Businesses in Japan are considering a dual pricing system for foreign tourists and local people amid a surge in inbound visitors and the continued weakness of the yen.
The head of the Hokkaido Tourism Organization has called on businesses in Japan’s northernmost prefecture, known for its beautiful scenery and winter resorts, to set lower prices for locals.
The organisation is pushing for a trial run for two-tier discounts this autumn, according to the Yomiuri Shimbun newspaper. It cited the head of one Hokkaido hotel operator as saying discounts are needed to ensure Japanese people don’t leave internationally popular resorts such as Niseko.
The mayor of Himeji in western Japan said in June he was considering more than quadrupling entrance fees for foreign tourists at Himeji Castle, a Unesco-registered samurai fortress with parts dating to the 17th century.
The current fee for adults is 1,000 yen ($6.44) but Hideyasu Kiyomoto said he is thinking of setting it about $30 for foreign tourists and $5 for residents.
Kiyomoto cited possible damage to the keep from too many visitors. The castle had 1.48 million visitors in the 2023 financial year, of which 452,300 were from overseas.
A record-high of 17.78 million foreign tourists came to Japan in the first half of this year, with arrivals in June led by travellers from South Korea, China, Taiwan and the US.
Spending by foreign visitors has quintupled over the past decade and is now Japan’s second-largest “export” category after cars, according to the Nikkei newspaper.
Osaka Prefecture has also mooted imposing fees on foreign visitors in order to counter over-tourism, but it has faced opposition ahead of the 2025 Osaka World Exposition.
In addition to student and senior discounts, two-tier systems with discounts for locals have long existed at facilities like hot springs baths supported by municipalities. But applying the concept to foreign tourists remains controversial and rare, with opponents saying it may look like a scam.
In one sign of support for the idea, Loyalty Marketing, operator of a shopping points card, found over 60% in a survey of 1,200 people approved separate prices for foreign tourists.
One establishment has already implemented a two-tier system. Seafood restaurant Tamatebako, which opened in Tokyo in April, charges foreign tourists 7,678 yen ($49.30) for a weekday all you can eat and drink buffet. The price for Japan residents is 6,578 yen ($42.24).
“How can we set the same menu price for local Japanese-speaking people and for foreign tourists, who require special assistance in English?” owner Shogo Yonemitsu was quoted as saying by Kyodo News, adding the costs of attending to tourists are reflected in higher prices.
Japan has been struggling to cope with an influx of tourists since the end of the pandemic. In April, officials announced that a huge barrier would be erected at a popular photo spot to block views of Mount Fuji due to crowds of badly behaved foreign tourists. One local prefecture has also brought in a modest hiking fee to stop ‘bullet climbing’ and address safety concerns on the mountain.
