Congestion and nuisance a serious problem, Japan to triple departure tax to curb overtourism

The ruling coalition in Japan is now considering plans to raise the departure tax from the current ¥1,000 ($6.47) per person to ¥3,000 or more to fund measures against overtourism.

Sources close to the matter told The Japan Times that the government is planning to bring out disincentives to tackle the issue of overtourism in the country.

As per the report, the specific size of the increase will be discussed by the government at the end of the year to plan the tax system reform for the fiscal year 2026.

The reports of the departure tax increase came a day after the ruling Liberal Democratic Party’s Research Commission for the Establishment of a Tourism-Oriented Nation drafted a resolution calling for the departure tax to be tripled within the fiscal year 2026.

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The commission also suggested the figure be raised to ¥5,000 for business-class and first-class travellers, after the necessary system updates.

Not a new law

It is pertinent to note that Japan introduced the departure tax, formally called the international tourist tax, in 2019. The tax is levied uniformly on all travellers departing from Japan, including Japanese nationals travelling abroad for work or leisure.

A higher levy could dampen the recovery of Japanese departures, which currently remain at around 60 per cent of the level before the COVID-19 pandemic. Apart from this, the government is also considering a plan to lower passport issuance fees.

What is noteworthy is that revenue from the departure tax reached a record high of about ¥52.5 billion in fiscal 2024, which was boosted by growing inbound tourism. The proceeds from the tax are being used to improve the environment for hosting foreign visitors in Japan.

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As inbound tourism continues to grow, overtourism, such as congestion and nuisances, has become a serious problem in some tourist spots across Japan. With Japan’s departure tax still below international levels, a proposal to raise it has emerged within the government and the ruling parties.

Japan’s newly elected Prime Minister Sanae Takaichi instructed Tourism Minister Yasushi Kaneko earlier this month to examine whether the departure tax could be increased or not.