Hotels hit back as Tokyo plans to hike lodging tax with percentage-based system

Tokyo’s hotel sector is fighting plans to replace the city’s long-standing flat-rate lodging tax with a percentage-based levy that could significantly increase costs for tourists and short-term visitors. Analysts and industry groups argue the proposed three per cent tax unfairly targets overnight guests and could dampen Japan’s domestic travel market at a time when locals are already squeezed by a weak yen and rising living costs. Under the current system introduced in 2002, travellers are...