Japan's Oita Pref. to start collecting lodging tax in June 2027

Oita Prefecture in Japan's Kyushu region will commence collecting a new lodging tax on June 1, 2027, announced Governor Kiichiro Sato. The tax was officially approved after receiving consent from the internal affairs minister in late September this year. Initially planned for late January 2027, the start date was delayed due to concerns over the financial burden on lodging operators, who would have to contend with the same timing as the Kyushu recovery support discount, a program aimed at supporting the tourism industry after the July Kumamoto earthquake.

According to the prefecture's announcement on October 6, the tax will apply to all hotels, inns, and other lodging facilities within Oita Prefecture. The tax rate is determined by the room-only rate per night: 100 yen for stays under 5,000 yen (approximately $32), 200 yen for rates between 5,000 and 20,000 yen (about $126), 500 yen for rates between 20,000 and 100,000 yen (roughly $630), and 2,000 yen for rates of 100,000 yen or more.

The prefecture anticipates generating around 1.86 billion yen (approximately $11.75 million) in annual tax revenue.

Sato emphasized the importance of tourism to the region, stating that the new tax will provide a funding source to bolster promotional efforts. The prefecture plans to distribute 70% of the remaining tax revenue, after accounting for funds set aside for disaster response and other expenses, to municipalities. Sato expressed the prefecture's commitment to thorough preparations for the implementation of the new tax.