Kyoto eyes raising city lodging tax to up to 10,000 yen per night

Cities that do this often find themselves making some amount of money initially, before tourists find cheaper places to visit and then they stagnate.

Most of the pests won't be paying ¥100000/night. So another measure unlikely to achieve any results.

It could produce fewer tourists.

@Wallace - not "could".

"Will".

They'll have a major undertourism problem if they do that.

What will it take for government brainiacs to realize that excessive taxation always disincentivizes an activity?

Reducing tourists is the aim. Overtourism is a real problem. Places like Venice and Barcelona suffer from it. It reduces the experience for tourists and affects the quality of life for locals.

Of course they want tourists, but it's a delicate balancing act trying to control a boom-bust situation like this. In some cases uncontrolled overtourism caused way more damage to the local economy than measures introduced to control it.

This is a good idea. Locals are sick of the foreign tourists littering and making trouble everywhere they go. Hopefully only good tourists will visit now.

Hopefully only good tourists will visit now.

Corrected it for you: Only tourists with loads of money will visit now. To the rest of humanity: you're not welcome.

Surprisingly, Kyoto has a significant public debt, largely due to its sizable student population and a relative shortage of large corporations. The suggested ncrease in lodging taxes isn't a response to overtourism but rather an effort to tax tourists and reduce Kyoto's debt burden

Will they use that extra income to pay back the rest of the country for all the money they were given when the cried about not having any Tourists during the pandemic.

Remember they claimed they would be bankrupt multiple times so the National government gave them more money, well pay it back with this boom they are having.

Under the new system, the rates will be split into five tiers, with the highest amount being 10,000 yen per night for accommodation costing 100,000 yen or more per night. The city aims to introduce the new taxes in the spring of 2026.

The 200 yen minimum will remain unchanged, but the threshold will be narrowed from less than 20,000 yen per night to less than 6,000 yen per night.

If someone can afford to pay 100,000 yen or more per night for accommodation, an extra 10,000 is likely to be small change to them.

Will they use that extra income to pay back the rest of the country for all the money they were given when the cried about not having any Tourists during the pandemic.

A valid question, but we all know the answer.

Neighboring Shiga and Nara have no shortage of beautiful places to stay and would appreciate the business!

I would be interested to read how this revenue has been used. Was the revenue used to residents needs? Was the revenue used to improve infrastructure for tourism?

The city introduced a multitiered lodging tax system in 2018. Currently visitors pay 200 yen for stays that cost less than 20,000 yen per person per night, 500 yen for stays ranging from 20,000 yen to under 50,000 yen per night, and 1,000 yen for accommodation costing 50,000 yen or more per night.

Kyoto has a significant public debt, largely due to its sizable student population and a relative shortage of large corporations. 

Yes, the expression "near bankrupt" has been used several times in the past. Other factors usually mentioned are the subway system the city built and the fact that none of the temples pay any tax.

If Kyoto people want their daycares and so many clinics per capita, someone is going to have to pay for them. Nobody will be volunteering to pay more real estate taxes (in Japan, koteishisanzei), the usual solution in the West.

I used to make 3 trips a year to Kyoto for business.

But due to price increases, not only have I stopped going, so have plenty of other dealers from around Japan.

This year (2025) 2 out of 3 trade shows gave pulled out.

They site the increase in the venue costs as the reason and lack of attendees.

Over tourism can maybe account for room rates going up, but tradeshow venues are not tourists places but it seems Kyoto has this thinking that "hey we can charge more and blame over tourism"

These are mostly local trade shows not international.

The February show has just been cancelled due to fewer than half the spaces being booked.

Kyoto is in for a rude awakening in the future, once this tourist boom passes and it has lost other business like these trade shows, then they will cry to the National government for aid again.

Whenever I drive into Kyoto I see quite a few Kyoto plated high end vehicles.

Theres still money in Kyoto from tourism but that might change in the future …

*Under the new system, the rates will be split into five tiers, with the highest amount being 10,000 yen per night for accommodation costing 100,000 yen or more per night. The city aims to introduce the new taxes in the spring of 2026.*

If Kyoto municipal authorities are going to resort to blagging, at the very least make the effort to conceal the deception.

Over tourism, the cowards last resort to justify price gouging,

Instead of smart management to disperse/avert mass tourist crowds.

Currently visitors pay 200 yen for stays that cost less than 20,000 yen per person per night

The 200 yen minimum will remain unchanged

Most tourists would be paying less than ¥20,000 per person per night. So, there are no changes at the bottom end.

I can't see these proposed changes reducing the rise and rise of tourism to Kyoto.

It would be good to see even more promotion of areas outside of Kyoto-Osaka-Tokyo.

This year (2025) 2 out of 3 trade shows gave pulled out.

This sounds like modern capitalism at work. Ply your trade on a reputation of "old stuff" but price all of the sellers of actual old stuff out. Replace them with high end accommodation made out of fake cheap stuff designed to look old.

With 5 tiers, people falling in 10,000 jpy per night category would be very few and won’t care to pay 10% more if they are already paying 100,000 + per night.

If jpy is still weak then this will again have a negligible impact.

Would be good to introduce a quota system to restrict number of tourists that can enter Kyoto per day. But this will increase the costs as all modes of transportations need to be monitored.

If I were charged 10% extra for a ¥100,000 room, not including taxes, it would tip the scales for me.

More than 80% of the tourists are Japanese.

You can't restrict the free movement of the Japanese citizens.

It won't do anything. It' not like Kyoto is in the middle of nowhere. People will just find a place close to Kyoto to spend the night and grab a train in the morning.

I wonder the numbers of tourist day trippers?

For all Kyoto draw, cultural pull.

Competition, pricing, budgets of destination family holidaying, could ultimately determine affordability.

Tourists could stay in Osaka or down by Lake Biwa and travel in.

JapantimeToday 09:01 am JST

This is a good idea. Locals are sick of the foreign tourists littering and making trouble everywhere they go. Hopefully only good tourists will visit now.

maybe if local governments and public establishments would reintroduce trash receptacles trash wouldn't be such a problem! And I used, "reintroduce" as it was once a thing in Japan until the 1995 Tokyo subway sarin gas attack happened and then ironically were disposed of.

Dave Fair: "maybe if local governments and public establishments would reintroduce trash receptacles trash wouldn't be such a problem! "

Yes! Yes!! Yes!!!

up to 10,000 yen per night

That is drastic. Seems that they really dislike the tourists now.

Sounds logical. Chase the high spenders out...you know, the ones who spend the most for Japan's tax coffers, the ones who are statistically the least likely to commit crimes, do dine and dashes, spray paint on shrines and temples etc, etc. Keep the backpackers and the low-rent types and push out the ones who cause the fewest problems. This is such a bad idea, it was probably thought of by some California politician.

What would I get for my ¥10,000 a night tax: zilch.

wallaceToday  08:04 am JST

It could produce fewer tourists.

i guess that’s the whole point until the yen get so strong, the the world economy takes a turn for the worse and the bubble bursts. I hope they take the money NOW, and take 10% of that money and invest it for the future when the bubble does burst. It will burst, we just don’t know when, and if the city has blown all the money, and hospitality is hit, they’ll need something to support the city. Enjoy the good times, but prepare for the worst and have an emergency fund.

What would I get for my ¥10,000 a night tax: zilch.

Not so deeply pessimistic, dear @wallace, consider spending another one or other few 10,000yen notes for not beeing alone during your highly taxed Kyoto night. lol

We lived about an hour's train ride from Kyoto. In Kobe for 16 years. Before COVID, we visited more than 20 times but never needed to stay overnight. We are finished with the city unless there is a great international art exhibition.

They are raising the lodging tax to reduce overtourism, and yet they expect to make a huge amount of money. How does that work?

Overtourism??? What on Earth do they mean? There are more tourists than they have facilities for. So build them! Don't just throw away this chance for business!

Except for the two-year COVID period, the tourist numbers have been consistent. About 80 million with 5 million foreign tourists.

That is drastic. Seems that they really dislike the tourists now.

It's not that they dislike them, but there are far too many of them. Pushing prices up is a wise choice, even if losing some tourists. But the majority will still stay a couple of nights, believe me that.

Lol, then they’ll be complaining that nobody comes any more, sound like a Loop, to you?

For Japan the potential growth prospects in "tourism economics" is undeniable, there has to be a sustainable smart use/management of "tourism".

Kyoto municipal authorities plan to raise the lodging tax for hotels and other accommodation, the overuse of the term over-tourism is akin monetarily to "Looking a gift horse in the mouth".

*

At the city line, there will be a bunch of hotels that don't need to charge that tax springing up. ¥100000/night is a bit steep for a hotel. I routinely stay outside cities with high hotel taxes - and that's in the ¥4000/night range that gets me to stay elsewhere.

Except for the two-year COVID period, the tourist numbers have been consistent. About 80 million with 5 million foreign tourists

You seem to be a few decades off with your calculations there, Wallace. Try around 32,000,000 foreign tourists in 2019, with that numbsr certainly topped last year.

Thank goodness for Japan's frequent train system. See Kyodo for the day and get a hotel outside Kyoto at night.