Kyoto’s plan to raise its accommodation tax in a bid to increase tax revenue from 5.2 billion yen (US$34.7 million) in 2023 to 12.6 billion yen annually is likely to support tourism in the city while not deterring tourists, opine travel trade.

Under the proposal, which would be effective from March 1, 2026 if approved, any stay costing more than 6,000 yen per night would incur more tax, starting at a tax of 400 yen for accommodation costing 6,000 yen to 19,999 yen per night, increasing to 10,000 yen for rooms priced at 100,000 yen and over per night. Accommodation priced under 6,000 yen per night would remain at the current tax rate of 200 yen.

Kyoto’s travel and tourism players do not expect higher room taxes to dent inbound demand

The fees would be used to support conservation of traditional buildings, better infrastructure including public transport and tourism marketing – all making Kyoto more sustainable as a travel destination, according to city officials.

Travellers are likely to see the tax as a necessity rather than a deterrent to visiting Kyoto, according to travel trade players, and demand for the city is expected to remain high.

“Our portfolio of brands continues to see strong interest from travellers keen to experience Japan’s rich cultural heritage and unique attractions,” said Ching Yee, Wong, vice president, communications of Marriott International, Asia Pacific excluding China.

“For travellers who dreamt of staying in Kyoto, the accommodation tax is minimal, even for luxury accommodation like ours. And by helping improve local amenities and attractions, visitors in the future can have more enjoyable stays,” said Shizuka Takahashi, okami (innkeeper) at high-end ryokan Momoyuya in Kyoto’s popular Higashiyama district.

A spokesperson of mid-range property Hotel Light agrees, saying that the new tax scheme is unlikely to “bring us any dip in demand as Kyoto will remain a priority destination for both international and domestic visitors”.

AloJapan.com