Japanese Hot Spring Destination Hakone to Introduce Accommodation Tax... 350 Yen per Night from 2028

[Financial News Tokyo = Correspondent Seo Hye-jin] Hakone, a Japanese hot spring destination with a population of about 10,000 that attracts approximately 20 million tourists annually, is introducing an accommodation tax. Unlike local governments that restrict the use of tax revenue solely to tourism promotion, Hakone will place no restrictions on how the revenue is used. The aim is to use the accommodation tax to fund various administrative services, taking into account the characteristics of a region with a large number of tourists.
According to The Asahi Shimbun on the 2nd, the Hakone Town Council in Kanagawa Prefecture unanimously passed the accommodation tax ordinance that day. Subject to the consent of the Minister of Internal Affairs and Communications, a fee of 350 yen (approximately 2,993 won) per person per night will be imposed on guests staying at paid accommodations in the area starting in April 2028.
The tax amount is the same regardless of the accommodation fee. Children below elementary school age and students on school trips are exempt. Hakone expects to collect approximately 1.41 billion yen (about 12.0555 billion won) in tax revenue annually.
A key feature of this accommodation tax is that there are no restrictions on how the revenue can be used. Japanese local governments that previously introduced accommodation taxes have operated them as earmarked taxes for specified purposes, such as tourism promotion. Hakone, however, introduced the tax as an ordinary non-statutory tax, allowing it to be used for various administrative services. This is the first time in Japan that an accommodation tax has been introduced in this manner.
Hakone explained that it took into account the local circumstances, in which the number of tourists far exceeds the number of residents. The plan is to use taxes collected from tourists not only to support the tourism industry but also to meet a broad range of administrative needs related to residents' lives.
Hakone Mayor Hiroyuki Katsumata said after the ordinance was passed, "I want to further develop Hakone into a sustainable tourist destination where tourism and residents' lives have a positive impact on each other."
Hakone is the third municipality in Kanagawa Prefecture to decide to introduce an accommodation tax. Since last April, Yugawara has been collecting 300 yen (approximately 2,565 won) or 500 yen (approximately 4,275 won) per night depending on the accommodation fee. Kamakura City, whose accommodation tax ordinance was passed on the 30th of last month, plans to impose a flat rate of 300 yen (approximately 2,565 won) per night.


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