Dual Pricing for Foreigners in Japan: A Growing Trend in Japanese Tourism

In Japan, amidst the rising trend of inbound tourism, some establishments have begun implementing a "dual pricing" strategy, where foreign tourists and local residents are charged differently for the same services. This practice, while common in many international tourist destinations, is gaining traction in Japan, sparking a debate about its fairness and effectiveness.

A newly opened eatery in Shibuya, Tokyo, which has benefitted from the weak yen attracting foreign visitors, offers a stark example of dual pricing. This restaurant, situated just a three-minute walk from Shibuya Station, offers a seafood buffet that includes fresh local specialties such as Benizuwai crab, raw oysters, and salmon roe. Despite the allure of 60 different dishes, the pricing policy has raised eyebrows: residents of Japan, including Japanese nationals and foreign residents, receive a significant discount, paying 1,100 yen less than tourists for a 90-minute dining session.

The owner, Masatoshi Yonemitsu, explains that the higher prices for tourists reflect the additional service costs involved in catering to guests unfamiliar with local dining customs. Tourists often require more extensive service, from meal explanations to assistance with proper eating techniques, justifying the higher costs imposed on them.

The restaurant also requires foreigners to show a passport or another form of identification to verify their tourist status, a process that adds another layer of complexity and cost to their service. Yet, fluent Japanese speakers, regardless of their nationality, are eligible for the local price, as seen with a group of proficient Chinese tourists who benefited from the local rate during their visit.

While dual pricing is accepted and even expected in many parts of the world—such as reduced or no entrance fees for locals at attractions like Diamond Head in Hawaii or the Pyramids in Egypt—the practice in Japan has its critics and supporters. Some locals see it as a necessary measure to boost the economy, especially during times of economic strain like a weak yen. Others argue that it could alienate international visitors who may feel unfairly targeted by higher prices.