TOKYO – Japan’s government and ruling Liberal Democratic Party are considering an increase to the International Tourist Tax, currently set at 1,000 yen (S$8.95) per person, as part of efforts to address overtourism and enhance tourism infrastructure.
The departure tax, imposed on travelers leaving Japan via airplanes and cruise ships, was introduced in January 2019. It applies to both foreign tourists and Japanese citizens departing the country. In fiscal 2023, the tax generated 39.9 billion yen, with revenue projected to rise to 49 billion yen in fiscal 2025.
Amid growing tourism numbers—36.87 million foreign visitors in 2024 and a target of 60 million by 2030—some popular tourist destinations and airports are struggling to accommodate the influx. To counter the effects of overtourism, the government plans to use increased tax revenue for expanding transportation facilities, enhancing airport infrastructure, and implementing measures to improve visitor experiences.
Proposals under consideration suggest raising the tax to either 3,000 yen or 5,000 yen, aligning with higher departure taxes in countries like Egypt (approximately 3,750 yen) and Australia (about 7,000 yen). Discussions are underway within the ruling parties’ tax commission, with an outline of the tax system reform expected soon.
The Japanese government is aiming to strike a balance between promoting international tourism and managing its impact on local communities and infrastructure.