Airport costs and the International Tourist Tax

Committee:
Airlines
status:
No progress
Published:
Airport operating costs in Japan remain high compared with those at many competing airports in the region. The commercial viability of routes continues to be a key factor in decisions to maintain or increase capacity, including services between Japan and Europe. Although recent negotiations with NRT helped contain certain charges, the overall cost environment remains challenging. Airlines are also required to submit fares and surcharges for approval before sale, creating administrative costs and delays that are not typical of many other major markets. In addition, the International Tourist Tax was increased from JPY 1,000 to JPY 3,000 per departure from Japan for departures from 1 July 2026, subject to transitional arrangements. As airlines collect the tax from passengers, clear and efficient administrative procedures are important.

Recommendations

  • The EBC recommends that airport charges be reviewed, with a view to reducing them where possible and improving the competitiveness of Japanese airports. Lower charges would help support the restoration and expansion of international services.
  • Measures taken to reduce charges at domestic airports should be considered as a model for reviewing charges at international airports, while taking account of the different operating conditions.
  • The Government should review the requirement for airlines to submit published fares and surcharges for approval before sale, with a view to simplifying or removing procedures that impose administrative costs without delivering clear benefits to consumers.
  • Regarding the International Tourist Tax, the EBC reiterates its concern about the administrative burden placed on airlines as collection agents and the potential impact on passengers. The Government should ensure that reporting and data requirements are clear, proportionate and compatible with applicable data-protection obligations, including the EU General Data Protection Regulation where relevant. The EBC also calls for transparent reporting on how the revenue is collected, allocated and used.