Photo/Illutration The famed Kinkakuji temple in Kyoto’s Kita Ward in Kyoto Prefecture, which was ranked second on the list of Japan's most attractive prefectures (Asahi Shimbun file photo)

KYOTO—As the ancient capital grapples with overtourism, Kyoto city officials will raise the accommodation tax to a maximum of 10,000 yen ($63) per person per night, according to sources.

The change is expected to more than double the city’s accommodation tax revenue to around 12 billion yen a year. The city aims to introduce the new taxes in 2026.

Kyoto city introduced its accommodation tax in October 2018 and currently applies it to guests staying at hotels and other facilities in three tiers based on room rates.

Guests must pay 200 yen for an overnight stay costing less than 20,000 yen; 500 yen for a stay priced between 20,000 yen and 49,999 yen; and 1,000 yen for a stay costing 50,000 yen or higher.

The new tax rates will be divided into five tiers.

Guests will pay 200 yen per night for an overnight stay under 6,000 yen; 400 yen for a stay from 6,000 yen to 19,999 yen; 1,000 yen for a stay from 20,000 yen to 49,999 yen; 4,000 yen for a stay from 50,000 yen to 99,999 yen; and 10,000 yen for a stay of 100,000 yen or higher.

Kyoto, a popular destination for tourists, is dealing with problems associated with growing throngs of visitors. 

The city draws a huge number of foreign tourists, with high-end hotels continuing to open.

The city government expects to generate around 4.8 billion yen in accommodation tax revenue in its initial budget for fiscal 2024 but foresees that additional spending will be needed to tackle tourism-related issues.

According to the internal affairs ministry, 11 local governments nationwide, including Tokyo and Osaka Prefecture, have introduced accommodation taxes.

Kyoto’s 10,000 yen tax will be the highest flat-rate charge in Japan, excluding accommodation taxes that are calculated as a percentage of the room price.

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