Kyoto City revealed a plan to raise accommodation tax from currently 200 to 1,000 yen a night to10,000 yen a night at most. The amended rule us supposed to be in effective after March 1 2026 if it is passed at the city council in February 2025 and the approved by Minister of International Affairs and Communications.
Kyoto City expects that the new tax rule help the city increase tav revenue from 5.2 billion yen in 2023 to about 12.6 billion yen a year. Kyoto Mayor Koji Matsui explained at a press conference, “Kyoto City is going to use revenue from accommodation tax to build sustainable tourism city, which must be good for both tourists and Kyoto citizens.”
Kyoto City has struggled with over-crowded tourists in part of areas and misbehaviors by inbound tourists since the pandemic ended.
The new rule is amended to five categories
The current accommodation taxes are divided into three categories of 200 yen a night for a accommodation price of 20,000 yen or less a night, 500 yen a night for 20,000 yen to 50,000 and 1,000 yen a night for 50,000 yen or more.
The proposed new tax rule are divided into five categories of 200 yen a night for 6,000 yen or less, 400 yen a night for 6,000 yen to 20,000 yen, 1,000 yen night for 20,000 yen to 50,000 yen, 4,000 yen a night for 50,000 to 100,000 yen and 10,000 yen a night for 100,000 yen or more.
Luxury hotels have been increasing in Kyoto City, and there are exceptionally rooms at 1 million yen or more a night. Matsui said, “When we consider fair burden for guests, we have decided 10,000 yen a night at most for a luxury guest who deserves it.”
税率（税額）の見直し方針：発表資料より
Improving conveniences for both citizens and tourists
Kyoto City has estimated that about 13 billion yen will be demanded to improve conveniences and satisfactions for both citizens and tourists, including about 6 billion yen for a city development program to ensure safer and more convenient city. “Tourists always account for 10% of the entire population in Kyoto City,” Matsui said. “We will collect accommodation tax depending on benefits of tourists.”
宿泊税の施策に係る財政需要：発表資料より
For school trip groups, the current rule will be maintained. Kyoto City will raise the subsidiary percentage to support accommodation operators when they need system improvements for cashless payment of tax or PR efforts.
