Kutchan Town, a prime destination within the Niseko region, has introduced a new Accommodation Tax effective from November 1, 2019. This 2% tax, mandated for all lodging within the town, aligns Kutchan with other globally recognized tourist spots, contributing to local infrastructure and the enhancement of the visitor experience.
While new taxes may initially seem unwelcome, understanding the purpose and specifics of this levy can help travelers plan their stays more effectively.
Purpose of the Accommodation Tax
The introduction of the Accommodation Tax in Kutchan Town is a strategic initiative designed with several key objectives in mind:
Manage Tourism Impact: As tourist numbers grow, so does the strain on local infrastructure and resources. The tax aims to mitigate this by funding enhancements and maintenance projects.
Support Township Development: The funds will be invested in projects that elevate Kutchan’s status as a world-class resort destination, ensuring it continues to attract visitors globally.
Improve Visitor Experience: The tax revenue will help enhance the overall quality of the visitor experience in the region by upgrading local facilities and services.
Promote Kutchan: Part of the revenue will be used in marketing efforts to showcase Kutchan’s attractions, further boosting tourism and local businesses.
Infrastructure Enhancements: The tax will fund improvements in public amenities, transportation, and safety measures, directly benefiting both residents and visitors.
Who Needs to Pay?
Understanding the obligation of this tax is crucial for all visiting tourists. The specifics include:
1. Overnight Guests
Any visitor who stays overnight in any accommodation facility within the Kutchan district is subject to the tax.
2. Lodging Prices
It is advised for guests to verify whether the accommodation prices displayed or quoted include this 2% tax to ensure there are no unexpected costs upon payment.
3. Accommodation Providers’ Role
Facilities like Ramat Niseko are tasked with collecting this tax from their guests as part of the checkout process.
Exemptions
Not everyone is required to pay the Accommodation Tax, with specific exemptions in place to accommodate certain groups:
1. Students and Teachers
Those on educational trips, sanctioned and approved by an authorized Japanese school official, are not required to pay the tax. This encourages educational visits and exchanges without the additional financial burden.
2. Diplomats
Individuals holding a diplomatic status, demonstrated through a tax exemption card issued by the Ministry of Foreign Affairs of Japan, are exempt. This facilitates international relations and official visits without the encumbrance of additional taxes.
Understanding the Tax Rate
The Kutchan Accommodation Tax is structured to be both straightforward and minimally intrusive for guests.
Here’s a detailed breakdown of how it works:
2% Tax Rate
The tax is a flat rate of 2% applied directly to the accommodation fee. This rate is consistent, providing simplicity in calculations.
Exclusions from Tax
It’s important to note that the tax is only applied to the cost of lodging. This excludes any additional charges such as meals, ski equipment rentals, transportation services like bus fares, and other ancillary services provided by the accommodation.
Calculation Example
For accommodation priced at ¥10,000 per night (before consumption and accommodation tax), the Accommodation Tax calculates to ¥200. This is derived from the pre-tax accommodation fee, ensuring that guests are taxed fairly based on the lodging expense alone. Total per night fee, including all taxes, would be ¥11,200.
Payment Procedure
The collection and payment of the Accommodation Tax are designed to be seamless for both guests and accommodation providers:
1. Collection by Providers
Accommodation facilities, including hotels and lodges, are responsible for collecting the tax from guests. This is usually done at the time of payment for the stay.
2. Forwarding to Local Council
After collection, the tax is then forwarded to the Kutchan Town council by the accommodation provider. This ensures that the funds are directed appropriately to the town’s development projects.
3. Integrated Booking Cost
For guests, this means the tax is integrated into the total booking cost, allowing for a straightforward and transparent payment process without the need for separate transactions.
Ramat Niseko’s Approach to the Accommodation Tax
Ramat Niseko, in response to the new tax, has taken proactive steps to ensure compliance and ease for its guests:
System Update
The reservation system has been updated to include the Accommodation Tax in all bookings made after October 1, 2019. This update ensures that all reservations for stays commencing from November 1, 2019, are in compliance with the new law.
Retroactive Application
For bookings made before the system update but pertaining to stays after the tax implementation date, Ramat Niseko has applied the tax retroactively. This measure guarantees fairness and compliance across all bookings.
Transparent Pricing
The updated online booking system, along with communications such as quote and booking confirmation emails, now reflects the total cost inclusive of all taxes. This transparency ensures that guests are fully informed of the final price, including the Accommodation Tax, facilitating a smoother planning and booking experience.
Through these measures, Ramat Niseko demonstrates its commitment to providing clear, upfront pricing and supporting the local community’s initiatives through compliance with the Accommodation Tax.
For More Information
Visitors seeking more details on the Accommodation Tax are encouraged to consult the Kutchan Town Office website or contact them directly.
This ensures guests have access to the most current and comprehensive information regarding their stay in Kutchan. You may also refer to this explanation pdf.
Kutchan Town Office
Website: Kutchan Town Office Website
General Info TEL: 0136-56-8001
Collection of Accommodation Tax Info TEL: 0136-56-8002