Kyoto’s proposal to increase its accommodation tax is unlikely to deter tourists, according to key players in the travel industry. The city aims to boost its tax revenue from 5.2 billion yen (US$34.7 million) in 2023 to 12.6 billion yen annually, which is expected to support the local tourism sector without reducing demand.
The proposed tax hike, which is set to take effect on March 1, 2026, will apply to accommodations priced over 6,000 yen per night. Under the new structure, stays costing between 6,000 yen and 19,999 yen will incur a 400 yen tax, while those paying 100,000 yen or more per night will face a 10,000 yen tax. Stays under 6,000 yen per night will remain at the current tax rate of 200 yen.
The funds generated from the increased tax will be used to support the preservation of Kyoto’s traditional buildings, enhance public transportation infrastructure, and improve tourism marketing. These efforts aim to make Kyoto a more sustainable destination for travelers.
Industry experts believe travelers will view the new tax as a necessary contribution to preserving the city’s cultural heritage, rather than a barrier to visiting.
Ching Yee Wong, Vice President of Communications for Marriott International in Asia Pacific (excluding China), noted, “Our portfolio continues to attract strong interest from travelers eager to experience Japan’s rich cultural heritage and unique attractions.”
Shizuka Takahashi, the innkeeper at the upscale ryokan Momoyuya in Kyoto’s Higashiyama district, added, “For those dreaming of staying in Kyoto, the accommodation tax is minimal, even for luxury accommodations like ours. The tax will help improve local amenities and attractions, ensuring that future visitors enjoy their stay even more.”
A spokesperson from Hotel Light, a mid-range property in the city, also shared similar sentiments, stating that the new tax is unlikely to affect demand. “Kyoto will remain a priority destination for both international and domestic visitors,” they said.
Overall, tourism in Kyoto is expected to remain strong, with industry players confident that the tax increase will help improve the city’s offerings without impacting its popularity.
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