Japan’s historic capital of Kyoto is set to introduce the country’s highest-ever hotel tax, charging guests up to 10,000 yen (US$68) per person, per night at luxury hotels starting March 2026. The measure, now fully approved by Japan’s Ministry of Internal Affairs and Communications, is designed to combat the city’s worsening overtourism crisis.

The new tiered tax system will range from 200 yen for budget accommodation to 10,000 yen for rooms priced above 100,000 yen per night, far surpassing the current nationwide maximum of 1,000 yen. City officials say the move will ensure that “tourists also bear the cost of countermeasures against overtourism,” according to the Asahi Shimbun.

Kyoto’s mayor, Koji Matsui, said the additional revenue will help “build a sustainable tourism city that benefits both visitors and residents.” The funds — projected to nearly double annual revenues from 5.9 billion yen to 12.6 billion yen (US$40 million to US$85 million) — will be used for initiatives including multilingual visitor support, etiquette education campaigns, and an express bus linking Kyoto Station with the popular Higashiyama temple district.

The decision follows years of mounting frustration among locals. Kyoto’s streets — particularly in Gion, where geisha and apprentice maiko are frequently harassed by tourists — have seen increasing crowd control measures. Certain private lanes in Gion now carry fines of up to 10,000 yen for trespassing, with signs reminding visitors that “Kyoto is not a theme park.”

While critics warn that higher taxes could push visitors toward nearby Osaka, officials maintain that the scaled approach is fair, with the lowest tax unchanged for budget travelers.

Japan’s tourism boom shows no signs of slowing. The country welcomed a record 21.5 million international visitors in the first half of 2025, up 7.6% year-on-year, according to the Japan National Tourism Organization (JNTO). Kyoto alone drew 56 million visitors in 2024, approaching pre-pandemic highs.