How Kyoto’s New Accommodation Tax and Regional Tourism Initiatives Are Shaping Sustainable Travel
Japan is taking bold steps to manage its booming tourism industry. With Kyoto introducing a significant accommodation tax increase and the government promoting lesser-known regions like Hokkaido, Okinawa, and the Japanese Alps, these efforts aim to balance growth with sustainability. Here’s what you need to know about these changes and how they’ll impact your next trip to Japan.
Kyoto’s Accommodation Tax Hike: What It Means for Tourists and the City
Starting March 2026, Kyoto will raise its accommodation tax, with a particular focus on high-end stays. If you’re booking a luxury hotel or ryokan costing 100,000 yen or more per night, expect to pay a maximum tax of 10,000 yen per person per night—making it the highest flat-rate accommodation tax in Japan.
Current vs. New Tax Rates
Here’s a quick comparison of the current and upcoming tax rates based on accommodation costs:
|
Accommodation Cost
|
Current Tax Rate
|
New Tax Rate (From March 2026)
|
|---|---|---|
|
Below 6,000 yen
|
–
|
200 yen
|
|
6,000–19,999 yen
|
–
|
400 yen
|
|
Below 20,000 yen
|
200 yen
|
–
|
|
20,000–49,999 yen
|
500 yen
|
1,000 yen
|
|
50,000–99,999 yen
|
1,000 yen
|
4,000 yen
|
|
100,000 yen and above
|
1,000 yen
|
10,000 yen
|
Why the Increase?
The revenue—projected to jump from 48 billion yen in 2024 to 120 billion yen annually—will fund solutions to overtourism. This includes:
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Improving public transportation to reduce congestion.
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Restoring cultural heritage sites strained by heavy visitor traffic.
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Managing issues like overcrowding and tourist etiquette, despite high satisfaction rates (97.2% of foreign visitors and 94.6% of Japanese visitors were “fairly satisfied” or better in 2024).
Kyoto has been taxing overnight stays since October 2018, but this update reflects the city’s growing need to balance tourism’s economic benefits with the well-being of residents and preservation of its iconic sites.
Japan’s Strategy to Spread Tourism: Hokkaido, Okinawa, and the Japanese Alps
To ease the pressure on major hubs like Tokyo, Osaka, and Kyoto, the Japanese government is encouraging travelers to explore regional gems. Here’s how Hokkaido, Okinawa, and the Japanese Alps are stepping into the spotlight:
Hokkaido: Tackling Overtourism with Tech
As one of Japan’s top five tourist destinations, Hokkaido welcomed 73% of overnight visitors among Tokyo, Osaka, Kyoto, and Fukuoka. Popular spots like Hakodate Mountain often face overcrowding. To address this:
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A real-time congestion monitoring system launched in January 2025, with digital signage at Hakodate Station displaying crowd levels.
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Tourists can scan QR codes to plan trips around less busy times.
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The government allocated 158.2 billion yen in the 2024 supplementary budget to support such overtourism measures.
Okinawa: AI-Powered Trip Planning
Okinawa’s “Okimeguri” app uses AI to predict crowd levels at tourist spots based on past data, weather, and events. While not real-time, it helps visitors:
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Choose less crowded destinations.
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Plan trips for a smoother, more enjoyable experience.
This initiative ensures Okinawa’s beaches and cultural sites remain accessible without overwhelming local infrastructure.
Japanese Alps: Sustainable Tourism in Nature
The Japanese Alps, part of the Chubu Sangaku National Park, are being promoted through the “National Parks Enjoyment Project.” Since the 2020 Southern Area Promotion Program began:
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Efforts focus on increasing visitor numbers while extending stays to boost local economies.
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The goal is high-quality, sustainable tourism that preserves the region’s stunning natural beauty.
This aligns with Japan’s broader push to distribute tourists to rural areas, reducing urban strain.
Japan’s Push for Sustainable Tourism: A National Effort
Japan’s tourism is soaring, with 36.87 million foreign visitors in 2024 (a 47.1% increase from 2023) and spending reaching 5.3 trillion yen (up 10.2% from 2019). The government aims to welcome 60 million foreign tourists annually by 2030. To achieve this sustainably:
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Projects like Kumamoto Prefecture’s “Tourist Dispersion Plan” (backed by an 80 million yen subsidy in 2025) encourage visits to rural areas.
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Regional promotion efforts support local economies while preserving Japan’s cultural and natural treasures.
By spreading tourism beyond major cities, Japan hopes to reduce overcrowding and ensure a better experience for travelers and residents alike.
What This Means for Travelers
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Kyoto Visitors: Budget for the new tax if you’re eyeing luxury stays, and expect improved infrastructure to ease your trip.
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Regional Explorers: Discover Hokkaido’s snowy peaks, Okinawa’s turquoise waters, or the Japanese Alps’ hiking trails—less crowded alternatives to urban hotspots.
Japan’s tourism evolution is all about sustainability. Whether you’re temple-hopping in Kyoto or venturing off the beaten path, these changes promise a richer, more balanced travel experience.
