Departure tax revenue hits record high in FY 2024 in Japan
Japan's revenue from a departure tax collected from travelers in fiscal 2024 hit a record high amid an influx in the number of visitors, the Finance Ministry said Monday, Kyodo reported.
Although revenue from the tax for the full fiscal year, which runs from April to March, has yet to be calculated with final receipts gathered by the end of May, the total has already reached 48.1 billion yen ($34 billion), eclipsing the previous record of 44.3 billion yen in fiscal 2019, it said. The full total will be announced later.
The government imposes a 1,000 yen International Tourist Tax on each traveler leaving the country, regardless of nationality. After peaking in fiscal 2019, the revenue from the tax dropped sharply during the COVID-19 pandemic, but it has been recovering recently.
The country has been attracting more visitors on the back of a weaker yen and an increase in the number of flights, according to the Japan National Tourism Organization.
Prime Minister Shigeru Ishiba has indicated a willingness to increase the departure tax amid growing calls to raise funds to promote tourism further and address overcrowding at tourist sites.