Japan is experiencing a real tourism boom. In 2024, the country was visited by approximately 36.87 million international tourists — an all-time high since records began.
In 2025, the number of visitors could exceed 40 million. Tourist spending also reached a record high: 8.1 trillion yen ($54 billion), up 53% from the previous year. These figures are encouraging for economists, but are increasingly worrying residents of popular destinations like Kyoto, Fuji, Osaka, and Tokyo, where tourists literally throng the streets.
The Problem of “Overtourism”: When There Are Too Many Guests
The growing number of travelers has negative consequences:
- Congestion of transportation and infrastructure,
- Rising housing prices,
- Pollution,
- Loss of the cities’ cultural authenticity.
Residents of Kyoto and Kamakura are increasingly complaining about tourists who disrupt their daily lives. The situation has become so acute that Japanese authorities have begun considering financial measures to regulate the influx: primarily, the introduction of a tourist tax.
New Tourist Tax: How It Works
Starting in the fall of 2025, an accommodation tax will be introduced in various prefectures across Japan.
The Tax Rate Varies:
¥100 to ¥500 (0.60 to €3) per night in most regions,
Up to ¥1,000 (~€5.70) in Kyoto, and up to ¥10,000 (~€56.80) for luxury hotels.
Additional Measures in the Pipeline:
A increase in the current departure tax, currently ¥1,000 (~$7), is also being discussed.
The revenue from these taxes is planned to be used for:
- Improving tourism infrastructure,
- Protecting cultural monuments,
- Environmental initiatives,
- Supporting local communities.
Will the Tax Curb Tourist Flow?
Experts believe the new levy won’t lead to a significant decline in tourist numbers. It’s goal is not to restrict tourism, but to make it sustainable.
If the tax is moderate, most travelers will simply accept it as part of their expenses. However, in heavily congested areas — for example, Kyoto — it could act as a deterrent and encourage a shift in traffic to less-visited regions.
Yet experts emphasise that without comprehensive measures, regulating routes, supporting local guides, and developing alternative destinations, the tax's impact will be limited.
Japan faces a choice: maintain tourism revenue or protect it’s cultural identity. Tourism remains a vital part of the Japanese economy, but the country is now striving for sustainable development, prioritising the quality of experiences over the number of visitors.
If taxation is accompanied by smart tourism distribution policies and investments in local communities, Japan could become a model for transforming tourism from a threat into a sustainable resource.
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