Japan has tripled the International Tourist Tax it charges on those departing the country, effective from Wednesday, in response to increasing tourist numbers in the country.
The Japan National Tourism Organization (JNTO) informed in early May that the tax would be increasing from JPY1,000 (US$6.15) to JPY3,000 (US$18.45), effective from 1 July, noting that the “collected funds support the maintenance of public works, critical infrastructure at airports and tourist sites, restoration of historic assets and the creation of online tourist resources.”
Dubbed the “sayonara tax,” the amount is collected upon departure from Japan and is normally automatically factored into passengers’ ticket fee when departing the country. Despite its official name, the tax applies to all departing travelers, including Japanese nationals.
Any bookings made prior to 1 July are exempt from the tax increase.
According to JNTO data, the country welcomed over 39 million foreign visitors last year, with Chinese visitors making up the majority at 21.2%, followed by Taiwan at 12.8%, the United States at 11.9% and South Korea at 10.4%.
According to The Japan Times, the International Tourist Tax generates about JPY50 billion ($307.3 million) in revenue annually, expected to rise to approximately JPY120 billion($US$737.52 million) after the increase.
The opening of MGM Osaka, slated for 2030, is expected to significantly increase tourism to the country, with a previous estimate for up to 20 million visitors to the metropolis yearly after the property opens.
Analysts – and MGM itself – have estimated the IR could generate as much as US$2 billion in annual EBITDA – of which US$800 million would be attributable to MGM.
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