Japan begins collecting departure tax to fund inbound tourism promotion

Japan started collecting a 1,000 yen 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.

According to Japan Times, 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.

Source: Azertag