News On Japan

Japan approves 1,000 yen sayonara tax to fund tourism expenses

Apr 12 (Nikkei) - Japan will charge a departure tax of 1,000 yen ($9.37) per person beginning next year, with plans to use the anticipated 40 billion yen raised annually to bolster tourism.

Foreigners and Japanese alike leaving the country by air or sea will pay the tax when they buy tickets, much like they do with airport facility fees. Travelers younger than 2 are exempted from the levy, which debuts Jan. 7. The tax bill obtained Diet approval Wednesday at the plenary session of the upper house.

Airlines and travel companies will need to update their booking system to collect the tax. "We are trying to gauge how big of an update," said an official from All Nippon Airways, the flagship airline under ANA Holdings.

Hankyu Travel International, strong in package deals, plans to mark the tax as a separate item from package prices, as it does with airport facility fees.

With tourism-related spending by the government likely to mushroom, many legislators asked for specifics on how the new revenue could be used, citing the costs to secure enough workers for understaffed customs operations as well as spending to set up integrated resorts with casinos.

Source: ANNnewsCH

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