TSMC Drives Surge in Kumamoto Visitors; Nearby Town Plans to Introduce Accommodation Tax
Following TSMC's expansion into Kumamoto Prefecture, Japan, local business and tourism demand has surged. The nearby town of Ozu is considering introducing an accommodation tax of 200 yen per person per night. A review committee has submitted a report, and the town aims to present a draft ordinance to the assembly as early as September this year.
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- 📰 Published: June 10, 2026 at 23:42
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(Central News Agency, Kumamoto Prefecture, 10th — Combined Foreign Reports) Following TSMC's (Taiwan Semiconductor Manufacturing Company) expansion into Kumamoto Prefecture, Japan, local business and tourism demand has grown rapidly. The nearby town of Ozu, located close to the factory site, is considering introducing an accommodation tax of 200 yen per person per night.
According to Japan's Yomiuri Shimbun, a review committee in Ozu Town, Kumamoto Prefecture, has concluded that "a levy of 200 yen per person per night (approximately NT$40) is appropriate." The committee has submitted its report to Ozu Town Mayor Hideki Kaneda, and the town government is expected to submit a draft ordinance to the town assembly as early as September this year.
The review committee, composed of seven members including experts, representatives from the tourism association, and the chamber of commerce and industry, has been discussing the need for new revenue sources and the use of the accommodation tax since August last year.
The tax will apply to hotels, inns (ryokan),简易宿所 (simple lodgings such as youth hostels and backpacker hostels), and private lodging facilities (minshuku). Regardless of the room rate, the tax will be a flat 200 yen per person per night. The report also states that to gain the understanding of accommodation operators and travelers, the government must thoroughly explain the purpose and use of the accommodation tax and ensure operators have sufficient time for preparations, such as system upgrades.
At a meeting held at the Ozu Town Office on the 8th, the review committee stated, "This will secure a stable source of revenue, and the administrative costs of collection are reasonable. (Introducing the accommodation tax) is the most appropriate decision." This judgment was made considering the anticipated increase in administrative demands on the local government to cope with the continuously growing number of overnight guests.
Regarding the use of the tax revenue, the review committee requested that it be prioritized for projects outlined in the town's tourism vision that are closely related to overnight visitors. For specific details, it recommended "listening to expert opinions annually before formulating and implementing the budget."
According to Ozu Town statistics, the number of overnight guests in the town has exploded since TSMC's entry into Kumamoto Prefecture. In fiscal year 2023, the number of guests staying at just seven major hotels in the town reached 314,084, which is nine times the town's total population. This represents a surge of over 100,000 people compared to fiscal year 2021. Anticipating further increases, the town has set a target of raising the number of overnight guests to 540,000 by fiscal year 2029.
After the meeting, the committee chair, Hiroko Kobayashi, a visiting professor at Tokai University, said, "This town has changed dramatically in recent years. By utilizing the 'geographical advantages' of the nearby airport and TSMC to establish a new source of revenue, it will bring an opportunity for the town to take on new challenges."
According to Japan's Yomiuri Shimbun, a review committee in Ozu Town, Kumamoto Prefecture, has concluded that "a levy of 200 yen per person per night (approximately NT$40) is appropriate." The committee has submitted its report to Ozu Town Mayor Hideki Kaneda, and the town government is expected to submit a draft ordinance to the town assembly as early as September this year.
The review committee, composed of seven members including experts, representatives from the tourism association, and the chamber of commerce and industry, has been discussing the need for new revenue sources and the use of the accommodation tax since August last year.
The tax will apply to hotels, inns (ryokan),简易宿所 (simple lodgings such as youth hostels and backpacker hostels), and private lodging facilities (minshuku). Regardless of the room rate, the tax will be a flat 200 yen per person per night. The report also states that to gain the understanding of accommodation operators and travelers, the government must thoroughly explain the purpose and use of the accommodation tax and ensure operators have sufficient time for preparations, such as system upgrades.
At a meeting held at the Ozu Town Office on the 8th, the review committee stated, "This will secure a stable source of revenue, and the administrative costs of collection are reasonable. (Introducing the accommodation tax) is the most appropriate decision." This judgment was made considering the anticipated increase in administrative demands on the local government to cope with the continuously growing number of overnight guests.
Regarding the use of the tax revenue, the review committee requested that it be prioritized for projects outlined in the town's tourism vision that are closely related to overnight visitors. For specific details, it recommended "listening to expert opinions annually before formulating and implementing the budget."
According to Ozu Town statistics, the number of overnight guests in the town has exploded since TSMC's entry into Kumamoto Prefecture. In fiscal year 2023, the number of guests staying at just seven major hotels in the town reached 314,084, which is nine times the town's total population. This represents a surge of over 100,000 people compared to fiscal year 2021. Anticipating further increases, the town has set a target of raising the number of overnight guests to 540,000 by fiscal year 2029.
After the meeting, the committee chair, Hiroko Kobayashi, a visiting professor at Tokai University, said, "This town has changed dramatically in recent years. By utilizing the 'geographical advantages' of the nearby airport and TSMC to establish a new source of revenue, it will bring an opportunity for the town to take on new challenges."
FAQ
When will Ozu Town's accommodation tax start?
A draft ordinance is expected to be submitted to the assembly in September 2025. Introduction will follow after passage and a preparation period.
How much is the accommodation tax?
200 yen per person per night, a flat rate regardless of the room charge.
Why is Ozu Town introducing an accommodation tax?
To secure a stable revenue source to cope with the surge in tourists following TSMC's expansion.