Japan has seen a surge in tourists, and restaurant prices have risen at an uncharacteristic rate.
Some dishes are three or five times the price of normal in popular tourist destinations such as Niseko, Tokyo and other places.
The trend is a reflection of both economic factors, such as a weaker yen, and the surge in international tourists.
A bowl of crab-flavored ramen in Niseko (a famous ski resort on Hokkaido) can be as expensive as Y=3,800 (20.78 PS), while katsu curries can go up to Y=3,200 (17.50 PS).
The prices in Sapporo are much higher.
Tokyo’s Toyosu Senkyaku Banrai sells a bowl of sashimi-topped rice for almost Y=7,000, or about 38.32 PS. This is five times more than the price in Japan.
In Tokyo’s Tsukiji Market and Kyoto’s Nishiki Market as well as Osaka’s Dotonbori district, street vendors are charging prices that are far above normal.
Tourism Boom and Impact of the Weak Yen
According to Japan National Tourism Organization, the country welcomed 17.8 millions tourists during the first six months of 2024. This is a record that surpasses the 16.63 million recorded in 2019.
The yen is at a record low value against the US dollar. This is why the surge in sales is so high. Businesses have taken advantage of the increased tourist numbers to raise prices. The term “inbound don” is used to refer to overpriced bowls of rice that are targeted at wealthy tourists.
Some restaurants have introduced tiered pricing to appeal to locals as well as tourists.
Tamateboko in Shibuya offers Japanese residents and citizens a discount of Y=1,000 (54.8 PS) at its seafood buffet.
For locals, a weekday lunch will cost Y=5,478 (30.11 PS) and for travelers from abroad Y=6,578 36.16 PS.
While this approach is effective at enhancing tourist spending, it has also sparked a debate over its fairness, and possible discrimination.
Official support for differential pricing
Some Japanese officials are in favor of differential pricing. Hideyasu K. Kiyomoto is the Mayor of Himeji City. He suggested foreign tourists should pay four times more than the normal admission price to Himeji Castle. It’s Japan’s very first UNESCO World Heritage Site.
Hirofumi Yushimura, the Governor of Osaka has expressed interest in adopting an Osaka Castle model similar to that used by Yoshimura.
Hokkaido Tourism Organization head also advocates different prices for locals and tourists.
The extra money could be used to support heritage preservation and training for English-speaking staff.
Japan is not the first country to charge tourists higher fees. Miyajima Island, which has been a part of Japan since October 2023 is now charging a tax on tourists. Mt. Fuji hikers pay Y=2,000 (PS10.96) as an entrance fee since July. Fuji’s popular trail has been charged an entrance fee of Y=2,000 (10.96 PS) since July. Foreign travelers are now subject to a departure tax of Y=1,000 (PS11.96).
Japan must find a balance between ensuring that the quality of an experience is worth the price and maximizing revenue. Japan is a great travel destination. However, the industry must focus on creating happy and unforgettable experiences for visitors.
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