Photo/Illutration Shirogane Blue Pond is a popular tourist attraction in Biei, a town in central Hokkaido. (Asahi Shimbun file photo)

SAPPORO—The city government here has proposed a tax on hotel users from April 2026 to fund tourism-related measures.

The per-night levy will help the city to cope with overtourism and partially offset a decline in revenue linked to Sapporo’s shrinking population.

The Hokkaido government is preparing to make a similar move, affecting all hotels on the island.

Under Sapporo’s plan, hotel operators in the city will add 200 yen ($1.25) to room bills of less than 50,000 yen per night and 500 yen to pricier rooms.

The two-tier tax is aimed at making it acceptable to hotel guests while minimizing the administrative burden on operators. No hotels will be tax-free, but bookings for school trips will avoid the levy.

The plan was presented to the city assembly in June.

The municipal government intends to submit the proposed ordinance to the city assembly by year-end after inviting feedback from the public.

Sapporo officials project that the new tax would bring in 2.75 billion yen annually.

They say the city would use this sum to improve access to public facilities, provide information in multiple languages, distribute cashless payments more widely and pay for measures to deal with overtourism.

Hotel operators will be offered a partial refund for their costs when collecting the tax.

Meanwhile, the Hokkaido government announced in early July that it will impose an accommodation tax in April 2026, or possibly later.

The Hokkaido tax will be 100 yen on room rates of less than 20,000 yen per night, 200 yen for rooms costing 20,000 yen to less than 50,000 yen and 500 yen for rooms above that.

The new tax is forecast to generate about 4.5 billion yen in annual revenue for the Hokkaido government.

Double taxation would apply in Sapporo. Hotel-users there would pay at least 300 yen, under the would-be ordinances by the city and Hokkaido government.

Some experts have voiced concerns about how the revenue will be spent. They warn that the city and the Hokkaido government might end up using the money on programs that overlap.

But the municipal government is trying to dispel the concerns.

“The Sapporo government has coordinated with the Hokkaido government on many points in the planned tax, reaching a consensus on taxation targets and the criteria for tax exemption,” a city official said.

A growing number of local governments across the country have been mulling the idea of an accommodation tax to fund tourism measures.

Hokkaido is a prime destination for many visitors. It began discussing a tax even before the COVID-19 pandemic and tourism freeze, which began in 2020. Officials resumed talks in August 2023 after the pandemic came under control.

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