Japan considers dual pricing system, higher prices for tourists amid strong tourism growth – Mothership.SG

With the yen weakening, it is perhaps not surprising that many tourists are flocking to Japan.

However, Japanese companies are considering implementing a dual-pricing system, in which foreign visitors could be charged more.

In June 2024, Nikkei Asia It has been reported that the Japanese restaurant industry is rolling out a two-tier pricing system at tourist spots.

At what price ?

Talk to Nikkei AsiaThe president of Watami, a major restaurant chain, said: “Japanese people don’t buy 3,000 yen beef sirloin skewers, but tourists to Japan say they are cheap and buy them.”

On July 23, Mainichi Companies and entities cited have argued in favor of the dual pricing system because it would be implemented out of “urgent necessity” due to rising labor and other costs.

One restaurant owner added that his restaurant had to increase wages to hire English-speaking staff and there were costs to train them to serve foreign customers.

“I think imposing the additional costs created by foreign tourists on locals would be unfair,” the owner said when asked if he would consider increasing the overall prices of his restaurant’s menus.

Himeji Castle, a UNESCO World Heritage Site, is also considering imposing a separate tax on foreign tourists.

Currently, an adult admission ticket costs 1,000 yen, or S$8.74.

According to NHKHimeji Castle welcomed 1.48 million visitors last fiscal year, 30 percent of whom were foreigners.

However, the mayor of Himeji stressed that the costs of maintaining and preserving the castle are high, especially in terms of materials, repairs, specialized craftsmen and the need to strengthen its resistance to earthquakes.

“It would be acceptable to make at least a slight difference in prices between children, the elderly and those who come for tourism,” he said.

Offer discounts to locals

A restaurant owner in Tokyo shared with NHK that instead of increasing the price for foreigners, the restaurant offers a discount to locals.

The owner said: “I think people are more understanding when it comes to offering a discount to domestic customers, rather than increasing the price for foreign tourists. So far, our customers understand the dual pricing and there have been no major problems.”

NHK It was also reported that a restaurant in Hiroshima had designated Friday evening as “Prefectural Citizens’ Day,” where only locals and regular customers are allowed.

This follows an increase in the number of foreign guests, who account for more than 80% of turnover, making it difficult for locals to get seats.

“Our restaurant was not originally intended for tourists. We want to create a place that will also appeal to locals. I don’t think local tourism will last forever,” said the owner of the Hiroshima restaurant.

Experts’ Warning

However, tourism policy expert Sataki Yoshihiro said NHK that special care is needed when attractions like Himeji Castle consider their prices.

“Some people feel that it is not fair to have a difference in tariffs based on nationality, especially when Japan encourages inbound tourism,” Sataki said.

“If there is to be a price difference, the reason must be clearly explained. It will only be accepted if a service or added value is provided to foreigners. There should not be higher charges just because a customer is foreign.”

Top photo via Unsplash