How much will Tokyo’s new hotel tax cost you?

Japan remains a long-standing favourite destination of Australians – the sights and history, the food and culture – and the exchange rate only strengthens its appeal.

The current exchange rate sees one Australian dollar buying around 110 yen: one of the strongest levels in decades.

But the cost of visiting Tokyo will soon increase, as the city prepares to roll out a 3% accommodation tax on hotels.

Coming into force from April 2027, this will replace the current flat rate of ¥200 (a mere A$2) per person and apply to all hotel rates above ¥13,000 per night.

As a benchmark, popular hotels like the Hilton Tokyo at Shinjuku and the Westin Tokyo near Ebisu currently show nightly rates averaging ¥60,000 for a King Deluxe room – to which the 3% tax would add ¥1,800 per night.

Thankfully, at current exchange rates that’s still just A$16 per person per night, which won’t break the bank, even for a one-week stay (which we’d suggest is the minimum for Tokyo).

According to data from the Japan National Tourism Organisation (JNTO), a record number of more than one million Australians visited Japan in 2025, and this relatively modest increase isn’t likely to change that.

Also read: Is this Tokyo Haneda’s best airport lounge?

Up next: Japan’s digital ETA

Another travel hurdle for Japan lies further ahead, with 2028 expected to see the launch of a digital travel authorisation system for foreign visitors from over 70 countries, including Australians.

Named JESTA (Japan Electronic System for Travel Authorisation), it follows the same approach as the USA’s ESTA and its UK, European and New Zealand equivalents.

Travellers from 74 countries who currently enjoy visa-free visits to Japan under a visa-waiver program will be required to complete their online JESTA application (and have it approved) before boarding their flight to Japan.

ETAs are different from arrival cards, which must be completed by all incoming passengers regardless of whether or not they need a visa.

The new electronic travel authorisation platform will carry an estimated cost of between ¥1,500–¥4,000 (AU$9–$25) per person, valid for multiple entries over a period up to five years.

As with other ETA platforms, travellers will be required to submit details such as their flight, reason for visiting Japan, intended stay, and date of departure.

However, with this data made available to Japan’s immigration service before arrival, the process should speed up entry at the airport.

Also read: Japan’s bullet trains are getting private first class suites