Japan considers tripling departure tax to tackle overtourism

Japan's government and ruling coalition are considering raising the departure tax from ¥1,000 to ¥3,000 or more to fund measures against overtourism. Informed sources said the exact increase will be discussed in fiscal 2026 tax reform talks at year's end. The Liberal Democratic Party also drafted a resolution on Thursday to triple the tax to ¥3,000 within fiscal 2026.

Japan's government and ruling coalition are considering a plan to raise the departure tax from the current ¥1,000 ($6.4) per person to ¥3,000 or more to fund measures against overtourism, informed sources said Thursday.

The tax, formally known as the international tourist tax, was introduced in 2019 and is levied uniformly on all travelers departing Japan, including Japanese nationals for work or leisure. Revenue from the tax hit a record ¥52.5 billion in fiscal 2024, driven by booming inbound tourism, and is used to improve facilities for foreign visitors.

As inbound tourism grows, overtourism issues like congestion and nuisances have become serious in some spots. With Japan's departure tax still below international levels, the proposal has emerged within the government and ruling parties.

On Thursday, the Liberal Democratic Party’s Research Commission for the Establishment of a Tourism Oriented Nation drafted a resolution calling for the tax to be tripled to ¥3,000 within fiscal 2026, which ends in March 2027, and raised to ¥5,000 for business-class and first-class travelers after necessary system updates.

The specific size of the increase will be discussed during fiscal 2026 tax system reform talks at the end of the year. A higher levy could dampen the recovery of Japanese outbound travel, which stands at about 60% of pre-COVID levels, prompting the government to also consider lowering passport issuance fees.

Prime Minister Sanae Takaichi instructed Tourism Minister Yasushi Kaneko earlier this month to examine whether the tax should be increased.

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