With the yen weakening, it may not be a surprise that many tourists are flocking to Japan.

However, businesses in Japan are considering implementing a dual pricing system, where foreign visitors may be charged more.

In June 2024, Nikkei Asia reported that Japan's restaurant industry was deploying a two-tiered pricing system in tourist spots.

At what cost?

Speaking to Nikkei Asia, the chairman and president of Watami, a major restaurant chain, said: "Japanese people don't buy 3,000 yen sirloin beef skewers, but tourists to Japan say it's cheap and buy them".

On Jul. 23, Mainichi cited businesses and entities that argued for the dual pricing system as it would be carried out of "urgent necessity" due to rising labour and other costs.

One restaurant owner added that the restaurant had to increase wages to hire English-speaking staff and there are costs in training them to serve foreign customers.

"I think imposing the extra costs created by foreign tourists onto locals would be unfair," said the owner when asked about raising the overall menu prices at his restaurant.

Himeji Castle, a UNESCO World Heritage Site, is also considering a separate charge for foreign tourists.

Currently, one adult admission ticket costs 1,000 yen, which is S$$8.74.

According to NHK, Himeji Castle had 1.48 million visitors last fiscal year, of which 30 percent were foreigners.

However, the Himeji Mayor pointed out that the castle's upkeep and preservation costs are high, including materials, repairs, specialised craftspeople, and the need to fortify its earthquake resistance.

"It would be acceptable to at least make a slight difference in fees between children, the elderly and those who come for sightseeing," 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 about offering a discount to domestic customers, rather than raising the price for foreign tourists. So far, our customers understand the dual pricing, and there have been no major problems."

NHK also reported that a restaurant in Hiroshima had designated Friday night as "Prefectural Citizens' Day", where only locals and repeat customers are accepted.

This comes after an increase in foreign diners, who account for more than 80 percent of turnover, making it difficult for locals to get seats.

"Our restaurant didn't initially set out to target tourists. We want to create a place that locals can enjoy also. I don't think inbound tourism will last forever," said the owner of the Hiroshima restaurant.

Experts warning

However, tourism policy expert Sataki Yoshihiro told NHK that careful consideration is needed when attractions like Himeji Castle review its prices.

"Some people argue that it is not fair to have a difference in fees on the basis of nationality, especially when Japan is promoting inbound tourism," said Sataki.

"If there is to be a difference in fees, the reason should be clearly explained. It won't be accepted unless more service or value is provided for foreigners. There shouldn't be a higher fee just because a customer is a foreigner."

Top photo via Unsplash