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Kyoto to sharply raise hotel tax in bid to curb overtourism – will it work?

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The popular tourist destination of Kyoto will sharply increase its accommodation tax in a move to earn the ancient Japanese city more cash and cut visitor numbers to ease the worsening problem of overtourism.

Travel companies and residents appear divided on the city government’s plans, with some saying it will be effective in reducing pressure on infrastructure, while others warn tourists will opt to stay in nearby cities, such as Osaka, and still make day trips to Kyoto.

“There are clearly two sides to the argument,” said Masaru Takayama, president of Kyoto-based Spirit of Japan Travel. “Yes, overtourism is a problem in many parts of Kyoto and at particular times of the year, but I am sure that foreign tourists will very quickly realise they can stay in a neighbouring city or town and just visit Kyoto for the day.

“That will not be good for hotel operators and will not effectively reduce the number of tourists [in Kyoto],” he told This Week in Asia.

There are also potential drawbacks that the city has not considered, according to Takayama.

“The plan is inevitably going to affect domestic tourists as well,” he said, pointing out that while Japan would remain a cheap destination for overseas travellers due to the weak yen, prices for Japanese people would still be relatively higher.

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