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Jan 7, 2019

Japan begins departure tax to fund inbound tourism promotion

Japan begins departure tax to fund inbound tourism promotion photo


TOKYO - Japan started collecting a 1,000 yen ($9) departure tax on Monday from each traveler leaving the country in an effort to fund measures to attract more foreign visitors in the run-up to and beyond the 2020 Tokyo Olympics and Paralympics.


The new tax, which applies to both air and sea travel, will be tacked on to transportation fares of passengers regardless of their nationality. Toddlers under the age of 2 and transit passengers leaving Japan within 24 hours of their arrival will be exempted.


The tax income will be allocated mainly for three purposes -- providing smoother travel services, facilitating access to information on the country's tourist attractions, and improving visitor satisfaction levels by promoting tourism resources in regional areas such as unique local culture and natural features -- according to the government's policy.


In fiscal 2019, the government estimates revenue generated by the departure tax will reach 50 billion yen. It plans to use the money mostly for introducing more facial recognition gates at air and seaports and making more information available in multiple languages at cultural properties.


Japan has enjoyed a surge in the annual number of inbound tourists in recent years, topping the 30 million-mark for the first time in 2018, according to the Japan Tourism Agency.


The increase was helped by a steady increase in Asian tourists, particularly from China, South Korea, Taiwan and Hong Kong, government data showed. Aiming to welcome 40 million foreign visitors by 2020, the government plans to use the tax revenue to attract more visitors from Europe too.


Some Japanese taxpayers have voiced skepticism, however, saying it is not clear how they will benefit from a tax that is primarily designed to offer better services for foreign tourists.


Takuma Asai, 33, who was about to leave Kansai International Airport on a business trip to China, said Monday he was not aware of the start of the departure tax collection and said it felt like another financial burden on top of the planned consumption tax hike in October.


"(The new tax) is unavoidable, but I hope the revenue will be used to benefit Japanese citizens and foreign travelers in visible ways," he said.


Maite Berst, a 21-year-old college student from Germany, also said at Tokyo's Haneda airport that she was unware of the new tax, but that it would not be bad if the revenue is used for foreign visitors.


But concerns are growing in the tourism sector. "Holidaymakers always go for cheaper packages, so even if it's only 1,000 yen, the rise in (tour) prices will be a huge burden for us," said a 47-year-old tour attendant in Osaka.


"It will be necessary to check that the funds are not being used on less productive measures, but in ways that taxpayers find convincing," said Hideaki Tanaka, a finance professor at Meiji University's Graduate School of Governance Studies.

KyodoNewsPlus

KyodoNewsPlus

Kyodo News Plus is an online publication delivering the latest news from Japan. Kyodo News Plus collaborates with City-Cost to bring those stories related to lifestyle and culture to foreigners resident in Japan. For the latest news updates visit the official site at https://english.kyodonews.net


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