Tokyo: The Japanese government and the ruling coalition are contemplating a significant increase in the departure tax to address the growing issue of overtourism. The proposed plan could see the current JPY1,000 tax per person increased to JPY3,000 or more, as reported by informed sources on Thursday. This potential hike aims to fund various measures to manage and mitigate the effects of overtourism in the country.

According to Philippines News Agency, discussions regarding the specific amount of the increase are scheduled to take place during the fiscal 2026 tax system reform talks later this year. The departure tax, officially known as the international tourist tax, was first introduced in 2019. It applies uniformly to all travelers departing from Japan, including its own citizens traveling for both business and leisure purposes.

The proposed increase, however, raises concerns about potentially hindering the recovery of Japanese departures, which are currently only about 60 percent of pre-pandemic levels. In light of these concerns, the government is also considering reducing passport issuance fees as a countermeasure.

In fiscal 2024, revenue from the departure tax reached an unprecedented level of approximately 52.5 billion yen, driven by a surge in inbound tourism. These funds are being utilized to enhance the infrastructure and services necessary for accommodating foreign visitors in Japan.