Japan eyes higher departure tax to fund solutions for overtourism

Japan’s government and ruling parties are discussing plans to raise the International Tourist Tax, currently set at 1,000 yen (around ₱385), in response to growing concerns over overtourism. The tax, which applies to both Japanese citizens and foreign travelers leaving the country by air or sea, was introduced in 2019 and is added to ticket prices.

With the rapid increase in international visitors—36.87 million recorded in 2024—and the government’s target of reaching 60 million by 2030, officials are considering increasing the tax to either 3,000 or 5,000 yen. The goal is to secure more funds to expand transport infrastructure, upgrade airports, and ease the burden on overcrowded tourist areas.

Currently, the revenue from the tax supports tourism promotion, but the government aims to widen its use to include projects tackling overtourism. In fiscal year 2023, the tax generated nearly 40 billion yen, and collections are expected to climb to 49 billion yen in 2025.

The proposal is still under review, with party subcommittees gathering input before presenting it as part of the country’s tax reform plans.