Japan Cracks Down on Overtourism
Japan is rolling out new policies to combat overtourism. Kyoto has dramatically raised its hotel accommodation tax, while the national government is drafting guidelines for "dual pricing" that would allow higher prices for international visitors than for locals.
The surge in tourism has positioned the industry as Japan's second-largest export sector after automobiles, with visitor spending hitting a record 9.5 trillion yen in 2025. The Japanese government aims to attract 60 million foreign visitors annually by 2030, with a target of 15 trillion yen in spending. This economic boom, however, has strained public services and infrastructure in popular areas. Kyoto's revised accommodation tax, effective March 1, 2026, introduces a five-tier system. While the tax on rooms under 20,000 yen sees a modest increase, the rate for rooms priced at 100,000 yen or more will be 10,000 yen per person per night—a tenfold increase from the previous maximum. Municipal officials project this will more than double the city's annual lodging tax revenue to approximately 13.2 billion yen by fiscal 2026. The dual-pricing model is not limited to government-run sites. A new nature-themed park in Okinawa, Junglia, and some ski resorts in Hokkaido are also implementing tiered pricing for international visitors. A survey found that over 60% of Japanese residents are in favor of such differential pricing systems. Other local governments are following suit. The city of Himeji has more than doubled the entrance fee to its historic castle for non-residents, and is also considering a higher bus fare for tourists. As of April 2025, 13 municipalities in Japan had adopted lodging taxes, with nearly 50 more exploring similar measures. In response to these changes, the Japan Association of Travel Agents (JATA) has identified overtourism as an "urgent priority." The association views the current challenges as an opportunity for the industry to shift its focus from price-based competition to creating and delivering higher-value travel experiences. The government's strategy extends beyond taxation. The Japan Tourism Agency plans to expand the number of areas with overtourism countermeasures from 47 to 100. Additionally, in the 2024 supplementary budget, 15.82 billion yen was allocated for "Emergency Measures for Preventing and Mitigating Overtourism." Efforts are also underway to divert travelers from the most congested areas. The Japan Tourism Agency has designated 20 "model tourism destinations" to test strategies for dispersing visitors to lesser-known regions. This initiative is part of a broader push for more sustainable tourism that can benefit a wider range of local economies. These measures are part of a larger regulatory overhaul. Starting November 1, 2026, tourists will no longer receive immediate in-store tax exemptions, instead claiming refunds at airports upon departure. Furthermore, by 2028, visitors from 71 currently visa-exempt nations will need to obtain an electronic travel authorization before their trip.
