🎧 Listen to This Article
Japan’s government is exploring the potential increase of the ¥1,000 International Tourist Tax, which is currently levied as a departure tax.
This initiative aims to address the challenges posed by overtourism, a growing concern in various regions, as the number of foreign visitors continues to rise rapidly.
Recent discussions among members of a subcommittee from the ruling Liberal Democratic Party have initiated a dialogue on how significantly to raise this tax and how the additional revenue should be allocated.
Comparatively, some countries have implemented higher departure taxes, such as approximately ¥3,750 in Egypt and ¥7,000 in Australia.
Proposals for Japan suggest increasing the tax to between ¥3,000 and ¥5,000.
Presently, revenue from the tax is primarily designated for promoting international tourism, which includes efforts like attracting foreign tourists and developing resort areas.
In addressing overtourism, subcommittee members anticipate utilizing the increased tax revenue to enhance transportation infrastructure and improve airport facilities.
They plan to incorporate these ideas into the tax reform outline after discussions within the ruling party’s tax commission.
The International Tourist Tax was implemented in January 2019, added to ticket prices for flights and cruise departures from Japan.
It affects not just international visitors but also Japanese travelers.
Notably, tax revenue surged to ¥39.9 billion in fiscal 2023, marking a threefold increase from the previous year, and is projected to reach ¥49 billion by fiscal 2025.
According to the Japan Tourism Agency, Japan welcomed 36.87 million foreign visitors in 2024, while 13.01 million Japanese citizens traveled abroad.
The government has set an ambitious target of attracting 60 million visitors by 2030.
However, some airports and tourist destinations are struggling to accommodate this influx, raising concerns that overtourism may worsen if visitor numbers continue to climb.
In response, the government aims to bolster financial resources through the increased International Tourist Tax to enhance the travel environment and meet its tourism goals effectively.
For further details, clarification, contributions or any concerns regarding this article, please feel free to reach out to us at [email protected]. We value your feedback and are committed to providing accurate and timely information. Please note that all inquiries will be handled in accordance with our privacy policy
