Japan's Okinawa is set to impose a 2 percent accommodation tax aimed at bolstering local tourism initiatives.
This came after the prefectural assembly passed the relevant ordinance on Thursday (Sep 18). The tax is set to take effect in fiscal year 2026, commencing in April, marking it as the first accommodation tax established at the prefectural level.
The tax, applicable to hotel and inn stays, will be capped at a maximum of 2,000 yen per night. Notably, participants engaged in school trips and extracurricular activities will be exempt from the tax.
The projected revenue is estimated at approximately 7.8 billion yen annually, and the funds are anticipated to support the preservation of Okinawa's scenic landscapes, ensure an adequate workforce for the tourism sector, and improve safety measures for marine recreation.
The revenue generated will be evenly distributed between the prefectural government and local municipalities, except for five municipalities that plan to implement their own accommodation taxes.
The accommodation tax is fueled by heightened local expectations for an influx of tourists following the recent opening of the Junglia Okinawa theme park in July, according to local media.
