Osaka city entry tax idea gets mixed reviews from experts
If the Japanese metropolis of Osaka (pictured) can create a city-entry tax scheme applicable to foreigners that is “logical” and doesn’t conflict with existing legal frameworks, then the country’s national government is likely to permit it.
That is according to Joji Kokuryo, managing director of Japan-based industry consultancy Bay City Ventures Ltd, which has been close to Japan’s casino liberalisation process.
Osaka is due to open in 2030 an integrated resort (IR) with casino, being developed by a consortium led by gaming operator MGM Resorts International, the only one approved for the country so far.
Last week Hirofumi Yoshimura, governor of Osaka prefecture, told media that the conurbation was mulling charging foreign tourists staying in the prefecture an “entry fee”, citing concerns about ‘overtourism’.
In 2019, the trading year prior to the Covid-19 pandemic, Osaka alone received 12.31 million overseas visitors, according to data on the website of the city government, an authority that works in parallel with the prefectural government.
In 2020, the number of overseas visitors for the whole of Japan dropped to just under 4.12 million, according to data from the Japan National Tourism Organization. For 2023, the national tally climbed to just below 25.07 million.
Osaka is due to host in the period April to October 2025 a large-scale event anticipated to draw visitors not only from the region but further afield. Expo 2025 Osaka, Kansai, Japan is to be at Yumeshima island, the same place the MGM Osaka resort will be built.
Governor Yoshimura mentioned last week that the prefecture’s goal was to introduce a city-entry fee for foreigners in time for the Expo 2025.
Mr Kokuryo noted in comments to GGRAsia regarding a proposed city-entry tax: “If Osaka can make a scheme that is legal and logical, the Minister of Internal Affairs and Communications will approve it.”
He added: “There are more checks and balances required for a foreigner-only tax with details concerning topics such as anti-discrimination and the handling of foreign nationals living in Japan.”
Though he noted: “The overall procedure is not too different from the ‘accommodation fee’ that is already in place in Osaka” for hotel stays, “and applies to both domestic and international visitors”.
For hotel stays starting at JPY7,000 (US$47.50) per person a night, Osaka levies a room fee – incorporated in the charge to guests – starting at JPY100. Such room fee rises to a maximum of JPY300 for rooms costing JPY20,000 and above. That is according to data from the Osaka Convention & Tourism Bureau.
Another commentator, Daniel Cheng, offered a slightly more cautious view regarding an Osaka entry tax being implemented. He is a former senior executive with the Hard Rock casino brand, which had explored the possibility of partnering with the northern Japanese prefecture of Hokkaido on an IR before the locality decided not to apply in an initial round of liberalisation.
Mr Cheng told GGRAsia: “There are significant challenges to consider regarding implementation. Achieving fairness and securing approval from the interior ministry would be complex hurdles to overcome. To implement it in time for the Osaka expo next year is an unrealistic time frame.”
He added: “This issue of overtourism had stemmed from complaints among local residents residing in high tourism areas to the extent it disrupted their way of life and also created a stress on the tourism assets and infrastructure.”
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