- Kyoto will implement Japan's highest-ever hotel tax starting in 2026 to fund sustainable tourism
- The tax aims to address overtourism while preserving Kyoto's cultural heritage and infrastructure
- Revenue from the tax is earmarked for public transport, waste management, and heritage preservation
Japan's tourism boom has brought in record numbers of travellers - but also fresh challenges. In response, the iconic city of Kyoto is set to implement Japan's highest-ever hotel tax, aiming to balance economic growth with sustainable tourism. The move, approved after months of deliberation, is designed not to discourage visitors but to ensure that tourism contributes to the city's long-term preservation and management, reported Euronews.
Kyoto's New Hotel Tax: What Travellers Need To Know
Following a record-breaking 36.9 million international visitors in 2024, Japan's Ministry of Internal Affairs and Communications has approved a new, tiered hotel tax in Kyoto - marking the city's first increase since the system was introduced in October 2018.
The new levy, confirmed on October 3, 2025, will come into effect next year and is expected to more than double Kyoto's annual accommodation tax revenue from ¥5.2 billion (around ₹301 crore) to ¥12.6 billion (around ₹730 crore).
Currently, the tax is capped at ¥1,000 per night (approximately ₹580), but the revised rates will vary depending on the room price.
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How Much Tax Will Tourists Pay Now
Under the new system, travellers will be charged different amounts based on their accommodation type and room rate:
- Luxury hotels: A tax of ¥10,000 per night (about ₹5,800) for rooms priced above ¥100,000.
- Mid-range stays: Rooms costing between ¥50,000 and ¥99,999 will incur a ¥4,000 (₹2,322) tax per night.
- Standard stays: Rooms priced between ¥20,000 and ¥49,999 will have a ¥1,000 (₹580) tax.
- Budget hotels: Stays between ¥6,000 and ¥19,999 will see a ¥400 (₹232) charge per night.
- Low-cost stays: Any accommodation under ¥6,000 (₹3,484) will attract a ¥200 (₹116) tax.
Battling Overtourism Without Discouraging Tourists
The sharp rise in global tourism to Japan - with visitor numbers jumping 15.6% above pre-pandemic levels - has raised concerns about overtourism in Kyoto, a city known for its temples, traditional machiya townhouses, and narrow streets.
While the tax increase might sound steep, it's not intended to keep tourists away. Instead, officials say the goal is to make visitors contribute to maintaining the city's cultural charm, infrastructure, and cleanliness.
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What Will Japan Do With The Extra Tax Amount?
The funds collected will be reinvested in areas such as public transport, waste management, and heritage preservation - all essential to keeping Kyoto's visitor experience world-class.
Experts Say Any Negative Impact On Japan Tourism Will Be Minimal
According to travel industry experts cited by Euronews, such levies usually have "little negative impact" on tourism if they're tied to improving visitor experiences.
"Travellers choosing premium accommodation are motivated by quality and authenticity," one expert noted. "When they see their contribution supports sustainability and enhances the destination, it actually enriches their overall experience."
With its new tax policy, Kyoto hopes to strike a balance by keeping its doors open to the world while ensuring that tourism growth remains both manageable and meaningful.
