Tokyo to introduce 3pc accommodation tax from April 2027

The Tokyo Metropolitan Government will introduce a 3 percent accommodation tax on room rates starting from April next year, replacing its long-standing flat-fee system to help fund measures aimed at addressing overtourism. 

Metropolitan officials said that the revision is a response to the sharp increase in international tourists, which has led to higher administrative burdens related to littering, strains on public transportation, and localized overcrowding.

Under the current system, which has been in place for more than two decades, visitors are charged a fixed rate of either 100 yen (around HK$4.8) or 200 yen (HK$9.6) per person per night, depending on their room cost. 

The new tax will apply to a wider range of lodgings, including hotels, ryokans, simple lodgings and private short-term rentals. 

However, the levy will be waived for rooms priced below 13,000 yen per night to protect budget travelers and backpackers from higher costs. The tax will be calculated strictly based on the room rate, excluding meals and other incidental charges. 

As a result, a 20,000-yen nightly stay will see its accommodation tax increase from 200 yen to 600 yen (around HK$29). For higher-end accommodations priced at 50,000 yen, the tax will rise to 1,500 yen (HK$72).

Tokyo authorities estimate that roughly 30 percent of homestay properties will meet the new taxable threshold.

The restructured tax is projected to generate approximately 19 billion yen (around HK$918 million) annually. The revenue will be used to improve tourism infrastructure, address community disruptions caused by visitor congestion, and implement crowd-dispersal measures to strike a sustainable balance between tourism growth and local quality of life.

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