Japan Considers Hiking Departure Tax Up to Fivefold to Tackle Overtourism Surge

Government Plans to Boost Infrastructure and Ease Tourism Strain

Japan’s government and ruling Liberal Democratic Party are exploring a significant increase in the country’s international tourist departure tax, potentially raising it from the current $6.50 per person to a range of $19.50 to $32.50. This proposed hike, aimed at addressing the growing issue of overtourism in Japan, reflects a strategic shift to manage the influx of foreign visitors while funding critical upgrades to transportation networks and airport facilities. With the number of tourists skyrocketing in recent years, the nation is grappling with overcrowded hotspots and strained infrastructure, prompting officials to rethink how tourism revenue can be leveraged for sustainable growth. The plan also includes expanding the tax’s purpose beyond its original scope of promoting tourism and developing resorts, marking a pivotal change in Japan’s approach to handling its booming visitor economy.

The idea of increasing the departure tax, first introduced in January 2019, comes as Japan experiences an unprecedented wave of international travelers. In 2023 alone, the country welcomed a record-breaking 36.87 million foreign visitors, with January 2025 setting a new monthly high of 3.78 million arrivals. This surge has significantly boosted departure tax revenue, which jumped to $260 million in the 2023 fiscal year (April 2023 to March 2024) - more than triple the previous year’s total - and is projected to reach $319 million in the 2025 fiscal year. To put the proposed increase into perspective, Japan is looking at examples like Australia, where the departure tax stands at $45.50, and Egypt, at $24.40, suggesting a potential alignment with global standards. Unlike the current system, where funds primarily support tourism marketing and resort projects, the expanded revenue would also enhance public transit systems and modernize airports, addressing long-standing complaints about congestion and outdated facilities in popular destinations like Tokyo, Osaka, and Kyoto.

Beyond the departure tax hike, Japan is considering a broader overhaul of its tourism-related taxation policies to mitigate the effects of overtourism on local communities. One key proposal involves a substantial increase in accommodation taxes, particularly in high-traffic areas. For instance, Kyoto, a cultural hub overwhelmed by visitors, is mulling a dramatic jump in its lodging tax from a range of $1.30 to $6.50 per night to as much as $65 - a potential tenfold increase. This move aims to generate funds for maintaining historic sites and improving local infrastructure while encouraging travelers to explore less-visited regions. Currently, 14 local governments impose an accommodation tax, up from nine in 2023, with 43 more municipalities weighing similar measures. Additionally, some iconic cultural landmarks and tourist attractions are exploring options like raising entry fees or introducing surcharges exclusively for foreign visitors, a strategy intended to disperse crowds and secure resources for preservation efforts. For example, discussions around Himeji Castle suggest a possible quadrupling of admission fees for international tourists, highlighting the growing trend of differential pricing.

The driving force behind these changes is Japan’s struggle with overtourism, a phenomenon where excessive visitor numbers strain resources, disrupt local life, and degrade the travel experience. Popular areas like Osaka’s Dotonbori district and Kyoto’s Arashiyama bamboo forest have become symbols of this challenge, with packed streets and overburdened public transport systems testing the patience of residents and travelers alike. The government’s response signals a departure from its earlier focus on simply attracting more tourists - a policy that fueled Japan’s post-pandemic tourism boom - toward a model that prioritizes sustainability and infrastructure resilience. By channeling increased tax revenue into tangible improvements, such as expanded rail capacity or upgraded airport terminals, officials hope to alleviate pressure on overburdened systems while maintaining Japan’s appeal as a must-visit destination.

These taxation proposals are still in the early stages, with the Liberal Democratic Party gathering feedback before finalizing plans for the year-end tax reform package. If approved, the departure tax increase and related measures could take effect as early as next year, reshaping how Japan manages its tourism industry. The shift also reflects a broader global trend, as destinations like Venice and Bali implement similar fees to cope with visitor overload. For travelers, this could mean higher costs when visiting Japan, but it also promises a more seamless and enjoyable experience, with better facilities and fewer bottlenecks. For locals, it offers hope of reclaiming a semblance of normalcy in cities long inundated by tourist crowds. As Japan balances its role as a top travel destination with the realities of overtourism, these financial strategies could set a precedent for how nations adapt to the challenges of modern tourism in an increasingly connected world.