According to Nikkei Asia, Japan is considering raising taxes on international travel by at least three times in a bid to raise funds to combat losses from excessive tourism.
The departure tax is officially known as the International Tourist Tax, and anyone leaving Japan, regardless of nationality, pays 1,000 yen ($6.50) per person.
Some members of the ruling Liberal Democratic Party also support raising interest rates. The government plans to make a decision by the end of the year after consulting with the ruling party’s Tax Commission and other parties.
Taxes will be charged in addition to the amount on your flight or boat ticket. Tax revenue in fiscal 2024 reached a record high of 52.4 billion yen ($340 million)
However, as such a surge could reduce the number of Japanese people traveling abroad, the government is also considering simultaneously lowering passport issuance fees for citizens. Applying online for a passport valid for 10 years costs 15,900 yen ($103). Reducing this amount would require amendments to the Passport Act.
Japan will use the expected increase in tax revenue to combat overtourism through measures such as building new parking lots and trash cans, easing overcrowding on public transport and supporting the introduction of reservation systems at tourist attractions.
According to the Japan National Tourism Organization, the number of visitors to Japan will reach a record high of 36.87 million in 2024. Meanwhile, 13 million Japanese people traveled abroad, a 35% decrease compared to 2019 before the COVID-19 pandemic. The weak yen is thought to be having an impact on both inbound and outbound travel trends.
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