Izu Considers Introducing Tourism Tax for Day Visitors and Overnight Guests

The seaside resort town of Izu in Shizuoka Prefecture is considering introducing a "tourism tax" to promote tourism. This tax would be collected not only from overnight guests but also from day visitors.

Mayor Yutaka Kikuchi announced the proposal at a news conference on February 20th, stating that a targeted tax would support urban development through tourism. This initiative is rare, as the trend of imposing taxes on tourists to secure funding for tourism promotion is growing across the country.

The city plans to develop the system in detail and consult with stakeholders, aiming to launch the tax in fiscal 2028. Instead of raising the existing bathing tax, Izu plans to introduce a new tourism tax. Currently, around 50 million yen ($334,000) out of the 110 million yen collected from the bathing tax is redirected to promote tourism.

The city plans to introduce tiered tax rates for accommodations due to the varying price ranges among facilities. For day visitors, a fixed rate is being considered, with the tax possibly collected at large tourist facilities and parking areas within tourist zones.

Izu will specify the use of the tourism tax in the Basic Scheme of Tourism Promotion to be formulated in fiscal 2025. Explanations to stakeholders, the enactment of an ordinance, and discussions with the internal affairs ministry and other relevant parties will take place in fiscal 2026 and 2027.

According to the city's Tourism and Commerce Department, around 760,000 people stayed overnight in the city in fiscal 2023, while the total number of tourists was around 3.5 million.

Other examples of taxes imposed on visitors to tourist destinations include the bathing tax and accommodation tax. For day visitors, Hatsukaichi in Hiroshima Prefecture imposes the Miyajima Visitor Tax, while four villages in Okinawa Prefecture levy an entry tax. However, unlike an island, Izu cannot easily track all incoming visitors, making it challenging to ensure a fair taxation system.

In eastern Shizuoka Prefecture, Atami city is set to introduce an accommodation tax in April, while Higashi-Izu town and Ito city will raise their bathing taxes in March and October, respectively.

Oyama Town Mayor Masahide Komiyama also announced plans to establish a Destination Management Organization (DMO) and consider implementing an accommodation tax as a funding source. The town estimates that 180,000 people will stay overnight in fiscal 2024, with inbound tourists accounting for 76 percent of these visitors.