Kyoto Introduces Japan’s Highest Hotel Tax to Curb Overtourism and Support Sustainable Travel

The City of Kyoto has announced a major update to its accommodation tax system, unveiling Japan’s highest hotel tax rates in a bid to promote sustainable tourism and address growing concerns over overtourism. The new five-tiered tax structure will take effect in March 2026, with rates ranging from ¥200 to ¥10,000 (approximately US$1.30 to US$65.60) per person, per night.

Under the revised system, guests staying at accommodations priced between ¥6,000 and ¥20,000 per night will be charged a ¥400 tax, while those staying at luxury properties charging ¥100,000 and above will face the maximum rate of ¥10,000 per person, per night.

This marks a significant increase from Kyoto’s current three-tiered system, which has remained unchanged since its introduction in 2018, with rates between ¥200 and ¥1,000 per night. The new policy aims to ensure that tourism contributes more effectively to the city’s infrastructure, cultural preservation, and community welfare initiatives.

Certain groups, including students on school trips accompanied by chaperones, will remain exempt from the tax.

City officials have emphasized that the measure is part of a broader effort to balance Kyoto’s global appeal as a heritage-rich destination with the well-being of its residents. Over the past few years, Kyoto has drawn record numbers of visitors, leading to challenges such as congestion, strain on public services, and environmental impact.

“Kyoto welcomes visitors from around the world, but sustainable tourism requires shared responsibility,” said a representative from the Kyoto City Tourism Policy Department. “This adjustment will help us preserve the city’s cultural and natural heritage while enhancing the overall experience for both visitors and locals.”

With this move, Kyoto will surpass major Japanese cities such as Tokyo and Osaka, setting a new national benchmark for hotel accommodation taxes.