In August 2027, Japan’s Tourism Agency, under the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), submitted a budget request of approximately ¥189.98 billion for fiscal year 2027 (Reiwa 9). This marks the largest budget allocation in the agency’s history and signals Japan’s strong commitment to strengthening its tourism infrastructure and foreign visitor reception systems.

This article provides a comprehensive analysis of the budget, its background, and its implications for foreign nationals residing in Japan, their families, and the companies that employ them—from the perspective of an immigration legal specialist.

1. Overview of the Tourism Agency Budget and Funding Sources

The FY2027 Tourism Agency budget is divided into two main components:

  • Projects funded by the International Tourist Tax: ¥180 billion
  • Projects funded by general revenue: ¥9.976 billion

Additionally, ¥566 million has been earmarked separately for tourism recovery efforts following the Great East Japan Earthquake.

A key highlight is the significant increase in projects funded by the International Tourist Tax (commonly known as the “departure tax”), which has grown from ¥130 billion in the previous fiscal year to ¥180 billion—a 1.38-fold increase. This expansion is largely due to the tax rate hike implemented in July 2026, when the departure tax was raised from ¥1,000 to ¥3,000 per person.

2. What Is the International Tourist Tax? — Its Mechanism and the Rationale Behind the Increase

The International Tourist Tax (departure tax) is levied on all travelers departing from Japan, regardless of nationality. It is collected by airlines and other carriers and added to the ticket price.

Introduced in 2019 at ¥1,000 per departure, the tax was designed to fund tourism infrastructure improvements and enhance the reception environment for inbound visitors. However, in recent years, Japan has experienced a sharp rise in inbound tourism, leading to what is commonly referred to as “overtourism.” This phenomenon has caused congestion at popular destinations, traffic jams, waste management issues, and disruptions to local communities.

In response, the government tripled the departure tax to ¥3,000 in July 2026. The resulting annual tax revenue is estimated at approximately ¥130 billion, which the Tourism Agency plans to use for strengthening destination management, environmental conservation, and regional revitalization.

3. Direct Impact on Foreign Residents in Japan

3-1. Increased Costs for Temporary Returns and Business Travel

The departure tax increase applies to all departures from Japan, including those by foreign residents. The following groups are particularly affected:

  • Expatriates and Foreign Employees: Those who travel abroad several times a year for business or personal reasons will face an additional ¥3,000 per departure. For example, four trips per year result in an extra ¥12,000 annually.
  • International Students: Students returning home during summer or spring breaks will incur an additional ¥6,000 per round trip.
  • Technical Intern Trainees and Specified Skilled Workers: Temporary returns during their contract periods will become more expensive.
  • Permanent Residents and Long-term Residents: Frequent travelers for family events, caregiving, or other personal reasons will also face a higher financial burden.

HR departments in companies employing foreign nationals should review their benefits packages, particularly travel allowances, to account for this increased cost.

4. Breakdown of General Revenue Budget and Key Highlights

The ¥9.976 billion general revenue budget is structured around three pillars:

4-1. Strategic Inbound Tourism Promotion and Ensuring Quality of Life for Residents (¥6.671 billion)

This initiative aims to attract foreign tourists while preserving the living environment of local communities. Specific measures include:

  • Support for implementing time-based pricing to reduce congestion
  • Multilingual guidance and etiquette awareness campaigns
  • Community-focused tourism development that emphasizes coexistence

These efforts will create a safer and more comfortable environment for both tourists and foreign residents.

4-2. Domestic Exchange and Outbound Expansion (¥1.22 billion)

This budget item has increased 2.44 times from the previous year’s ¥500 million. Key initiatives include:

  • Promoting two-way exchanges through working holiday programs
  • Encouraging international educational travel
  • Utilizing regional airports for mutual exchange programs

This expansion presents opportunities for companies to access new talent pipelines through overseas recruitment and international internship programs.

4-3. Strengthening Tourism Destinations and the Tourism Industry (¥1.187 billion)

This includes human resource development for the tourism sector, support for licensed tour guides, and improvement of tourism statistics. These measures also contribute to a better reception environment for foreign workers.

5. How the ¥180 Billion International Tourist Tax Will Be Used

The ¥180 billion funded by the departure tax will be allocated to three priority areas:

5-1. Creating Stress-Free and Comfortable Travel Environments

  • Enhanced multilingual support at airports and train stations
  • Expansion of Wi-Fi infrastructure
  • Promotion of cashless payment systems
  • Advancement of barrier-free facilities

These improvements benefit not only tourists but also foreign residents in their daily lives.

5-2. Facilitating Access to Information on Japan’s Diverse Attractions

  • Development of multilingual tourism information websites
  • Utilization of social media and digital marketing
  • Strengthening the functions of tourist information centers

Foreign residents will also benefit from improved access to local information and community events.

5-3. Developing Tourism Resources Based on Regional Culture and Nature

  • Support for the removal and regeneration of abandoned buildings in hot spring resorts
  • Development of snow resorts
  • Preservation and utilization of cultural properties and natural heritage sites

These initiatives are expected to support regional revitalization and the integration of foreign residents into local communities.

6. The Intersection of Overtourism Countermeasures and Policies for Foreign Resident Integration

The Tourism Agency has explicitly prioritized “preventing and mitigating overtourism.” This is not merely a tourism policy but a critical step toward realizing a society where foreign nationals can coexist harmoniously with local communities.

The rapid increase in foreign tourists has created friction with residents in some areas. Similarly, the growing number of foreign workers and students has raised challenges related to community integration. The Tourism Agency’s initiatives represent a pioneering effort to address “coexistence” within the tourism sector, and they are likely to influence future visa and employment policies.

7. Key Considerations for HR Managers

7-1. Review of Employee Benefits

In light of the departure tax increase, consider revising repatriation allowances and overseas travel benefits for foreign employees.

7-2. Maintaining Employee Morale

Demonstrating consideration for increased costs can enhance employee satisfaction and retention.

7-3. Incorporating Government Programs into Recruitment Strategies

The expansion of working holiday and international educational travel programs offers new opportunities to build talent pipelines. Leveraging these initiatives can strengthen recruitment strategies.

7-4. Compliance and Staying Informed

Visa and employment regulations are evolving annually. Staying current with policy changes and ensuring proper procedures are followed is essential for corporate risk management.

8. Future Outlook and Considerations

The expansion of the Tourism Agency’s budget is part of Japan’s broader transition from a “tourism-oriented nation” to a “society of coexistence.” The following developments are anticipated:

  • Further revisions to the residence status system
  • Expansion of foreign worker acceptance and enhanced livelihood support
  • Promotion of multicultural coexistence at the community level
  • Digitalization of administrative procedures for greater efficiency

To navigate these changes effectively, both companies and individuals will benefit from expert guidance.

9. Conclusion

The substantial increase in the Tourism Agency’s FY2027 budget reflects Japan’s commitment to becoming a society that genuinely welcomes foreign nationals. While the departure tax increase imposes a short-term financial burden, the revenue it generates is expected to fund the development of an environment where foreign residents can live and work comfortably.

For foreign nationals, their families, and the companies that employ them, understanding these policy trends and responding appropriately will be increasingly important in the years ahead.

Our office provides not only visa application and residence status support but also consulting services based on the latest policy developments. Please feel free to contact us with any questions or concerns.

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