HAKONE: An accommodation tax with no restrictions on how the proceeds can be used is being eyed in Hakone, in Japan’s Kanagawa Prefecture, the local government announced on June 26.
The tax would be levied on stays at hotels, ryokan inns and other lodging facilities in the town, which is one of Japan’s most famous hot spring resort destinations.
The local government aims to introduce the tax in fiscal 2028.
If enacted, it would be the nation’s first accommodation tax without restrictions on how the proceeds can be used. Other local governments have implemented accommodation taxes, but those proceeds must be used for tourism-related purposes.
According to the town, about 800 designated facilities will collect a fixed rate of 350 yen (S$2.80) per person per stay. An exemption will be applied for elementary school students and younger children as well as students on school trips.
The tax is expected to generate about 1.4 billion yen in revenue annually, about 10 per cent of the town’s general account budget.
Every year, more than 20 million tourists visit the town, which has a population of about 10,000. With the number causing an increased burden on waste and sewage treatment, the town is expected to face an annual funding shortfall of 1 billion yen in fiscal 2028.
The town plans to allocate the tax revenue to a wide range of projects in areas such as waste disposal, fire and emergency medical services, and public roads.
The local government plans to submit a Bill to the town assembly in September to implement the new tax. If the Bill passes, the local government will seek approval through discussions with the Internal Affairs and Communications Ministry.
Mayor Hiroyuki Katsumata said: “We aim to develop a tourism-oriented town where tourism and local life have a mutually beneficial impact on one another.” - The Japan News/ANN
