If the Japanese city of Osaka (pictured) can create a “logical” and non-conflict urban entry tax system that can be applied to foreigners, the Japanese government is likely to allow it.
This is according to Joji Kokuryo, managing director of Bay City Ventures Ltd., a Japan-based industrial consulting firm that has been close to the process of casino liberalization in Japan.
Osaka will open an integrated resort (IR) with casinos in 2030, developed by a consortium led by gaming operator MGM Resorts International, and so far the only resort approved in the country.
Last week, Osaka Gov. Hirofumi Yoshimura told the media that the meeting was considering charging “entry fees” to foreign tourists staying in the prefecture, citing concerns about “over-tourism.”
According to data from the municipal government’s website, which parallels the prefectures, 12.31 million international visitors went to Osaka alone in 2019, the pre-COVID-19 pandemic trading year.
Data from Japan’s National Tourism Agency showed that the total number of overseas visitors in the country fell to less than 4.12 million in 2020. The national tally for 2023 was just under 25.07 million.
Osaka will host large-scale events from April to October 2025, which are expected to attract more tourists as well as the region. In 2025, expos in Osaka, Japan, and Kansai will be held on Yumeshima Island, the same place where MGM Osaka Resort will be built.
Yoshimura said last week that the prefecture’s goal was to introduce city entry fees for foreigners in time for Expo 2025.
Regarding the proposed city entry tax submitted to GGRAsia, Mr. Kokuryo said, “If Osaka can come up with a legitimate and logical plan, the Secretary of State will approve it.”
He added, “More checks and balances are required in foreign-only taxes with details on topics such as anti-discrimination and the treatment of foreigners residing in Japan.”
“The overall procedure is not much different from the ‘accommodation fees’ already in place in Osaka,” he said, but noted that it applies to both domestic and foreign visitors.
For hotel stays from 7,000 yen ($47.50) per person per night, Osaka will charge a room rate included in the accommodation fee from 100 yen. These room rates will rise to a maximum of 300 yen for rooms over 20,000 yen. This is according to data from the Osaka Convention and Tourism Bureau.
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