The governor of Osaka Prefecture stated on Wednesday that they are considering implementing a fixed fee for foreign visitors, potentially aligning it with the commencement of the World Expo in western Japan in April 2025.
According to Kyodo News, the proposed fee aims to finance measures addressing “overtourism.” The concern arises as the Prefecture plans to open an integrated resort featuring a casino in 2030 on Yumeshima, an artificial island in Osaka Bay and the venue for the 2025 Expo.
As of now, the Ministry of Internal Affairs and Communications confirms that local governments in Japan have not implemented any taxation scheme specifically targeting foreigners.
The ministry stated that it requires approval from the internal affairs minister to implement such a system, with specific details yet to be finalized. In addition, the prefectural government must overcome certain obstacles, including ensuring the consistency of the levy system with the nation’s tax conventions.
The prefectural government intends to establish a panel to address this issue in April.
Currently, the prefecture imposes an accommodation tax ranging from JPY100 ($0.67) to JPY300 ($2) on room fees of JPY7,000 ($47) or more per night, applicable to both Japanese and foreign guests. Yoshimura recommended a similar fixed fee amount for consideration.
Japan’s first integrated resort is expected to cost around $13.5 billion and will be developed jointly by US casino operator MGM Resorts International and local partner Orix Corp. The project is scheduled to open its doors in the autumn of 2030.
The Osaka IR plans to include hotels and amenities, such as MGM Osaka, MGM Villas, and the MUSIIB Hotel, with a total of 2,500 guest rooms. It will also feature a variety of dining and food & beverage offerings, retail space, a spa, a fitness center, and banquet halls.
Osaka expects to attract 20 million visitors a year with its first casino, which may help Japan achieve its long-term target of attracting 60 million annual foreign tourists by 2030.
