Japan, UK Increase Tourist Taxes Amid Fiscal Pressures

Contributing sentiments towards policy:

59% : Kyoto aims to increase annual tax revenue from 5.9 billion yen to 12.6 billion yen (approximately 118 billion won).
59% : This tourist tax domino effect is a global trend.
57% : Timeout, a travel media outlet, cited experts stating, "Since last year, cities introducing or raising tourist taxes have increased exponentially," adding, "Now, travelers must include tax items in their budgets alongside airfare and accommodation."
56% : The government plans to implement the new system as early as the 2027 fiscal year, expecting to more than double annual tax revenue from the current 6.9 billion yen.
56% : Barcelona, Spain, raised its municipal tourist tax to a maximum of 3.25 euros per night.
56% : " Experts, however, assess that the main purpose is often "securing tax revenue without tax resistance."
55% : The tourist tax will be used to improve street cleanliness and public transportation."
55% : A source from Kyoto City explained to the Asahi Shimbun, "The tax will be invested in alleviating congestion and improving infrastructure to enhance tourism quality," adding, "It is an unavoidable measure for tourists and residents to coexist.
54% : Bali, Indonesia, began collecting 150,000 rupiah (approximately 13,000 won) as an entry tax for foreign tourists this year.
53% : Thus, the primary outcome may be increased local tax revenue rather than reduced visitor numbers.
52% : For a 100,000 yen per night stay, the tax would jump from 200 yen to 3,000 yen (approximately 29,000 won) per day -- a 15-fold increase.
52% : According to the Asahi Shimbun, Kyoto City finalized an ordinance revision to raise the accommodation tax cap from 1,000 yen to 10,000 yen (approximately 94,000 won) starting March 1 next year -- the highest level among Japanese municipalities.
51% : Kate Nichols, CEO of UK Hospitality, argued, "Introducing a tourist tax will ultimately lead to higher consumer prices, undermining the price competitiveness of the UK tourism industry," adding, "It is another cost burden on the sector."
51% : According to the Nikkei Shimbun on the 26th, the Tokyo Metropolitan Government is pushing to abolish the current fixed-rate accommodation tax system and introduce a proportional tax.
50% : Nichols warned, "This is effectively equivalent to raising the value-added tax (VAT) to 27%," expressing concern that the UK would lose competitiveness in tourism compared to countries like Germany (7%).
49% : According to a BBC report and the UK government announcement on the 27th (local time), Steve Reed, the UK Minister for Local Government, officially stated that day, "We will grant market mayors in England the authority to impose tourist taxes on guests using hotels and other accommodations."
48% : The government judged that the existing 200 yen tax had minimal revenue impact.
48% : Tokyo is considering a uniform 3% tax on accommodation fees, with no upper limit.
48% : Valencia, Spain, reflected these concerns by withdrawing its tourist tax plan after a change in municipal leadership.
47% : The proportional tax system, while resembling a "wealth tax," ultimately leads to price hikes across the travel industry.
47% : Euro News noted, "For popular destinations, demand is inelastic," meaning tourists bear the cost even with higher taxes.
46% : However, criticism is growing that this is a silent tax hike and that human cultural heritage is being turned into a profit-making tool for local governments.
46% : " This measure allows local governments across England, including London, to enact their own ordinances and collect taxes from lodgers.
46% : Experts warn that indiscriminate tax hikes could, in the long term, reduce a destination's appeal, akin to "slitting open the belly of the goose that lays the golden eggs."
44% : Just one day after the Tokyo Metropolitan Government announced on the 26th that it would abolish the upper limit on accommodation taxes and introduce a proportional tax system, the UK government stepped forward on the 27th, declaring it would grant local authorities the power to impose tourist taxes.
44% : Wealthy travelers spending 1 million won per night are unlikely to cancel trips over a 100,000 won tax.
43% : Previously, some cities like London could not introduce tourist taxes without separate legislative procedures.
38% : Raising resident taxes risks losing votes, but increasing tourist taxes can win residents' favor.
38% : Tourism scholars argue that raising taxes does not resolve overtourism.
35% : Governments justify these taxes by citing the "polluter pays principle" to cover social costs like noise, waste disposal, and cultural heritage damage caused by the tourism surge.
34% : Critics argue that imposing excessive punitive taxes on transient tourists is unjust, as the obligation to pay taxes is granted in exchange for state protection.
27% : Tokyo to implement 3% accommodation tax, UK grants local authority powers as 'silent tax hike' sparks criticism Countries worldwide, thirsty for tax revenue, have jumped into a competition to collect tourist taxes.
20% : " The UK tourism industry, however, strongly opposed the tax, labeling it a "damaging holiday tax."

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