The Tax Barometer is composed of four trip elements: lodging, car rental, meals, and airport arrival and departure.  Each element of the trip is priced according to a standard purchase by a hypothetical "WTTC Traveler" in each destination.  This trip includes the purchase of four nights' lodging, four days' car rental, twelve meals, and one set of international arrival and departure airport charges. Taxes imposed on these purchases are then identified, recorded, and developed into a sector index.  Next, these elements are aggregated into a composite index for the destination, based on the average cost of each element included in the standardized trip.  If you would like more information on the development of the Tax Barometer, please refer to our research methodology.

Rank

Total tax $ for 5-day/4-night trip: $93.85 7
Percentage of total item cost: 6.21% 5
Overall tax index:

145

45

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Osaka.  The second item (percentage of total item cost) indicates what percentage of the total bill is devoted to taxes.  The last item (overall tax index) reflects the cumulative change in the amount of tax paid in U.S. dollars between June 1994 and June 2002.  The rankings show how Osaka compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Osaka currently has an overall Tax Barometer index of 145, indicating a 45% increase in travel-related taxes since June 15, 1994, the eighth largest increase among all 52 surveyed destinations.  This change can be attributed to increases in each of the four travel sectors.  For a five-day, four-night trip to Osaka, travelers can expect to pay approximately $94.00 in tourism-related taxes, a total that ranks as the seventh lowest among all surveyed destinations.

 

Rank

Average price for 4-day rental (mid-size) without taxes: $427.86

-

Value added tax/sales tax: 5.00%

-

Total charges for 4-day rental with taxes: $449.26 -
Total tax $ for 4-day rental: $21.40 14
Percentage of total car rental cost: 4.76% 4
Car rental tax index: 167 41


Summary:
 Car rental taxes have increased 67% in Osaka since 1994, the 11th highest increase among all 52 surveyed destinations.  This change can be attributed to the 2.0% increase in Japan's consumption tax that occurred in 1997.  Travelers can expect to pay about $21.00 in taxes for a four-day mid-sized car rental, the 14th lowest total among all surveyed destinations.

 

Rank

Average price for 4-nights lodging without taxes: $507.99

-

Value added tax/sales tax: 5.00%

-

Total charges for 4-nights lodging with taxes: $533.39

-

Total tax $ for four-nights: $25.40

7

Percentage of total hotel room cost: 4.76%

6

Hotel tax index: 167

48


Summary:  Taxes on hotel rooms in Osaka have increased 67% since 1994, the fifth highest increase among all 52 surveyed destinations. 
This change can be attributed to the 2.0% increase in Japan's consumption tax that occurred in 1997.  An extra 3.0% tax that was levied on all purchases over ¥ 30,000 was abolished in April 2000.  For a four-night visit, travelers can expect to pay around $25.00 in taxes, a total that ranks as the seventh lowest among all surveyed destinations.

 

Rank

Average price for 12 restaurant meals without taxes: $504.00 -
Value added tax/sales tax: 5.00% -
Total charges for 12 meals with taxes: $529.21 -
Total tax $ for 12 meals: $25.21 25
Percentage of total restaurant meals cost: 4.76% 5
Restaurant tax index: 167 47

Summary: 
As is the case with car rentals and hotel accommodations, taxes on restaurant meals rose 67% when the Japanese government increased the consumption tax from 3.0% to 5.0% in 1997.  This increase is the fifth largest among all 52 surveyed destinations.  Visitors to Osaka can expect to pay around $25.00 in taxes for 12 restaurant meals, the 25th lowest total among all surveyed destinations.

 

Rank
Passenger service facility charge: ¥ 2650.00 -
Total tax $ for international arrival and departure: $21.84 32
Percentage of total trip cost: 1.44% 25
Air passenger tax index: 102 6


Summary:  Taxes on international air passengers have increased 2% in Osaka since 1994, the sixth lowest increase among all 52 surveyed destinations.  This change can be attributed to a
¥ 50.00 increase in the passenger service facility charge.  The $21.84 in applicable tax charges ranks as the 21st highest among all 52 surveyed destinations.

 

Barometer No. 2: The international passenger facility fee was increased from ¥ 2000 to ¥ 2600. 

Barometer No. 3: Japan instituted a new 3.0% consumption tax on all purchases above ¥ 30,000.  This increase only affects the Tax Barometer's lodging sector.

Barometer No. 5: The consumption tax was increased from 3.0% to 5.0%, affecting the lodging, car, and meal sectors. 

Barometer No. 9: An extra 3.0% tax on purchases above ¥ 30,000 was abolished in April 2000, thus lowering the lodging index.

 


 


 

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