Regarding the “accommodation tax” imposed on hotel and inn guests, there are plans to revise the current flat rate of 100-200 yen per person per night to a uniform 3% tax on accommodation fees. The new policy will also include vacation rentals as taxable targets. After necessary ordinance revisions and national approval, the changes are aimed for implementation during fiscal year 2027.

Against the backdrop of increasing foreign tourists, movements to raise accommodation taxes are spreading across various regions. The revision aims to increase tax revenue and use it for tourism promotion, including improvements to accommodation facilities and support for municipal waste management measures.

The accommodation tax was first introduced nationally in 2002. The tax has been levied at 100 yen for accommodation fees (per person per night) of “10,000 yen or more but less than 15,000 yen” and 200 yen for “15,000 yen or more,” but this will change to a 3% flat rate. As accommodation costs soar, the tax exemption threshold will be raised from “less than 10,000 yen” to “less than 13,000 yen” to accommodate school trips and similar activities.

The accommodation tax revenue for fiscal year 2025 is expected to reach 6.9 billion yen, 2.5 times the fiscal year 2019 amount due to the rapid increase in foreign tourists. With this revision, revenue is projected to increase to 19 billion yen.

Accommodation taxes are being introduced and revised nationwide. Starting March 2026, the maximum tax amount will be raised from 1,000 yen to 10,000 yen (for stays costing 100,000 yen or more per night), and Niseko Town in Hokkaido has indicated plans to change from a flat-rate system to a percentage-based system (3%).

Niseko Town

Niseko Town is a municipality in Hokkaido, Japan, renowned internationally for its exceptional powder snow and world-class ski resorts. Historically an agricultural area, its transformation into a premier winter sports destination began in the early 20th century with the opening of its first ski area and accelerated significantly after hosting events for the 1972 Sapporo Winter Olympics. Today, it is a major hub for international tourism, attracting visitors from around the globe.

Hokkaido

Hokkaido is Japan’s northernmost main island, historically inhabited by the indigenous Ainu people before significant Japanese settlement began in the late 19th century during the Meiji era. It is renowned for its stunning natural landscapes, including national parks, volcanic mountains, and renowned ski resorts, which attract visitors for both summer and winter outdoor activities. The island’s distinct culture, cuisine, and cooler climate set it apart from the rest of Japan.