The Kyoto hotel tax is about to undergo a dramatic transformation, as the city plans to increase the current maximum rate by ten times in an effort to manage the growing pressure from mass tourism.
Starting March 1, 2026, the iconic Japanese city—famous for its temples, cherry blossoms, and centuries-old traditions—will implement a new, multi-tiered hotel tax structure that replaces the existing 1,000 yen (approximately €6.15) nightly cap with a significantly higher limit of 10,000 yen (around €61.52). This bold move reflects Kyoto’s struggle to balance its popularity with the needs of local residents and the integrity of its cultural heritage.
Kyoto’s existing hotel tax, introduced in 2018, currently charges between 200 yen and 1,000 yen per night depending on the cost of accommodation. Under the current system, tourists pay 200 yen for stays under 20,000 yen (€123) and a maximum of 1,000 yen for stays costing 50,000 yen (€307.65) or more per person, per night.
But under the new system, the city will introduce five revised pricing tiers. The lowest fee of 200 yen will remain, now applying only to stays costing up to 6,000 yen (€36.78) per night. From there, the tax rises incrementally, peaking at 10,000 yen for stays costing over 100,000 yen (€615.35) per night. This change means that luxury travelers staying at high-end accommodations will feel the increase the most, potentially adding hundreds of euros to multi-day visits.
Kyoto officials expect this revised structure to significantly boost the city’s tourism tax revenue—from 5.2 billion yen (€32 million) in 2023 to an estimated 12.6 billion yen (€77.55 million) annually once the changes take effect.
According to figures from the Japan National Tourism Organization (JNTO), the added funds will be used to support anti-tourism initiatives, improve infrastructure, and sustain the local environment, which has been heavily impacted by the city’s overwhelming visitor numbers.
Kyoto, one of Japan’s most cherished cultural destinations, is the country’s third most visited prefecture after Tokyo and Osaka. Its allure to both international and domestic travelers has grown even stronger in recent years, contributing to Japan’s record-breaking 36.87 million foreign arrivals in 2024. However, this popularity has also led to issues like overcrowded streets, stressed public transportation, and strained municipal services.
By introducing what will become the highest hotel tax among the 11 Japanese municipalities currently implementing similar tourism measures, Kyoto is positioning itself at the forefront of Japan’s broader effort to control overtourism. The revised tax system is not only designed to raise funds but also to subtly discourage excessive short-term luxury stays that may contribute disproportionately to local congestion and noise.
While some travelers may balk at the thought of paying more, others may welcome the initiative as a necessary step toward preserving the city’s charm and livability. The hope is that the increased revenue can help fund sustainable tourism programs, protect historic sites from wear and tear, and improve the visitor experience through better crowd management and urban upkeep.
The timing of the tax increase—still nearly a year away—gives hoteliers, tour operators, and travelers time to adjust. It also opens the door for potential discussions on how tourism should evolve in a post-pandemic world where demand is returning stronger than ever, especially in culturally rich destinations like Kyoto.
The city’s action reflects a growing global trend: popular destinations using economic tools to manage tourism levels. Whether or not other Japanese cities follow Kyoto’s lead remains to be seen, but all eyes will be on how this ambitious change affects both the local economy and visitor behavior when it comes into effect in 2026.
Would this tax hike make you reconsider a future stay in Kyoto—or make you appreciate the steps being taken to keep the city special?
