Kyoto’s New Hotel Tax to Take Effect in 2026

Kyoto, Japan, one of the country’s most renowned and culturally rich cities, has announced a significant change to its tourism policies. Starting in 2026, the city will implement an increased hotel tax that reaches up to 10,000 yen (S$86.90) per person, per night. The goal? To address the growing concerns of overtourism and its impact on the city’s historic charm, while generating funds for much-needed infrastructure improvements.

Also read: How to Book A Ride On Kyo-Train Garaku, Kyoto’s Top Sightseeing Train 

What’s behind the Kyoto hotel tax increase?

Kyoto has long been a major attraction for travellers, drawing millions each year with its beautiful temples, shrines, gardens, and traditional tea houses. It’s no surprise the city sees a high influx of tourists, especially after the lifting of pandemic restrictions. Kyoto is also home to numerous UNESCO World Heritage Sites, and maintaining these cultural treasures requires ongoing investment in conservation and infrastructure.

However, the surge in visitors has led to challenges such as overcrowding, pressure on local resources, and an increased risk of damage to Kyoto’s cultural heritage. With tourism continuing to grow, the city seeks to strike a balance between the economic benefits of tourism and the need to preserve its history and natural beauty.

What’s changing with Kyoto’s hotel taxes?

To address these issues, Kyoto’s government has decided to raise hotel taxes to protect historical sites and manage visitor flow more effectively.

Previously, Kyoto’s 2018 accommodation tax system included three tiers: a 200 yen (S$1.75) tax on rooms priced below 20,000 yen (S$174) a night; a 500 yen (S$4.35) tax on rooms priced between 20,000 and 49,999 yen (S$174 – S$435) per night; and a maximum 1,000 yen (S$8.70) tax on rooms priced above 50,000 yen (S$435).

The new system will introduce five tiers based on accommodation price, with those staying in rooms priced between 20,000 and 50,000 yen (S$174 – S$435) per night seeing their tax per person double to 1,000 yen (SS$8.70). The highest tax rate, now 10,000 yen (S$87), will apply to accommodations that cost 100,000 yen (S$870) or more per night. These changes are set to take effect in 2026, pending approval from the city assembly.

Other taxes in Kyoto

In addition to the new hotel tax, Kyoto has implemented several other taxes to maintain its cultural heritage and manage tourism’s impact. For instance, the city imposes a Tourist Tax on visitors to certain attractions. There’s also an Onsen Tax of 100 yen (S$0.90) per person, per day for general entry into onsens. Travellers using public transportation in the city are subject to specific transportation taxes that fund infrastructure projects such as trains and buses, helping to ease the strain on public resources.

These taxes contribute to funding initiatives like the protection of cultural sites and the upkeep of public spaces often frequented by tourists. While they help distribute the financial burden of tourism, they also highlight the importance of responsible travel practices.

A step toward sustainable travel?

Ultimately, Kyoto’s new hotel tax aims to strike a balance between preserving the city’s heritage and the economic boost that tourism brings. It reflects a growing awareness of the need for sustainable tourism globally, not just in Kyoto.

However, raising taxes alone won’t solve Kyoto’s tourism challenges. To avoid alienating visitors while still protecting its historical sites, the city will need to implement additional measures. This could include promoting off-season visits, developing lesser-known areas for tourists to explore, and encouraging eco-friendly travel options. 

Also read: 10 Hidden Gems in Kyoto, Japan You Can’t Afford to Miss

The tax hike is just one piece of the puzzle in the ongoing conversation about how cities can balance tourism with sustainability. If you’re planning a visit to Kyoto in the coming years, it’s worth keeping an eye on how these changes unfold. While it may cost a bit more to stay in a hotel, the hope is that your visit will contribute to preserving Kyoto’s beauty and cultural significance for generations to come.