CreatripTeam

Recently, Japan has been in the spotlight for its plan to increase tourism-related taxes up to tenfold to address over-tourism and boost tourism funding. Tourists in Japan must pay a departure tax of 1000 yen (~$10 USD) and varying local accommodation taxes. In contrast, South Korea has reduced its only tourism-related tax, the departure fee, from 10,000 won to 7,000 won (~$7 USD) since July last year. However, there are concerns about whether this reduction will significantly impact attracting more tourists, considering Korea's ongoing tourism trade deficit. Japan's experience shows that increased taxes haven't deterred tourism; rather, they have been used effectively to enhance the tourism infrastructure and experience.