Japan Considers Raising International Tourist Tax to Curb Over tourism

Report by Fida Muhammad Fida

The Japanese government is considering a significant increase in the international tourist tax, currently set at 1,000 yen (RM29.60), as part of efforts to combat over tourism.

A subcommittee within the ruling Liberal Democratic Party (LDP) has proposed raising the tax to either 3,000 yen (RM88.88) or 5,000 yen (RM148.14). The additional revenue is expected to be allocated towards expanding transport infrastructure, upgrading airport facilities, and managing the surge in visitors.

Introduced in 2019, the departure tax applies to both foreign and Japanese travelers leaving the country via flights and cruise ships. With Japan experiencing record-breaking tourist numbers, airports and popular tourist destinations are struggling to cope with demand.

According to the Japan Tourism Agency, 36.87 million foreign tourists visited Japan in 2024, with projections expecting the figure to reach 60 million by 2030. Meanwhile, 13.01 million Japanese citizens traveled abroad last year.

The tax revenue tripled from 2022 to 2023, reaching 39.9 billion yen (RM1.18 billion), and is expected to grow to 49 billion yen (RM1.5 billion) in 2025.

As Japan works to balance tourism growth with sustainability, the proposed tax hike aims to alleviate overcrowding and ensure that the country’s infrastructure can support the rising number of visitors.