Kyoto imposes massive tourism tax on visitors

The Japanese city of Kyoto, struggling to deal with overwhelming crowds of tourists, this week unveiled plans for a whopping increased accommodation tax. 

Taxes will rise to up to 10,000 yen (about $100) per person, per night - starting from March 1, city officials announced.

The new rate, a tenfold jump from the current 1,000 yen/$10 maximum, is designed to fund infrastructure improvements and initiatives aimed at easing congestion across the city’s popular districts, news hub Travel Mole reported. .

Under the new tiered system, the 10,000-yen levy will apply to hotel stays costing 100,000 yen or more per night. Kyoto will then have the highest lodging tax in Japan, the Ministry of Internal Affairs and Communications said.

City officials say the measure comes after years of frustration over constant tourist crowds; from packed city buses to throngs of visitors overwhelming historic sites and narrow streets.

In its application to the ministry earlier this year, Kyoto argued that “tourists must also share the cost of measures against overtourism.” The increase marks the first adjustment since the tax was introduced in 2018.

Students and teachers on school trips will remain exempt from the taxes.

Following the increase, Kyoto expects its annual lodging tax revenue to nearly double from 5.9 billion yen this fiscal year to 12.6 billion yen next year, based on city projections. 

The change comes amid a surge in luxury hotel development. Tokyo-based Imperial Hotel Ltd. is set to open Imperial Hotel, Kyoto, in March 2026 in the city’s Higashiyama Ward. 

The property will incorporate the façade of Yasaka Hall, a registered cultural property in Kyoto’s Gion district; regarded as the heart of geisha culture. Room rates are expected to start at 164,500 yen per night.

Images: Winsor Dobbin