The burden of traveling to Tokyo, which had benefited from the weak yen, is expected to grow further. Tokyo, the Japanese capital and one of the destinations Koreans visit most, has pulled out a plan to raise its lodging tax.
According to local outlets including the Yomiuri Shimbun on the 26th, the Tokyo metropolitan government is pushing to change the current flat lodging tax to a proportional system charging 3% of the room rate.
Until now, if the nightly rate was at least 10,000 yen (about 94,000 won) and less than 15,000 yen, guests paid 100 yen; if it was 15,000 yen or more, they paid 200 yen. Under 10,000 yen was entirely tax-exempt. The calculation was simple and the burden was light.
But if the system changes, staying at a business hotel charging 15,000 yen (about 141,000 won) per night would mean paying 450 yen (about 4,200 won) in tax instead of the current 200 yen. The tax would soar 2.25 times, or 125%. For a 10,000-yen room, it would jump threefold from 100 yen to 300 yen.
The Tokyo metropolitan government plans to finalize the plan by revising the local government ordinance as early as March next year. As the weak yen draws tourists from around the world, Tokyo's burden to maintain tourism infrastructure—such as trash disposal, signboard maintenance, and congestion relief—has grown. Meanwhile, lodging tax revenue tied to a flat rate has stayed the same no matter how many tourists came.
Tokyo data show that the tourism-related budget for fiscal 2025 (April 2025 to March 2026) reaches 30.6 billion yen (about 287.7 billion won). By contrast, lodging tax revenue under the current standard is expected to come to 6.9 billion yen (about 64.9 billion won). Outflows exceed inflows by more than four times. To fill the deficit, it is hard to find an answer other than raising taxes.
According to the Japan National Tourism Organization (JNTO), 35.54 million foreigners visited Japan from January to October this year, up 17.7% from the same period last year. A yearly total surpassing 40 million visitors looks certain. The more tourists there are, the greater the infrastructure burden on local governments. In the end, the beneficiary-pays principle—"charging the expense to people who came to have fun"—is set to be strengthened.
The Yomiuri Shimbun analyzed, "If the lodging tax is made proportional, tax revenue will naturally increase in line with inflation and hotel rate hikes," adding, "In particular, it has the advantage of effectively taxing the expensive room rates of foreign luxury hotels."