IATA cautions Japan over air departure tax plan
Global air trade group IATA is warning Japan a proposed departure tax would hit the currently booming tourism industry.
Japan is targeting 40 million visitors in 2020 as it hosts the Tokyo Olympics, but that could be impacted by a departure tax.
The country wants to implement a tax of 1,000-2,000 yen (about $9-$18) for all air travellers when departing the country in order to raise funds for tourism marketing.
It would be applicable for Japanese nationals as well as foreign travellers.
Japan plans to introduce it during the 2019 fiscal year.
IATA estimates a levy of 2,000 yen could cool travel demand and reduce GDP by $300 million.
IATA also points out imposing the tax is also against the spirit of International Civil Aviation Organization (ICAO) set guidelines.
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