Kyoto Increases Hotel Tax Maximum To 10,000 Yen Per Night/Person In Effort To Curb Tourism

As one of the most sought after destinations in Japan, Kyoto has decided to raise the hotel tax which will soon cap out at 10,000 Yen per night/person for the most expensive properties in the city. The hotel tax, which is currently in place, has […]

Mar 27, 2025 - 03:40

As one of the most sought after destinations in Japan, Kyoto has decided to raise the hotel tax which will soon cap out at 10,000 Yen per night/person for the most expensive properties in the city.

The hotel tax, which is currently in place, has a maximum tax rate of 1,000 yen for stays costing 50,000 yen or more, and this new proposal would 10x the maximum amount for the highest priced hotels from March 2026.

Charging a progressive hotel tax based on the charge per night is not unreasonable, but on the other hand, it’s a double-edged sword, as Kyoto’s overcrowding is really the result of their own doing and overmarketing.

One way to avoid the tax altogether is to use points at these hotels, which brings the rate down to the minimum tax of 200 Yen. Therefore, one is unaffected by any changes to this fee.

Kyodo News reports that the new system will come into effect from March 1, 2026:

The Kyoto city assembly approved Tuesday sharply raising the lodging tax for people staying at hotels and other accommodations in the ancient Japanese capital, with a maximum rate of 10,000 yen ($66.40) for stays costing 100,000 yen or more per person per night.
Until now, the highest tax rate was 1,000 yen for stays costing 50,000 yen or more. The city, heavily impacted by a surge of tourists in recent years, plans to charge the new rates to visiting guests from March 1 next year.
Under a revised ordinance, the rates will be 200 yen for stays costing under 6,000 yen per person per night, 400 yen for 6,000 yen to under 20,000 yen, 1,000 yen for 20,000 yen to under 50,000 yen, 4,000 yen for 50,000 yen to under 100,000 yen, and 10,000 yen for 100,000 yen or more.
The changes are expected to increase Kyoto’s lodging tax revenue to about 12.6 billion yen a year from 5.2 billion yen in fiscal 2023.
The city intends to put the revenue toward measures to deal with overtourism and infrastructure development, including disaster prevention measures.

Up to 10,000 Yen per night and per person is over the top, call it however you want. Sure, you can argue that someone who pays this much for such expensive hotels shouldn’t make much of a difference, but I slightly disagree. We’re talking about a price per person, not per room, after all.

But even less expensive hotels are impacted, and I’d argue that most hotels tourists use are in the 20,000 – 50,000 Yen category, except some low-priced business hotels or in the off-season. The hotels which charge 50,000 Yen upwards also incur a 4,000 Yen fee per person.

Kyoto has had its fair share of problems related to tourism, both in terms of crowds and tourist behavior in general. Will this do anything to help? Probably not. Tourists can just as well stay outside Kyoto and arrive by train.

And despite the constant complaints about too many tourists, Japan has recently announced that the government intends to drive tourism arrivals even further. So, who is really at fault here? You make your bed and you sleep in it.

Conclusion

Hotel rates have soared across Japan in general, and these taxes will impact both Japanese and foreigners alike. To be honest, I’m surprised that Japanese travelers are still able and willing to keep up with these rates as published. I recently wrote about the increase of chain hotel rates in Tokyo which have gone out of control.

Now, Kyoto is the first city to increase the hotel tax by 10 times from up to 1,000 Yen/person/night to 10,000 yen.

Of course, for miles and points enthusiasts, this means it’s even more lucrative to use awards at destinations such as Kyoto, as a zero rate means you only pay the lowest tax of 200 Yen. I wouldn’t be surprised if other Japanese cities follow suit at some point. Maybe not with such a sharp increase, but with a lower amount.

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