Japan's ancient capital, Kyoto, is taking drastic measures to combat overtourism by introducing a new 'tourist tax' that could cost visitors upwards of $65 per night. Starting in March 2026, the city will implement the highest accommodation tax in Japan, affecting hotels, inns, and guesthouses. Under this new system, tourists at high-end hotels might pay a staggering ¥10,000 (approximately $65) per person per night in tourism taxes, a tenfold increase from current rates. Budget travelers will also face significant hikes, from about ¥200 to ¥400 (around $1.30 to $2.60), while mid-range rooms will see a jump from ¥500 to ¥1,000 (approximately $3.30 to $6.50) per person. The city's decision comes as a response to the strain on local infrastructure and the overwhelming influx of tourists, with officials aiming to double Kyoto's tourism tax revenue. The extra funds will be utilized for crowd management, preserving cultural sites, and alleviating the pressure on local infrastructure. However, this move has sparked controversy, as critics argue that it may not be sufficient to address the underlying issues. Japan welcomed over 35 million foreign tourists in 2024, and the government aims to reach 60 million by 2030. As the country's popularity soars, cities like Kyoto are grappling with the challenge of balancing economic opportunities with the preservation of their unique charm and livability. The new tax is a potential precedent for other tourist-heavy regions facing similar struggles.
