Japan to Raise Inbound Tourism Fees Instead of Taxes

Tourists near a gate in Asakusa, Tokyo
Picture: gandhi / PIXTA(ピクスタ)
As inbound travel keeps booming, Japan says it will use the revenue to fund overtourism measures and make high school free.

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Japan is moving to increase financial charges on inbound travelers as it searches for new revenue sources without raising taxes on its own citizens. The government is weighing higher visa fees, a steeper departure tax, and a new pre-entry screening charge, arguing that Japan’s current rates remain far below international standards.

Domestic tax hikes face political resistance

Picture: yoshihiro52 / PIXTA(ピクスタ)

The Japanese government is considering a wave of increased charges targeting foreign nationals. It plans to raise the departure tax and visa issuance fees, and introduce a new fee for pre-entry screening. The move aims to secure revenue without burdening Japanese citizens as inflation remains high, and domestic tax hikes are politically difficult.

Japan has kept its visa fees unchanged since 1978. As a result, they are now one-tenth of Western levels.

A single-entry visa to Japan costs about 3,000 yen ($19). In contrast, a U.S. tourist or business visa costs 185 dollars (28,000 yen). European countries charge around 90 euros (roughly 16,000 yen).

The government is also considering raising fees for residency procedures. These fees were already raised in April, marking the first update in 44 years since 1981.

For the new pre-entry screening system for visa-free travelers, Japan plans to charge a fee similar to the U.S., which collects $40 (6,000 yen). The current 1,000-yen departure tax may also be raised to around 3,000 yen, and Japanese nationals will be subject to it as well.

Overtourism measures and free high school tuition

The government plans to use the increased revenue to ease overtourism and enhance immigration screening.

According to multiple government officials, if the revenue exceeds those costs by a wide margin, one proposal is to use the surplus to fund the expansion of free high school tuition. Three Japanese political parties – the ruling Liberal Democratic Party (LDP), Kōmeitō, and Japan Innovation Party (Nippon Ishin no Kai) – have already agreed to expand free high school tuition, which is estimated to cost about 400 billion yen.

However, funding for this and for other policies, such as abolishing the provisional gas tax, remains uncertain. With inflation hitting households, raising taxes on Japanese citizens is politically difficult. As a result, the government is considering shifting the burden to foreign nationals, who cannot vote and are less likely to push back.

Support, concern over fee hikes

People walking across a crosswalk at Ginza at dusk.
Picture: Ryuji / PIXTA(ピクスタ)

 On the streets, public opinion is divided. In Tokyo’s Ginza district, a popular spot for foreign tourists, people shared mixed views on the proposed fee hikes.

A shopper said, “I think raising the fees is good. Japan lacks funding. I’m sorry, but we should use revenue from foreigners to manage crowds and hire more security staff.”

Another shopper said, “I totally agree, but it’s foreigners who are doing the shopping. The economy might stall. It could hurt businesses.”

Businesses also expressed concern. A spokesperson from Takashimaya (a major Japanese department store chain) commented, “If the number of inbound visitors declines, it could affect department store traffic. We will continue working to ensure customers enjoy shopping with us.”

Expert: Hikes could hinder international exchange

As anti-immigrant sentiment spreads globally, higher costs for foreigners could hinder cross-border travel and exchange, deepening global division.

Professor Tanaka Hideaki, a public finance expert at Meiji University, said, “We need to review fees that are too low. However, we must ensure that excessive burdens do not impede international exchange.”

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Sources

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出国税やビザ発行の値上げ検討 外国人負担増、高校無償化の財源念頭 朝日新聞

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