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Facing the rapid growth of tourists and the associated “overtourism” problems, many local governments in Japan are considering implementing a lodging tax. According to statistics, 12 municipalities have already implemented or plan to implement this tax, while more than 30 regions are currently discussing the possibility of following suit.
Local governments are increasingly concerned about “overtourism,” which adversely affects the lives of residents. They hope that by introducing a lodging tax, they can secure funds to address these issues. The lodging tax is a “statutory non-tax” that local governments can introduce through their own ordinances, but it must be approved by the Minister of Internal Affairs and Communications before it can be implemented.
Currently, 12 municipalities across Japan have already implemented or plan to implement a lodging tax. Additionally, more than 30 municipalities, including Sapporo City and Okinawa Prefecture, are considering doing the same. The 12 municipalities that have already adopted the lodging tax include Kutchan and Niseko in Hokkaido, Tokyo, Atami, Tokoname, Kanazawa, Kyoto, Osaka Prefecture, Nagasaki, Fukuoka Prefecture, Fukuoka City, and Kitakyushu.
Among these, Tokyo was the first to introduce the lodging tax in 2002, under the leadership of then-Governor Shintaro Ishihara. The revenue from the lodging tax has been used to create foreign language travel guides, maps, and establish tourist information centers, enhancing Tokyo’s appeal as an international city. Among the more than 30 municipalities currently discussing the tax, Fuji Kawaguchiko Town and Fujiyoshida City, which have recently struggled with unruly behavior by foreign tourists, plan to implement the lodging tax in fiscal year 2026. In Kumamoto Prefecture, where TSMC’s wafer plant is located, Kumamoto City also intends to introduce a lodging tax in 2026, proposing a fee of several hundred yen per lodging guest. A Kumamoto City official stated, “The tourism industry is indispensable for regional economic development.”
By implementing this tax, local governments aim to generate funds that will help mitigate the negative impacts of tourism on local communities and ensure sustainable tourism development.
