Kyoto to introduce Japan's highest-ever hotel tax from March 2026

Kyoto, Japan’s historic capital, will implement the country’s highest hotel tax starting March 2026, with luxury hotels charging up to 10,000 yen (US$68) per night, city officials confirmed, as reported by South China Morning Post. The Ministry of Internal Affairs and Communications granted final approval on Friday after the city assembly endorsed the plan earlier this year.

The tax, introduced to curb overtourism, scales from 200 yen for budget accommodation to 10,000 yen for stays above 100,000 yen per night, far exceeding the current maximum of 1,000 yen. City officials said the measure ensures tourists “bear the cost of countermeasures against overtourism,” according to the Asahi Shimbun.

Revenue to fund tourism management
As per the South China Morning Post report, Mayor Koji Matsui said the additional revenue will help Kyoto build a sustainable tourism model that benefits both visitors and residents. Funds are earmarked for improved infrastructure, multilingual information services, etiquette campaigns, and a new express bus connecting Kyoto Station to the temple-rich Higashiyama district. Officials project the tax could nearly double annual revenue, from 5.91 billion yen (US$40 million) to about 12.6 billion yen.

Tour operators, however, expect the impact on luxury travellers to be limited. Avi Lugasi, Israeli owner of Kyoto-based tour company Windows to Japan, said, “Anyone willing to pay that sort of money for a hotel is not likely to change their mind because of an extra 10,000 yen.”

Schools and residents feel the pressure
The city’s tourism boom has created challenges for residents and domestic visitors. A 2024 study by the Kyoto city government recorded 56.06 million visitors, nearing the city’s all-time high. In response to congestion, tourists are now barred from certain private streets in Gion, where geisha and apprentice maiko work, with fines of up to 10,000 yen for violations.

Overtourism is also affecting school trips. Teachers report overcrowded buses, crowded temples, and sharply rising hotel and restaurant costs. Michiyo Nakade from the Japan School Trip Association said, “Some places are so busy that the students cannot see everything, so they are very disappointed. It is very unfortunate because most Japanese parents went to Kyoto for their school trips when they were younger and they want their children to go to the same places.”

Kyoto’s new hotel tax is the latest effort to manage tourist numbers while maintaining the city’s cultural heritage and quality of life for residents. With Japan’s tourism continuing to grow, 21.5 million international visitors in the first half of 2025, up 7.6% from last year, the city’s measures signal a shift toward more sustainable travel policies.