| 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: |
$97.31 |
9 |
|
Percentage of total item cost: |
6.27% |
6 |
|
Overall tax index: |
161 |
47 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Tokyo. 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
Tokyo compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary: Tokyo currently has an
overall Tax Barometer index of 161,
indicating a
61% increase in
travel-related taxes since June 15, 1994,
the sixth 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
Tokyo, travelers
can expect to pay approximately $97.00 in tourism-related taxes, a
total that ranks as the ninth lowest among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$416.44 |
- |
|
Value added tax/sales tax: |
5.00% |
- |
|
Total charges for 4-day rental with taxes: |
$437.26 |
- |
|
Total tax $ for 4-day rental: |
$20.82 |
12 |
|
Percentage of total car rental cost: |
4.76% |
4 |
|
Car rental tax index: |
167 |
42 |
|
Summary:
Car rental taxes have increased 67% in Tokyo 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. Despite this increase, travelers can expect to pay
only about $21.00 in taxes for a four-day
mid-sized car rental, the 12th lowest total among all
surveyed destinations. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$644.00 |
- |
|
Value added tax/sales tax: |
5.00% |
- |
|
Tokyo hotel tax (per night): |
¥
200 |
|
| Total
charges for 4-nights lodging with taxes: |
$683.13 |
- |
|
Total tax $ for four-nights: |
$39.13 |
15 |
|
Percentage of total hotel room cost: |
5.73% |
11 |
|
Hotel
tax index: |
203 |
50 |
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary: Taxes on hotel rooms in
Tokyo have increased 103% since 1994, the third highest increase among
all 52 surveyed destinations.
This change can be attributed to a 2.0% increase in Japan's
consumption tax that occurred in 1997, and to the introduction of a
new hotel tax in 2002. An extra 3.0% tax that
was levied on all purchases over ¥
30,000 was abolished in April 2000. The
hotel tax is levied at a rate of ¥
200/night for rooms costing over ¥
15,000, and
¥
100/night for rooms costing between ¥
10,000-14,999. Rooms costing less than ¥
10,000/night are exempt from this tax, which goes
into effect in October 2002.
For a
four-night hotel stay, travelers can expect to pay around $39.00 in taxes,
a total that ranks as the 15th lowest among all surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$410.80 |
- |
|
Value added tax/sales tax: |
5.00% |
- |
|
Total charges for 12 meals with taxes: |
$431.34 |
- |
|
Total tax $ for 12 meals: |
$20.54 |
20 |
|
Percentage of total restaurant meals cost: |
4.76% |
5 |
|
Restaurant tax index: |
167 |
47 |
Summary: 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 Tokyo can expect to pay around $21.00 in taxes for 12
restaurant meals, the 20th lowest total among all surveyed
destinations. |
 |
Rank |
|
Passenger service facility charge: |
¥
2040.00 |
- |
|
Total tax $ for international arrival and departure: |
$16.82 |
25 |
|
Percentage of total trip cost: |
1.08% |
18 |
|
Air passenger tax index: |
102 |
6 |
Summary:
Taxes on international air passengers have increased 2% in Tokyo since
1994, the sixth lowest increase among all 52 surveyed destinations.
This change can be attributed to a
¥ 40.00
increase in the passenger service facility charge. The $16.82 in
applicable tax charges ranks as the 28th highest among all 52 surveyed
destinations. |
 |
|
Barometer No. 2:
The passenger service facility
charge was increased from
¥ 2000.00 to ¥
2040.00.
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:
The extra 3.0% tax on purchases above
¥
30,000 was abolished in April 2000, thus lowering
the lodging index.
Barometer No. 11:
A new hotel tax went into effect on October 1, 2002. The tax is
levied at a rate of ¥100/night for rooms costing ¥10,000 - ¥14,999 and
¥200/night for rooms over ¥15,000. The tax is not applied to rooms
costing less than ¥10,000 per night.
|
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