NAHA - Okinawa Prefecture announced during a meeting with the tourism industry on May 27th that it is aiming for its annual tourism revenue to exceed 1 trillion yen for the first time in fiscal 2025, and plans to introduce a lodging tax during fiscal 2026.
The meeting, held behind closed doors except for the opening remarks, brought together representatives from six organizations in the travel and accommodation sectors.
During the session, the prefecture presented its goals of reaching 1.006 trillion yen in tourism revenue and attracting 10.4 million visitors, surpassing the previous record of 10.18 million in fiscal 2018.
Regarding the proposed lodging tax, some attendees voiced support for designating it as a “purpose tax” dedicated to tourism development. Others stressed the need for close coordination with municipalities also planning to adopt the tax, pushing for its swift implementation. Governor Tamaki reportedly responded that the prefecture would move forward with introducing the tax within fiscal 2026.
The lodging tax in Japan is a local levy imposed by municipal or prefectural governments on overnight stays at hotels, ryokan, guesthouses, and other accommodation facilities. Originally introduced by Tokyo in October 2002, it was the first of its kind in the country and remains one of the most recognized. Tokyo’s system charges 100 yen per person per night for accommodations priced between 10,000 and 14,999 yen, and 200 yen for rates of 15,000 yen or more, while stays under 10,000 yen are exempt. The tax is collected by the accommodation providers at the time of check-in or check-out and is added on top of the room charge. Following Tokyo’s lead, several other regions implemented their own lodging taxes tailored to local tourism demands. Osaka Prefecture adopted a similar structure in 2017, while Kyoto City introduced a flat-rate system in October 2018, charging between 200 and 1,000 yen depending on the room rate and type of lodging, regardless of location within the city.
The purpose of the lodging tax is to support the development and maintenance of tourism infrastructure, improve services for visitors, and manage the impact of growing tourist numbers. Revenue generated from the tax is used for various initiatives such as multilingual signage, preservation of cultural heritage sites, crowd control measures, and general promotion of tourism. In heavily visited areas like Kyoto and Osaka, the tax has helped address the burden of over-tourism, especially in historic districts and popular sightseeing spots.
The introduction of new lodging taxes continues to be a topic of discussion across Japan, particularly in areas experiencing a surge in domestic and international tourism. Okinawa Prefecture, for example, has recently proposed the implementation of a lodging tax by fiscal 2026 as it aims to increase tourism revenue beyond 1 trillion yen. Local governments often weigh factors such as public sentiment, alignment with neighboring municipalities, and potential effects on hotel bookings before implementing such a tax. Although the amount imposed is relatively modest, the lodging tax represents a growing trend among Japanese regions to create sustainable tourism models while ensuring that the benefits of the tourism boom are reinvested into local communities.
Source: Okinawa News OTV
