Japan is set to significantly increase the cost of international travel from July 2026, announcing plans to triple its International Tourist Tax and introduce additional entry inspection fees by 2028. The move reflects mounting fiscal pressures, infrastructure demands and the government’s response to overtourism across key destinations.
The decision, reported on 27 December 2025, comes as Japan prepares its largest-ever national budget amid rising public debt and expanding social expenditure. For stakeholders across aviation, hospitality and inbound tourism, the development signals a structural recalibration of Japan’s visitor economy.
Departure Tax to Rise from ¥1,000 to ¥3,000
Under the approved framework, Japan’s International Tourist Tax — commonly referred to as the departure tax — will increase from ¥1,000 to ¥3,000 per person beginning July 2026.
Introduced on 7 January 2019, the levy applies to all individuals aged two and above departing Japan by air or sea, regardless of nationality. The tax is automatically incorporated into airline and ferry tickets. Exemptions remain in place for aircraft crew members and transit passengers departing within 24 hours of arrival.
Government estimates indicate that revenue in fiscal year 2026 (April 2026–March 2027) will rise approximately 2.7 times year-on-year to around ¥130 billion, reflecting the scale of Japan’s inbound visitor base.
Overtourism and the “Polluter Pays” Principle
Officials have stated that proceeds from the tax will continue to be directed toward enhancing travel infrastructure and promoting regional tourism development. However, the latest increase is explicitly linked to addressing overtourism pressures.
Congestion management, environmental strain and waste processing costs in high-traffic destinations have intensified as Japan’s visitor numbers rebound and expand. Authorities have framed the higher levy within a “polluter pays” principle — positioning the measure as a contribution toward sustainable tourism management.
For travel and tourism executives, the policy signals Japan’s intent to balance growth ambitions with community sustainability, particularly in heavily visited urban and heritage zones.
Entry Inspection Fees Linked to JESTA from 2028
In addition to the higher departure tax, Japan plans to introduce new entry-related charges beginning in 2028. These will be tied to the forthcoming Japan Electronic System for Travel Authorization (JESTA) — a pre-arrival screening mechanism modeled on systems such as the United States’ ESTA and the European Union’s upcoming ETIAS.
Under JESTA, travellers from visa-exempt countries will be required to submit personal information online prior to travel and undergo security screening. The proposed fee is currently under discussion within a ¥2,000–¥3,000 range per traveller.
The system aims to enhance border security, prevent illegal employment and strengthen counter-terrorism safeguards while streamlining arrival procedures.
Once implemented, overseas visitors could face a combined cost of approximately ¥5,000–¥6,000 per person from 2028 onward when factoring in both the increased departure tax and JESTA-related charges.
Visa Fee Adjustments on the Horizon
The government is also considering increasing visa issuance fees — potentially by up to five times — beginning next year. Travellers from visa-free countries visiting Japan for short-term stays of up to 90 days would not be affected by visa fee changes.
However, visitors from countries requiring visas — including China and parts of Southeast Asia — are expected to face higher entry costs, potentially influencing travel demand patterns across key source markets.
Fiscal Backdrop: Record Budget and Rising Debt
The expanded reliance on tourism-related levies comes amid broader fiscal challenges. On 27 December, Japan’s Cabinet approved a record ¥122.31 trillion national budget for fiscal year 2026.
Rising social security spending driven by demographic aging, alongside increased defence expenditures, continues to strain public finances. Government bond issuance to cover revenue shortfalls is approaching ¥30 trillion, while national debt is estimated at roughly twice the size of GDP — the highest debt-to-GDP ratio among G7 economies.
Against this backdrop, tourism-generated revenue is increasingly viewed as a strategic funding stream to offset public expenditure pressures without broad-based tax increases.
Implications for the Travel Industry
For airlines, tour operators and destination strategists, the immediate financial impact per traveller remains relatively modest compared to long-haul airfare costs. However, cumulative fee increases — particularly when combined with visa adjustments — may influence price-sensitive segments and regional competitiveness.
At the same time, Japan continues to pursue ambitious inbound targets, including welcoming 60 million international visitors by 2030. The success of that strategy will depend on whether higher entry costs are perceived as a reasonable sustainability contribution or a deterrent in an increasingly competitive Asia-Pacific tourism landscape.
As Japan recalibrates its tourism funding model, the policy underscores a broader global trend: destinations facing overtourism and fiscal constraints are increasingly turning to targeted traveller levies to balance growth with sustainability.
