Japan is considering an exit tax

Transitioning from cherry blossoms to autumn colors, despite the magnetic attraction of Tokyo, Japan faces a delicate balance: keeping its heart amid international fame. A key strategy to combat “overtourism” is emerging: a proposed increase in the exit tax, potentially tripling it from the current ¥1,000 (about €6) to ¥3,000 (more than €15) in 2026. The initiative, which has been debated by figures within the Liberal Democratic Party, reflects the success of the government.

Since its introduction in 2019, the “International Tourism Tax” has been added to airport and cruise tickets for outbound passengers, including those with a layover of more than 24 hours. It’s a smart way to fund Japan’s fascinating infrastructure, from bullet trains to tranquil gardens. However, given the significant post-pandemic increase in visitors, officials believe it is time for a review.

A surge that compresses the seals

Japan’s tourism revival is undeniable. After the global health crisis disrupted the tour, the nation witnessed an impressive comeback: Almost 36.9 million international visits in 2024, more than pre-Covid numbers. Moving into 2025, the trend continues, with around 21.5 million foreign arrivals in the first half of the year alone, suggesting a potential increase over last year’s total. Notably, September saw more than 3.26 million visitors, marking an increase of about 13.7% over 2024, driven by a weaker yen, popular social media content, and a desire for authentic, immersive experiences.

This flow presents challenges. Famous sites, such as Kyoto’s Fushimi Inari Shrine and Tokyo’s Shibuya Crossing, face daily congestion, while locations in Hokkaido and Okinawa experience environmental stress. Transportation systems are strained, cultural heritage is in decline, and locals worry about “tourist fatigue,” especially in areas like Osaka. Government policy? Use of financial measures. As a representative of the Liberal Democratic Party told NHK, the tripling of the exit tax of $3,000 per person will generate critical funds for sustainable management, supporting everything from crowd control technology to heritage protection.

Kyoto sticker shock: A sign of things to come

Japan’s focus on fees is not limited to airport departures. Kyoto, a cultural center known for its geisha districts and bamboo forests, will implement a revised lodging tax in March 2026. The tax is estimated to reach 10,000 euros (about €56 or $65) with more than 20,000 euros for high-end residences. While budget travelers may face lower prices of ¥300-¥1,000, those who enjoy high-end accommodations may experience a significant increase. According to Kyoto city official Hiroshi Tanaka, this helps protect UNESCO heritage sites from the effects of tourism.

The increase is linked to other amendments: Visa fees for international visitors may also be adjusted in fiscal year 2026, in line with international practices on Japan’s entry fees. The key message is: visit and enjoy what we have to offer, but help support its future.

Income balance argument

Advocates emphasize potential income. The exit tax generated ¥52.4 billion (about €300 million) by 2024, which went towards environmentally friendly transportation, digital temple storage systems, and erosion control at Mount Fuji. A tripling of the tax could bring in more than ¥150 billion a year, if visitor numbers remain, to support “anti-tourism measures,” such as extra shuttle services in Hakone and multilingual signs in Nara.

However, critics raise concerns. Tourism-related businesses, from restaurants to accommodation providers, worry that higher costs will discourage travelers, especially with inflation affecting spending habits. Some argue that Japan’s appeal stems from its accessibility, and that these fees can make it a unique destination. According to Miya Chen, a travel analyst at the Japan Tourism Agency, preliminary surveys indicate limited curb effects. Only about 12% of European respondents suggested they might reconsider their travel plans. However, one can see the “yin fatigue” buzz appearing on various online platforms such as Reddit.

Will travelers still book despite the changes?

For most international travelers, the impact seems manageable: an extra €9 on a ¥200,000 round-trip ticket is often seen as insignificant, especially when compared to other costs during peak season. However, when combined with daily expenses in places like Kyoto, the total cost may add €100+ to a week-long trip. Transit passengers, especially those on layovers, such as flights from Seoul to Sydney, may be more unhappy, given that the tax applies even if they don’t leave the airport.

As the year 2026 approaches, Japan is watching the situation carefully. The 2025 World Expo in Osaka, with an estimated attendance of 28 million, including 10% from overseas, will likely serve as a testing ground for these new policies. If visitor arrivals are the result of positive experiences rather than negative reactions, this increase in taxes may be considered responsible financial management. On the contrary, the result may indicate a serious need for careful sizing, even in Japan.

Currently, it is advisable to book flights for Hanami season. Even as entry requirements arise, the experience itself is exceptionally compelling.