Key Facts
• 92 municipalities across 32 prefectures are considering introducing a lodging tax.
• 42 municipalities have already implemented or plan to implement the tax.
• The tax aims to address overtourism and promote tourism development.
• Both Japanese and foreign guests will be subject to the tax.
• A survey conducted in June–July 2025 received responses from 96% of municipalities (1,723).
• 35 municipalities have received approval from the Minister of Internal Affairs; 12 have implemented it.
• 23 municipalities plan to introduce the tax by 2026.
• 7 municipalities have passed ordinances and are awaiting approval.
• Challenges include clarifying tax usage (Tomakomai City) and administrative burdens for small businesses (Kochi City).
Summary
Japan is expanding its lodging tax system, with 92 municipalities across 32 prefectures considering its introduction. This tax, applicable to both domestic and international guests, aims to address overtourism and fund tourism development. A recent survey revealed that 42 municipalities have already implemented or plan to implement the tax, with 23 targeting 2026 for rollout. Challenges include ensuring transparency in tax usage and managing administrative burdens for smaller businesses. The initiative reflects Japan’s response to the surge in inbound tourism and its commitment to sustainable tourism practices.
