Japan Tourism Agency announced a proposal to ensure new tourism financial resources after summarizing discussions by experts during several meetings held since September 2017.
The proposal calls for a taxation of 1,000 JPY or less on each traveler departing from Japan. All travelers will be subject to this taxation, including Japanese citizens. According to this proposal, the precise amount will be decided based on the financial resources needed to support the national tourism policies.
The proposal suggests that the tax will be introduced as soon as possible, before Tokyo Olympics and Paralympics, as soon as the system is designed. If everything goes well, the government’s tax commission will decide whether the departure tax is accepted or not by the end of 2017, allowing it to be incorporated into the Annual Tax Revision Plan for FY2018. The new departure tax may be applied as early as FY2019, with collection starting on April 1, 2019.
Japan Tourism Agency suggests three basic rules for the use of this departure tax: 1) the tax payers should be satisfied with the tax in terms of a benefit-burden relationship, 2) the tax should be used for progressive and cost-effective policies and 3) the tax should be used for challenging themes, such as local revitalization.
Based on these 3 rules, Japan Tourism Agency lists three concrete actions to be taken: 1) the development of a stress-free travel environment, 2) the easing of information acquisition related to Japan’s various tourism attractions and 3) the increase of the satisfaction regarding experiences/activities and lodging in the countryside through the development of tourism resources taking advantage of each region’s unique culture and nature.
