AsianFin -- Kyoto, Japan, is set to increase its accommodation tax, with plans to raise the maximum fee charged to guests from the current range of ¥200-¥1,000 per night to a maximum of ¥10,000. As per to an announcement released on Tuesday, the proposed tax hike, if approved, will make Kyoto's accommodation tax the highest in Japan.
The city expects the new tax policy to generate approximately ¥12.6 billion, more than double the current amount. The increased revenue will be allocated toward improving transportation infrastructure and enhancing measures to address the challenges of "overtourism." This move is aimed at managing the growing number of visitors to Kyoto, a popular cultural destination that has been struggling with overcrowding in recent years.
Kyoto city officials plan to submit a bill to amend the current ordinance to the city council in February. If the amendment is approved and after necessary processes, including approval from Japan's Ministry of Internal Affairs and Communications, the revised tax will come into effect on March 1, 2026.
This step is part of Kyoto's ongoing efforts to balance the benefits of tourism with the city's capacity to manage visitor numbers while preserving its historical and cultural heritage. The new tax policy is expected to help Kyoto better cope with the pressures caused by mass tourism and improve its tourism infrastructure.
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