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Japan Considers Lodging Tax to Address Tourism Surge


Skift Take

In Japan, local governments are considering and implementing lodging taxes to manage overtourism, despite opposition from hotel businesses fearing loss of guests to neighboring areas.

In Japan, local governments are considering charging tourists a lodging tax to help with overtourism. The number of foreign visitors to Japan continues to surge, with 12 municipalities already introducing a lodging tax while more than 40 others are considering it to help raise money for better tourism infrastructure. The lodging tax is a local tax levied on hotel guests, classified as a special purpose tax. The first one was applied by the Tokyo metropolitan government in 2022 and 12 more have now introduced similar taxes. Visitors to Japan in the first half of 2024 reached a record 17.77 million. This is not widely accepted. In Miyagi Prefecture, 18 groups of lodging businesses convened on July 8 to oppose the tax, submitting it in writing to the Miyagi prefectural government. That government wants a flat 300 yen lodging fee throughout the prefecture. The hotel businesses are afraid the tax will drive hotel guests to neighboring prefectures.

Mandarin Oriental Hotel Group announced it will manage a luxurious hideaway resort with private residences on Bali's southern coast on the Bukit peninsula. Mandarin Oriental, Bali is set to open in 2027. The resort provides panoramic views of the Indian Ocean's azure waters. Guests will enjoy infinity pools and cliff-edge dining while wellness experiences will offer a rejuvenating escape. The resort will include 110 suites and villas offering private terraces or gardens with most featuring private pools. Dining and drinking options include a cliff-edge restaurant and bar, Chinese restaurant, speakeasy bar, and a beach club while a cliff-front lawn is available for weddings and events. The all-inclusive Spa at Mandarin Oriental will offer a serene sanctuary while outdoor swimming pools, extensive fitness center, Kids Club, tennis courts, beach club and a sustainability lab are some of the other amenities that will be offered. The resort is situated adjacent to the Bukit Pandawa Golf Course. Mandarin Oriental's branded Residences will provide 68 private villas, ranging from 3 to 6 bedrooms, set on a 8 hectare site positioned above the hotel. Owners will have access to a dedicated clubhouse, featuring lounge facilities, coworking space, function spaces, family zones as well as a private gym and swimming pool. Residents will have access to the resort facilities.

Accor's Raffles Hotels & Resorts brand, alongside Word Trade Center Building, Inc. and Tokyo Tatemono Co., announced plans to debut the brand in Tokyo. The hotel is expected to open in 2028, part of the redevelopment of Tokyo's World Trade Center in the Hamamatsucho district. The hotel will occupy the top 46 floors of the WTC building. Raffles Tokyo will features 130 guestrooms, including 27 suites. It will include six food and beverage outlets, a state-of-the-art fitness studio, a swimming pool, and a spa, and a bathhouse. The hotel will offer more than 1,156 square meters of multi-functional meeting spaces and facilities.

Lek Hang Group has launched its flagship property, Hotel Central, situated on the Macao Peninsula in China. The hotel is housed in a building dating back to 1928. The hotel underwent a revamp to offer 114 rooms across six types and three historical themes. The property features public areas such as the Historical Culture Corridor, Historical Sightseeing Promenade and the Palace Restaurant. Hotel Central plans to collaborate with other Lek Hang Group ventures, including Restaurante Pou Seak and City Inn.

Lotte Hotel & Resort announced its three operations in JejuSouth Korea – Lotte Hotel JejuLotte City Hotel Jeju and Lotte Resort Jeju Art Villas, have acquired "Green Key", the international certification that is awarded to facilities that are sustainably and eco-friendly in the tourism and service industry.

Lemon Tree Hotels announced the signing of two new properties – Lemon Tree Hotel, Arpora, Goa and Keys Lite by Lemon Tree Hotels Pathankot. Both of the properties will be managed by Lemon Tree's Carnation Hotels Private Limited management arm. The hotels are expected to open in FY 2026. Lemon Tree Hotel, Arpora, Goa will have 57 rooms, a restaurant, banquet hall, meeting room, swimming pool and a spa, located 30 kms from the Manohar International Airportand 42 Kms from Dabolim International Airport. This is the fifth addition to the three operational and one upcoming property for Lemon Tree in Goa. Keys Lite by Lemon Tree Hotels, Pathankot will feature 44 rooms, a restaurant, banquet halls, meeting room, fitness center and other public areas. The Sri Guru Ram Das Ji International Airport is 130 kms from the property.

Indian Hotel Company announced the signing of its fifth Ginger-branded hotel in the Mumbai Metropolitan Region of ThaneMaharashtra. The greenfield project will have 200 rooms with Ginger Thane located in the heart of the business district in close proximity to retail centers. The hotel features Qmin, the Ginger brand's signature all-day diner along with a bar. Other amenities will include a fitness center along with over 2,000 square feet of banquet hall and meeting room space. With the addition of this hotel, IHCL will have 35 hotels, including 12 under development in Maharashtra.

Personnel Moves

Rajit Sukumaran has taken on an expanded role as IHG Hotels & Resorts' Senior Vice President & Managing Director, East Asia & Pacific. Sukumaran has led IHG's South East Asia & Korea business unit over the past four years. He takes on an expanded role and IHG then promoted Vivek Bhalla to Managing Director, SEAK. Bhalla has been with IHG since 2016, most recently as VP, Operations, SEAK.

Crown Perth Chief Executive David Tsai will take up a new national role with Crown Resorts. Tsai has been appointed President and Group Chief Operating Officer, effective August 1. He will oversee the operations across Crown's Australian resorts. Crown Perth Chief Financial Officer Brian Pereira will become Interim Chief Executive while the group conducts a global search. Stanford Le will replace Mark McWhinnie as Chief Executive of Crown Sydney after McWhinnie decided it was time to retire. Le has been the President and Chief Executive of Snoqualmie Casino in SeattleWashington in the United States. He will start in Sydney in the coming months.

But wait, there's more: Gemma Allman will join Crown as Chief Government Relations Officer while Nicole Pelchen will start as Chief Technology Officer at Crown. Finally, Crown said they appointed Louise Tebbutt as Chief People & Culture Officer.

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