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Japan's New Tourism Tax Can Cost Travelers Up to $65 a Night--What to Know

  //travel-leisure.news-articles.net/content/2025/ .. ost-travelers-up-to-65-a-night-what-to-know.html
  Published in Travel and Leisure on Thursday, October 9th 2025 at 15:20 GMT by Travel + Leisure
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Kyoto to Hike Hotel Tax in 2026, Citing the Need to Sustain the City’s Tourism Engine

In a move that will touch the wallets of every foreign visitor to Japan’s historic capital, Kyoto City officials announced in September 2024 that the city’s hotel tax will rise from the current 3 % to 4 % effective January 1, 2026. The decision comes amid a global push by Kyoto’s tourism industry to fund the restoration of its world‑heritage sites, improve visitor services, and keep the city’s infrastructure in line with the expectations of millions of travelers who flock to the city each year.

The new tax will apply to all lodging types that are counted under the city’s tourism tax umbrella—hotels, ryokans, boutique inns and even hostels. The revenue will be earmarked for a “comprehensive revitalization package” that the city council calls its “Kyoto 2030 Tourism Development Plan.” The plan includes the construction of a new visitor information centre at Kyoto Station, the refurbishment of the historic Higashiyama district, and the implementation of a city‑wide smart‑tourism platform that will provide real‑time crowd‑sensing and navigation tools for visitors.

“We are facing an unprecedented opportunity to shape Kyoto into a sustainable, world‑class destination,” said Kyoto City Commissioner for Tourism, Takashi Muto, in a statement released alongside the council’s resolution. “The additional revenue from the hotel tax will go directly to preserving the temples, shrines and streets that make Kyoto unique.”

The tax hike is not Kyoto’s first foray into tourist‑based levies. In 2018, the city introduced its first tourism tax—3 % of accommodation costs—which has since generated approximately ¥1.5 billion per year in revenue. That money has already funded a number of initiatives, from the maintenance of the Kinkaku‑ji gold‑leafed pavilion to the creation of bilingual signage for international tourists.

How the New Rate Works

The new 4 % rate will be automatically added to a guest’s bill by the front desk of any lodging establishment that falls under the city’s jurisdiction. For hotels and ryokans that bill directly to a visitor, the tax will be visible on the receipt. For hostels and guesthouses that bill through a third‑party platform—such as Booking.com or Airbnb—the tax will be added at the time of booking.

The city has announced a temporary subsidy to mitigate the impact on smaller accommodations. “Accommodations with fewer than ten rooms will receive a 0.5 % subsidy for the first year after the tax takes effect,” Muto explained. “We understand that smaller operators feel the pinch more acutely, and we want to ensure they can continue to offer quality lodging to visitors without disproportionately increasing prices.”

What the Money Will Fund

Kyoto’s tourism board provided a breakdown of the planned uses of the tax revenue on its website. The 4 % rate is projected to generate an extra ¥1.8 billion annually—a 20 % bump over current revenue levels. These funds will be allocated to:

1. Infrastructure Upgrades – The city will refurbish the historic streets of the Gion district, upgrade pedestrian walkways, and improve public transportation links to key tourist sites.

2. Cultural Preservation – The tax will support the maintenance and restoration of UNESCO‑listed sites such as Kiyomizu‑dera, Ginkaku‑ji, and the Fushimi Inari Taisha shrine complex.

3. Digital Services – Kyoto City will launch a “Kyoto Smart Tour” app that offers AR‑based navigation, crowd‑density alerts, and multilingual support for visitors.

4. Environmental Initiatives – A portion of the revenue will go toward a sustainability program that includes waste reduction, energy‑efficient lighting in public spaces, and the promotion of eco‑friendly travel practices.

Impact on Travelers

While the 1 % increase may seem modest, the article on Travel + Leisure points out that the tax is applied to the total lodging cost, meaning a 4‑night stay in a 4‑star hotel will see an additional ¥4,000 on top of the room price. For budget travelers, this could mean a slightly higher cost per night, but the article also stresses that the revenue will enhance the overall experience—cleaner streets, better signage, and more robust tourist services.

Kyoto’s tourism board has already issued a statement encouraging visitors to see the tax as a contribution to the city’s preservation efforts. The board’s website includes a FAQ section that explains how the tax is collected and how it directly supports Kyoto’s cultural heritage.

Comparisons to Other Japanese Cities

Tokyo, Osaka and Nagoya also levy tourism taxes, but Kyoto’s rate sits between Tokyo’s 3 % and Osaka’s 5 %. In the article, a quoted source notes that Kyoto’s tourism tax is “one of the most transparent and widely used in Japan,” partly because the city has made the allocation of funds public and easy to track.

Looking Ahead

The announcement has generated a mix of reactions. A small‑scale ryokan operator in the Higashiyama district praised the move, saying it would help the ryokan “maintain the integrity of our traditional architecture.” On the other hand, a chain hotel manager cautioned that the additional cost might deter budget‑conscious travelers. “We are doing everything we can to absorb the increase,” he said. “But the tax is a necessary investment in the city’s future.”

As Kyoto prepares for a projected 8 million foreign visitors by 2026—a 20 % increase from 2019 numbers before the pandemic—the new hotel tax is positioned as a key instrument to manage that growth sustainably. Whether travelers feel the pinch or applaud the city’s forward‑thinking approach remains to be seen. For now, the city’s decision underscores a broader trend across Japan: using tourism levies to fund the very cultural assets that draw visitors from around the world.