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Kyoto Looks to Double Hotel Tax Revenue by 2026


Skift Take

Kyoto plans to introduce Japan's highest accommodation tax—up to 10,000 yen per night—by 2026 to curb overtourism and potentially double its annual revenue.

The Thai Hotel Association and Bank of Thailand released the Hotel Business Operator Sentiment Index for December 2024, showing the national average occupancy rate in the Kingdom was 76%. The survey found that hotels with four or more stars and those with fewer than three were able to boost room rates compared with November. 15% of four-star and above hotels achieved room rates of 5,000 to 7,499 baht per night, while 44% fell within the 2,500-4,999 baht range. Occupancy-wise, hotels in the East led with 83.9% average, up from 70.9% in November. The South was at 76% and the North at 66.6%. The survey predicts average occupancy in January 2025 will be 73%, up from the year earlier.

Sri Lanka tourism will target US$5 billion in revenue in 2025, with a series of promotions to target Chinese arrivals. Sri Lanka is in the middle of the usual seasonal boom in arrivals, finally reaching an average of 11,000 arrivals per day in December. The positive trend is expected to go on until the end of March. Tourism officials are targeting markets like the Gulf and Australia to fill the seasonal void after that. They hope to have arrivals rise to 3 million from the current 2 million by the end of 2025.

Kyoto is set to implement Japan's highest accommodation tax, reaching up to 10,000 yen per night as the city strives to address overtourism and preserve its heritage. The city announced plans to raise its accommodation tax, making it the highest flat-rate levy in Japan. The new tax structure is not set to be implemented until 2026. If things don't change, it could more than double Kyoto's annual accommodation tax revenue. The current tax structure has three tiers on room rates, ranging from 200 to 1,000 yen per night. Fiscal 2024 is estimated to have a total of 4.8 billion yen in accommodation tax revenue.

The Macao Government Tourism Office said the newly implemented visa policy for residents of neighboring cities already has had a positive impact on Macau's visitor numbers. From January 3 to 5, the daily visitor arrivals remained above 100,000, a result of the new, eased visa policy. The MGTO is expecting an influx of mainland Chinese visitors coming to Macau for shopping and festivities for the Lunar New Year holiday. As for the full year, the MGTO is once again focusing on attracting international visitors, hoping to welcome 3 million this year.

Taiwan's first Hyatt Regency hotel has opened. The hotel is located near Taoyuan AirportHyatt Hotels Corporation, in partnership with CAL Hotel Co. Ltd, a unit of China Airlines, unveiled the Hyatt Regency Taoyuan International Airport. The hotel is located adjacent to the MRT Airport Hotel Station and ensures seamless connectivity to the airport via the Taoyuan Metro. The hotel was formerly Novotel Taipei Taoyuan International Airport and will undergo significant enhancements over the next two years. Planned upgrades include renovations to the lobby, guestrooms, and dining venues. The hotel features 476 guestrooms and suites, with the standout being the Regency Executive Suites, taking inspiration from the design of China Airlines' Business Class. Guests on the Regency Floor get exclusive access to the Regency Club. The hotel offers a range of culinary options at The LoungeMarket Café and Wei Fang as well as over 679 square meters of versatile meeting space.

Mayapada Hospitality Holdings announced the opening of voco Bali Seminyak, the first voco premium brand hotel to open in Indonesia. The hotel is branded and managed by IHG Hotels & Resorts and is the ninth hotel in Indonesia developed and owned by Mayapada, four of which are in Bali and managed by IHG. The newly built hotel features 162 rooms and suites, an all-day dining restaurant, Lobby Lounge and a rooftop bar. A fitness center and outdoor swimming pool round out the amenities.

City Motors Group officially opened the 42-story Alfa Bangar mixed-use development in BangsarKuala Lumpur on January 10. The RM450 million development offers 178 serviced apartments with built-ups ranging from 570 to 998 square feet, a 25,900 square foot commercial space and the 220-room Holiday Inn Kuala Lumpur Bangsar. The hotel will be managed and operated by IHG Hotels & Resorts. The hotel offers five meeting rooms, a grand podium ballroom, open lobby lounge, Clover All-Day Restaurant, outdoor pool, and a 24-hour fitness center.

Shimao Group Holdings Ltd. was given a petition for liquidation filed by CPYM Link Investment Limited at the Hong Kong High Court on January 10th. Their Sheraton Hotel in Tung Chung, jointly owned by Shimao and Mingfa Group International, has been on the market since March 2023 with an initial asking price of HK$6 to HK$6.5 billion. It has been re-listed for sale with a deadline of April 15, 2025, with a rumored reduced price of not less than HK$4.5 billion. Savills Property announced the public invitation to sell the hotel which is operated by Marriott. It includes a dual-brand hotel and the T Bay Shopping mall at the base. It has a total of 1,219 rooms, with the Sheraton having 218 five-star rooms and the Four Points by Sheraton offering 1,001 rooms catering to budget-conscious guests.

Speculation is starting that the only way Star Entertainment Group may hold off administration is if they get a bailout from the Australian government. Given how Star got caught and has been crucified for its past sins by the various regional gaming regulatory agencies, it would not make sense for Australia to bail out the group they put in this situation by punishing them for their sins. The more likely situation will be Star trying to sell off anything it can to remain solvent, with many now believing their 50% interest in the new Queen's Wharf in Brisbane may be the first move. The $3.6 billion dining and casino IR is viewed as the centerpiece for the 2032 Olympics, so the government is not going to want this property to fail. It really is a question as to whether Star's partners, Chow Tai Fook Enterprises and Far East Consortium would buy out Star's interest and just have them manage it or if the entire property will be sold to another operator. With Wynn Resorts previously expressing an interest in Crown Resorts and their recent move to buy Crown's London property, we would think Wynn would be the likely buyer.

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