Osaka Considers Implementing Entry Fee Ahead of Japan Expo and IR Opening

The Osaka Prefecture in Japan is wary of overtourism. As the first Japanese integrated resort began construction, local officials were concerned about the “coexistence” of tourists and residents. Because of that, the government is mulling over the introduction of a new “entry fee.”

As reported by The Japan Times, Governor Hirofumi Yoshimura addressed the matter in an interview with journalists. Yoshimura expressed his concern about the increased visitation rates and the future coexistence of foreign visitors and locals, highlighting the importance of acting now.

According to the governor, the fee would be separate from the lodging tax that both foreign nationals and Japanese visitors have to pay. For reference, the accommodation tax requires guests staying at lodgings costing over ¥7,000 a night to pay a fee of between ¥100 and ¥300.

Governor Yoshimura also explained that the new fee would likely be of around the same size as the lodging fee. He added that the proceeds from the new tax would be used to fight overtourism and keep the tourist areas clean.

The details of the new proposal will be finalized in April. According to the Internal Affairs and Communication Ministry, the foreigner-only tax would need approval from the internal affairs minister. If approved, the fee would become the first of its kind in Japan.

This fee would mirror the tourism-regulation levy introduced in Bali Island, Indonesia. Thailand is also considering a similar measure, although it is yet to implement a fee.

The First Integrated Resort in Japan Is on the Way

As Yoshimura pointed out, the fee should be introduced by April 2025, in time for the Osaka-Kansai Japan Expo. According to him, the festival and the eventual opening of the casino resort on the artificial island of Yumeshima are sure to lead to a spike in tourism.

Japan greenlit the revisited IR implementation agreement in September 2023 and allowed the Osaka Prefecture and the MGM Resorts consortium to proceed with their plan. Under the revisited agreement, the initial investment in the property was increased by $1.3 billion to a total of $8.6 billion. These revisions took into mind the rising price of construction materials.

A year ago, the Osaka prefecture selected the business consultancy Deloitte Touche Tohmatsu for the provision of support services for the development of the IR.