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IN BRIEF
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In a surprising turn of tourist history, Japan is experiencing an unprecedented influx of visitors, attracted by the current weakness of the yen and prices becoming more accessible. In 2024, the country recorded nearly 36.8 million foreign tourists, surpassing even previous records. However, this popularity is not without consequences. Authorities, aware of the challenges related to the overcrowding of iconic locations, are starting to consider significant increases in accommodation taxes, particularly in popular tourist cities like Kyoto. This situation raises crucial questions about the future of tourism in Japan and the fiscal implications that arise from it.
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Japan is witnessing an unprecedented influx of tourists, attracted by now accessible rates and a unique cultural experience. As the country recovers from the restrictions imposed by the pandemic, it is experiencing an unparalleled resurgence of interest, with attendance greatly exceeding expectations. But this good news for the tourism sector hides coming challenges, including rising taxes that could disrupt visitor habits.
An appealing opportunity for travelers #
There was a time when Japan was synonymous with inaccessible holidays for many Europeans. However, 2024 marked a turning point, transforming the country into a destination where value for money is starting to be heard. With the depreciation of the yen against the euro, European visitors find that their savings stretch much further than before. Iconic restaurants serve delicious dishes at unbeatable prices, allowing one to enjoy a bowl of ramen for less than €10. Transport, traditionally expensive, has also become more accessible, making travel across the country not only easy but also affordable.
Soaring numbers #
The numbers speak for themselves: in 2024, Japan recorded the visit of 36.8 million foreign tourists, a spectacular leap compared to previous years. To put this into perspective, this represents almost 5 million more visitors than in 2019, the year before the pandemic. While the tourism growth seems promising, this massive increase also brings its share of challenges.
The flip side: overcrowding #
While the record number of tourists presents economic advantages, it also carries environmental and social consequences. Iconic locations like Kyoto and Mount Fuji are seeing their infrastructures put to the test, causing nuisances for residents and less enjoyable experiences for visitors. Local authorities must respond quickly to manage this overcrowding and preserve the quality of life in these popular regions.
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Anticipating accommodation taxes #
With the aim of addressing these growing challenges, measures are already underway. The municipality of Kyoto, faced with the incessant influx of visitors, has made a bold decision: to increase the accommodation tax tenfold by 2026 for the most upscale establishments. The new pricing, which could reach €60 per night, aims to support sustainable tourism and improve the quality of services for both citizens and tourists.
A delicate transition to sustainable tourism #
As these new tax measures loom on the horizon, Japanese authorities hope that this increased taxation will help balance the influx of tourists and ensure a level of satisfaction for all. However, some stakeholders in the sector appear skeptical, raising questions about the effectiveness of such an approach. It remains to be seen how this policy will translate into reality, but one thing is certain: Japan is at a decisive turning point in managing its incredible tourism popularity.
