The city assembly of Kyoto passed an ordinance by a majority vote Tuesday to raise its maximum accommodation tax to ¥10,000 ($66) per guest per night.
The amount will be the highest among areas using a flat-rate tax system across the country, according to the internal affairs ministry. Once approved by the internal affairs minister, the ordinance will take effect in March 2026.
The city currently collects between ¥200 and ¥1,000 in taxes per night per guest, depending on hotel rates.
The ordinance will allow the city to collect ¥10,000 for hotel stays costing ¥100,000 or more, on top of ¥200 for stays costing less than ¥6,000, ¥400 for stays costing between ¥6,000 and less than ¥20,000, ¥1,000 for stays costing between ¥20,000 and less than ¥50,000, and ¥4,000 for stays costing between ¥50,000 and less than ¥100,000.
The city's revenue from accommodation taxes totaled some ¥5.2 billion in fiscal 2023. It expects the hike in the upper limit to boost tax revenue to about ¥12.6 billion.
Kyoto plans to use some of the increased revenue to combat overtourism, such as by easing bus congestion amid a surge in tourists.
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