it will be the mid-range and budget properties that will be impacted. This won't affect the top properties at all.
If it doesn’t reduce the tourist number then at least the citizen of Kyoto will benefit from the higher budget the city will have at its disposal. Tourists should contribute to the places they visit and this seems like a pretty equitable way of ensuring that happens.
Kyoto's municipal budget has been on the brink of bankruptcy (Google it) and the only reason it is able to maintain services local residents have come to rely on is because of the significant economic contributions from tourism.
Ouch. So glad I've planned my trip to Kyoto this year.