| By Eliana Pisons |

Kyoto Raises Accommodation Tax to Combat Overtourism

Kyoto City has announced plans to increase its accommodation tax, setting a new maximum rate of 10,000 yen per night. This measure, set to take effect in March 2026, aims to address the sustainability challenges posed by overtourism, which has put significant pressure on the city’s infrastructure and residents. Once implemented, this will be the highest lodging tax in Japan.

Overtourism Strains Local Infrastructure

The current accommodation tax system, introduced in 2018, charges visitors up to 1,000 yen per night. However, with the post-pandemic surge in tourism, Kyoto has faced issues such as overcrowding, environmental strain, and rising living costs for residents. By significantly raising the tax, the city hopes to generate revenue for infrastructure maintenance and tourism management while discouraging excessive tourist inflows.

Balancing Tourism with Sustainability

This tax hike reflects the broader national debate about balancing tourism’s economic benefits against the need for cultural and social sustainability in popular destinations. While Kyoto relies heavily on tourism revenue, many residents express frustrations over the negative impacts of overcrowding on their quality of life and rising housing costs.

The increased tax aims to fund essential preservation projects and urban improvements to maintain Kyoto’s cultural heritage and support local communities. However, it may also divert budget-conscious visitors to less expensive nearby cities, potentially reducing Kyoto’s tourist-related income. This shift in tourist flow could strain the smaller neighboring cities’ infrastructures, which may struggle to accommodate the increased number of visitors and provide adequate services.

An Economic Necessity with Social Undertones

The Kyoto accommodation tax increase primarily functions as an economic and regulatory measure against overtourism, not as an act of xenophobia. Rising concerns about overcrowding and environmental strain, coupled with increasing living costs in the city, have led officials to focus on managing tourism’s impact rather than specifically discouraging foreign visitors.

Sociologically, however, some might interpret stricter tourism policies — particularly in light of past frustrations over disruptive tourists, especially in areas like Gion — as reflective of broader tensions in Japan around foreign presence. For foreign residents in the country, this increased tax could aggravate concerns over Japan’s approach to non-domestic communities.

The Path Forward: Preserving Culture, Encouraging Tourism

Ultimately, Kyoto’s new tourism tax must effectively reinvest revenue into local communities to tackle overtourism’s impact on infrastructure, the environment, and residents’ lives. Additionally, the tax should ease tourism-related strains without unintentionally discouraging respectful visitors who benefit Kyoto’s economy and cultural heritage. Balancing these objectives will be vital for the city’s long-term appeal and sustainability.

All Photos Credit: Kiyomizu-Dera, Kyoto