Go Tokyo Your Experience
As Japan faces a surge in foreign tourists due to post-pandemic travel and the depreciation of the yen, the country is also grappling with the problem of “overtourism.” In response, many establishments have adopted a “dual pricing” strategy, where foreign visitors are charged higher prices than domestic tourists. However, experts argue that unless the reasons for the price differences are clearly explained, this practice will be hard to justify.
In Kyoto, the city is considering charging tourists higher fares for public transportation around popular tourist spots to alleviate congestion. Additionally, some restaurants have been found to have different prices on their English menus compared to their Japanese menus, leading to controversy. While some establishments justify this by citing the increased costs of serving foreign customers, this explanation has not quelled public skepticism.
Recently, a media report highlighted a new yakiniku restaurant in Shibuya where a staff member was explaining ingredients and dining methods to a Taiwanese customer in English. The customer was enjoying a weekday lunch priced at 7,678 yen, allowing access to around 60 all-you-can-eat dishes, including tuna sashimi. However, Japanese customers and residents of Japan receive a 1,100 yen discount for the same meal, effectively implementing dual pricing. The Taiwanese customer, who learned about the restaurant through social media, said, “The price difference isn’t significant, so I don’t mind. The food in Japan is delicious, and the staff is very friendly.”
At this restaurant, staff check if customers speak Japanese or hold a residence card to determine if they are foreign visitors. Since foreign customers make up about 20% of their clientele, the restaurant ensures that one of the four or five staff members on duty can speak English to explain how to select and grill the food. Company president Shogo Yonemitsu stated, “Due to the increased cost and time required to serve foreign customers, leading to higher personnel expenses, we have no choice but to implement differential pricing.”
In a similar vein, Himeji City in Hyogo Prefecture plans to increase ticket prices for foreign tourists to Himeji Castle by four times, sparking considerable debate and opposition. Himeji Mayor Hidehisa Kiyomoto explained at recent international meetings and press conferences that this measure is intended to cover the costs of maintaining and managing the castle, and he hopes the public will understand.
Reactions to these dual pricing strategies vary among local governments and experts. Some officials believe this approach is inappropriate, while others argue that it may be necessary under certain circumstances to cope with the challenges and pressures brought by the rapid increase in tourism. Overall, finding a balance between the development of the tourism industry and the interests of local communities remains a complex issue that requires further discussion and exploration.