Overtourism: Japan Plans to Increase Tourist Tax

Light House Denver – Overtourism has become a significant issue facing Japan, prompting the country to consider raising the tax on foreign tourists. Currently, Japan imposes a tax of 1,000 yen (approximately IDR 110,000) per person on foreign visitors. This policy, known as the “departure tax,” requires tourists to pay the tax when leaving Japan.

Purpose of the Policy and Tax Increase Plans

The plan to increase the tourist tax has been discussed by the Japanese government and the ruling political parties. The primary goal of this policy is to expand the use of tax revenue, especially to address the growing problem of overtourism in several popular destinations across Japan. According to The Straits Times, one of the main objectives of the tax hike is to tackle the negative impacts caused by the high number of tourists, which can disrupt the sustainability of tourism.

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Members of the Liberal Democratic Party’s subcommittee are collecting input regarding the size of the tax increase and how the revenue will be used. Several proposals have been put forward, including increasing the tax to 3,000 yen (approximately IDR 330,000) or even 5,000 yen (around IDR 553,000) per person.

Utilizing Tax Revenue for Tourism Development

Currently, the tax revenue is mainly used for international tourism promotion, such as inviting foreign visitors and developing resort facilities. With this new policy, the Japanese government hopes to allocate the revenue towards expanding transportation infrastructure. This will also help improve airports to counter the negative effects of overtourism.

Since its introduction in January 2019, the tax has been included in the cost of airline and cruise ship tickets departing from Japan. Not only is this tax imposed on foreign tourists, but it also applies to Japanese citizens leaving the country.

Increase in Tax Revenue and Tourism Growth Projections

Japan’s tourism tax revenue tripled in the fiscal year 2023, reaching 39.9 billion yen. By the fiscal year 2025, it is expected to rise to 49 billion yen. According to the Japan National Tourism Organization (JNTO), the number of foreign tourists visiting Japan in 2024 reached 36.87 million. In contrast, 13.01 million Japanese citizens traveled abroad during the same period.

The number of foreign tourists is expected to continue increasing every year. To accommodate this growth, the Japanese government has set a target of attracting 60 million foreign visitors by 2030. The government hopes that the increased tax will help manage this growth. With this tax increase, tourism can continue to grow in a more sustainable way, without overburdening the environment and local communities.

With this policy, Japan aims to strike a balance between advancing the tourism sector and maintaining environmental sustainability. Additionally, it seeks to protect the well-being of local communities affected by overtourism.

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