(KPL/KYODO) Kyoto municipal authorities plan to raise the lodging tax for hotels and other accommodation to a maximum 10,000 yen ($63) per person per night from the current 1,000 yen limit, as the city is struggling with overtourism, a source familiar with the matter said Wednesday.

The new amount will be the highest among Japanese municipalities that adopt fixed fee systems, according to the Ministry of Internal Affairs and Communications.

The city introduced a multitiered lodging tax system in 2018. Currently visitors pay 200 yen for stays that cost less than 20,000 yen per person per night, 500 yen for stays ranging from 20,000 yen to under 50,000 yen per night, and 1,000 yen for accommodation costing 50,000 yen or more per night.

Under the new system, the rates will be split into five tiers, with the highest amount being 10,000 yen per night for accommodation costing 100,000 yen or more per night. The city aims to introduce the new taxes in the spring of 2026.

The 200 yen minimum will remain unchanged, but the threshold will be narrowed from less than 20,000 yen per night to less than 6,000 yen per night.

The new system is expected to raise the city's revenue from the lodging tax to 10 billion yen or more from about 5.2 billion yen in fiscal 2023.

The city has been grappling with overtourism amid a surge in overseas visitors. Mayor Koji Matsui said earlier that taxes would be raised "to balance tourism and the livelihoods of local residents."

According to the ministry, lodging tax systems have been introduced in 11 municipalities in Japan. Most municipalities charge fixed amounts, but the town of Kutchan in Hokkaido, where the popular Niseko ski resort is located, charges a flat rate of 2 percent of accommodation fees.

KPL