#Japan #Loketoku #Local Tax #Yoron Town #Yoron

Yoron Town and Loketoku Join Hands for Innovative Hometown Tax System

On October 17, 2025, Yoron Town, located in Kagoshima Prefecture, partnered with Loketoku, a company based in Shibuya, Tokyo, to sign an agreement aimed at promoting a local payment-based hometown tax system. The agreement leverages the innovative mobile application, "Rokefuru", which Loketoku will develop and operate. The app will allow visitors to experience various local attractions—such as tourism, lodging, dining, and marine experiences—while making contributions through hometown taxes directly on the island. This new approach aims to offer immediate returns for donors in the form of local experiences and services.

Overview of the Partnership

This partnership marks a significant shift in how the hometown tax system operates. Traditionally, donors made their contributions online and waited weeks for their rewards to be delivered. The "Rokefuru" application streamlines this process, allowing users to receive rewards on-site immediately when they make a purchase or enjoy an experience.

Excitement surrounds the launch date, set for January 2026, when "Rokefuru" will officially begin operations. This initiative is designed to drive economic revitalization in the region while enhancing the overall quality of tourist experiences.

Local Government Commentary

Yoron Town Mayor Katsuo Tabata expressed enthusiasm about the initiative, stating, “Yoron Town promotes tourism development that leverages the island’s natural beauty and cultural richness. By utilizing the ‘Rokefuru’ app, we aim to connect tourism experiences directly with donations, leading to economic revitalization and sustainable tourism.”

Loketoku’s Vision

Masaki Yanada, the CEO of Loketoku, also shared his excitement about the agreement. He remarked, “This partnership with Yoron Town is an endeavor to create a new model for local payment-based hometown taxes. Visitors will have the opportunity to experience Yoron’s stunning nature, culture, and cuisine while contributing to the community. Together with the people of Yoron, we will co-create a form of donation that connects the island's allure to the future.”

Understanding Local Payment-Based Hometown Taxes

Local payment-based hometown taxes differ from traditional models by enabling donors to physically visit the municipality and directly secure rewards from participating establishments at the moment of their donation. This system not only enhances convenience but also ensures immediate gratification for donors, who receive their rewards without any delays.

Key Features of the System

• - Immediate Gratification: Donation and receipt of rewards happen simultaneously, eliminating waiting periods.
• - Experience-Centric: Far beyond material items, rewards include experiences tied to local food, culture, nature, and craftsmanship.
• - Natural Integration: Visitors engaging in tourism and commerce in Yoron create opportunities for donations, likely increasing participation through organic interaction within the community.
• - Economic Circulation: When participants donate via "Rokefuru", a portion of those funds is routed back to businesses as compensation for the rewards. This leads to a sustainable economic cycle benefiting local enterprises.

Background: Why Yoron Town Chose This Approach

Located at the southern tip of Kagoshima Prefecture, Yoron Town is famous for its stunning coral reefs and the enchanting Hyakuyama Beach, which only appears at low tide. The town's primary industry—tourism—continues to attract both domestic and international visitors throughout the year.

With the hometown tax market having grown to a staggering one trillion yen, there is a visible shift from material returns to experiential offerings. In light of this changing landscape, Yoron Town aims to provide an introduction to "Rokefuru", turning accommodation, dining, and activities into valuable experience-based rewards, creating an economic loop directly benefiting the community.

This system encourages tourists to enjoy their stay while supporting the local economy seamlessly. Similar to a rewarding cycle, donations transform into income for local businesses; consequently, those funds cycle back, nurturing further economic activity.

Expectations for This Initiative

• - Tourism Promotion: Visitors participating in memorable experiences—such as marine sports and local festivals—will transition from being mere tourists to proud supporters of the island through their contributions. This promotes repeat visits and deepens bonds with the community.
• - Immediate Support for Business: The structure will enable hospitality, dining, and experience providers to have their donations translated directly into sales, enhancing overall business resilience.
• - Cultural and Environmental Preservation: Funds generated through donations will further bolster initiatives for preserving local culture and the natural environment, covering everything from traditional arts preservation to beach clean-ups and coral reef conservation.
• - Strengthening Local Identity: By transforming Yoron’s natural beauty and rich culture into experiences, this initiative aims to communicate the essence of the island to a national audience.

In summary, starting January 2026, Yoron Town and Loketoku will implement the "Rokefuru" application, creating a seamless, beneficial experience for tourists who can support the region while enjoying unique offerings. This innovative approach not only promotes tourism but is set to establish a sustainable model for Hometown taxes in remote island communities throughout Japan.