Japan is witnessing a wave of interest in lodging taxes, with 92 municipal governments reportedly considering the introduction of levies on hotels and traditional ryokan inns, according to a recent Kyodo News survey.

The nationwide survey, conducted between June and July, gathered responses from 1,723 local governments, representing 96% of municipalities. Of those, 42 have either already implemented lodging taxes or are planning to do so, with numbers expected to rise as authorities look to fund tourism-related infrastructure amid surging inbound arrivals.

Introducing a lodging tax requires local governments to pass an ordinance and secure approval from the Minister of Internal Affairs and Communications. By the end of July, 35 municipalities had obtained ministerial approval. Among them, 12 had already begun levying the tax, while the remaining 23 intend to do so by 2026, Kyodo News reported. At least seven municipalities have enacted ordinances and are awaiting ministerial approval.

While 728 local governments reported being “interested” in the concept, 506 indicated they had no plans to introduce such taxes. Sixty municipalities considered the idea but ultimately decided against it, and 296 selected “other,” citing reasons including a lack of relevant accommodation facilities within their jurisdictions.

The survey also explored how revenue from lodging taxes would be used. Developing tourism facilities was the most common response, selected by 537 municipalities. Other priorities included promoting tourism more generally, cited by 434 authorities, preserving historical and natural landscapes (242), and enhancing infrastructure to better accommodate foreign visitors (228).

Among the 92 municipalities actively considering lodging taxes, some raised concerns. One stressed the importance of clearly explaining how revenue would be spent to ensure taxpayer understanding, while another highlighted the potential administrative burden on smaller accommodation providers.

For municipalities that have already implemented or plan to implement lodging taxes, rates generally hover around JPY200 ($1.35) per person per night. In some cases, particularly for more expensive accommodations, rates have been set at JPY1,000 or higher.