With the winter sports season in full swing, skiers, snowboarders and those who just want to experience the snow are once again descending on Hokkaido. But the influx of so many visitors has highlighted a shortage of services to meet their needs, which cash-strapped cities, towns and villages that face declining populations and lower tax revenues are increasingly hard-pressed to finance.
A rising number of Hokkaido towns and villages are discussing the introduction of a local accommodation tax, following decisions by the prefecture and Sapporo to tax lodgers beginning in April 2026. Two such levies are already in effect on those staying at Japanese style inns, hotels and private lodging facilities in Niseko and Kutchan.
The Kutchan tax was introduced in November 2019. In fiscal 2023, it provided ¥200 million in funding for local projects related to tourism infrastructure. For the 2024 fiscal year, the levy is expected to bring in around ¥260 million.
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