What happened
The Tokyo Metropolitan Government has confirmed a city-wide accommodation tax system based on a 3% rate for hotel rates exceeding 13,000 Yen per person, effective April 1, 2027. This replaces the static 200 Yen per person tax. The exemption threshold is raised from ¥10,000 to ¥13,000. Lower-priced business hotels like APA may remain below the threshold, while expensive properties like Park Hyatt Tokyo will see significant tax increases. Notably, award stays will no longer incur the accommodation fee since the underlying rate is zero, whereas paid stays under the old system might have still incurred the flat fee. Other Japanese cities like Kyoto, Wakkanai, Fujiyoshida, and Nago have also introduced or increased similar taxes