Get Ready, Japan Tourists — Here Comes the “Tourist Tax”

As tourists pour back into Japan, more and more municipalities are taxing their stay. Here’s what it means for your trip.

By Jay Allen

Domestic and inbound tourism is back to full swing in Japan. And as costs rise and revenues dwindle, Japan’s municipalities are looking to get in on the action. Here’s why lodging taxes are the new black in Japan — and what it means for your next trip.

Lodging taxes spread

Domestic tourism is back in season in Japan. And since the country lifted travel restrictions in October 2022, tourists have slowly trickled back into the country. With the recent hanami season, they seem to have come back in a big way. Tourists from some countries, such as the United States, even exceeded pre-pandemic levels in March 2023.

But all isn’t well in the land of the rising sun. A combination of world events and pandemic-induced economic woes have left the country struggling with rising prices. And Japan’s dwindling population means the country has less tax revenue to fund…