Tokyo introducing new hotel tax for travellers, which could add $200 to your bill

Tokyo might be one of the most popular places for Aussies to visit right now, but it’s about to cost you a little more to stay there.

The city has increased its hotel tax in direct response to overwhelming tourist numbers, which could add hundreds of dollars to your holiday budget.

The massive increase in tourist numbers is putting huge pressure on the infrastructure of Japan’s major tourist destinations.

The government wants to raise funds to improve tourist services and direct money to the regions to try and disperse tourists across the country.

The city of Kyoto confirmed it would charge an increased accommodation tax from March 2026. And now Tokyo is following in its footsteps.

Starting from April 2027, the city will introduce a 3 per cent accommodation tax on hotels, meaning that for every night you stay, you’ll have to pay an increased fee per person per night.

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Currently, hotel guests pay a flat rate of ¥200 ($2) per person per night.

So what does this new tax look like in dollars and cents? A night at the Hyatt Regency Shinjuku or the Westin Tokyo currently averages about ¥65,000. A three per cent tax would add about ¥18,000 – or an extra $16 per person per night.

That means couple staying in Tokyo for a week would have to add about $230 to their hotel budget.

The city of Kyoto began charging an increased accommodation tax from March 2026. Travellers staying in luxury hotels (above $1000 a night) pay the most - ¥10,000 ($100) per night.

Rooms costing between $500 and $1000 per night incur roughly $40 tax each night, while those paying between $200 and $500 pay around $10 per night.

Hotel taxes aren’t the only way Japan is cashing in on its tourism boom.

The exit fee for travellers leaving Japan increased as of July 2026. Now everyone leaving Japan, even locals, have to pay a 3000 yen (about $26) departure fee per traveller – almost triple what it used to be. The fee will be automatically added to your ticket.

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Last year, dual ticket pricing was introduced for a lot of big tourist attractions, charging overseas visitors up to double the price of locals.

Coming up, November 1, 2026 the tax free status on shopping for overseas visitors will change. You still won’t have to pay the tax but it will be a more cumbersome process.

Currently, the 10 per cent GST is currently waived at the register if you show your passport. After the change you will have to keep all your receipts and submit them to customs for a refund.