Kyoto’s New Hotel Tax: A Solution or a Detour for Tourists?

Kyoto city government has unveiled plans to implement a new strategy aimed at reducing the pressure on its infrastructure due to overtourism. The proposed solution involves raising the hotel accommodation tax significantly. This move has sparked a debate among stakeholders, with some viewing it as a necessary measure to alleviate the burden on Kyoto's infrastructure, while others express concern that it might drive tourists to neighboring cities like Osaka.

The plan comes in response to the increasing number of visitors that overcrowd Kyoto, especially during peak tourist seasons. While some residents and officials believe that the higher tax will effectively manage the influx of tourists, there are warnings from industry experts about unintended consequences. Masaru Takayama, president of Kyoto-based Spirit of Japan Travel, has voiced concerns regarding the potential impact on tourism patterns.

“Yes, overtourism is a problem in many parts of Kyoto and at particular times of the year, but I am sure that foreign tourists will very quickly realise they can stay in a neighbouring city or town and just visit Kyoto for the day.” – Masaru Takayama

Takayama argues that instead of reducing the number of visitors, the increased tax may lead tourists to seek accommodations outside Kyoto, particularly in nearby cities such as Osaka. This could result in a scenario where tourists make day trips to Kyoto, thus not alleviating the burden on local infrastructure as intended. He further points out that this shift might negatively impact hotel operators in Kyoto.

“That will not be good for hotel operators and will not effectively reduce the number of tourists [in Kyoto],” – Masaru Takayama

In addition to foreign tourists, the proposed tax hike is likely to affect domestic travelers as well. Takayama emphasizes that the plan may inadvertently discourage local visitors due to relatively higher costs, despite Japan being a cost-effective destination for international tourists due to the weak yen.

“The plan is inevitably going to affect domestic tourists as well,” – Masaru Takayama

While some supporters of the tax increase remain optimistic about its effectiveness in easing infrastructure strain, critics argue that the plan has not fully accounted for all potential drawbacks. The decision presents a classic case of balancing economic interests with cultural preservation and sustainability.

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