A growing number of local governments in Japan are looking to introduce an accommodation tax that would be levied on guests staying at hotels and inns.

The aim would be to secure funding for tourism-related policy initiatives and enhance infrastructure for accommodating visitors, following a surge in international arrivals since the easing of COVID-19 pandemic restrictions.

But some lodging business operators have voiced opposition to the proposals, while efforts to coordinate between prefectural and municipal governments for designing related tax systems have encountered obstacles in some regions.