Has Japan’s Economic Decline Made Dual Pricing the Norm?

Local residents, Japanese tourists, and inbound visitors find ‘triple pricing’ acceptable.

“I was watching the news and information programs during Golden Week and thought to myself that Japan has become poor. Packing cup ramen in suitcases for overseas trips, managing with them for breakfast and lunch, and dining out only in the evenings. When I saw Japanese people slurping cup ramen overseas on the news, my heart ached as I realized how much Japan, which I had longed for, had declined.”

This is spoken by Nishantha, who has lived in Japan for about 40 years and is a professor at Hagoromo International University.

While it is said that the number of overseas travelers during Golden Week has recovered to 90% of pre-COVID levels, many people have been confronted with harsh realities such as having to economize on meal expenses due to the historical weakness of the yen.

Turning attention to Japan domestically, there are establishments at various tourist spots that set prices specifically for foreign tourists, known as “inbound pricing.” A seafood bowl costing nearly 20,000 yen per bowl has sparked discussion, leading to the creation of terms like “inbound bowl.”

For inbound tourists, even a seafood bowl costing over 10,000 yen per bowl must seem like a reasonable price. However, it remains challenging for Japanese people to afford. Amidst this, there has been both support and opposition regarding the practice of setting different prices for Japanese and inbound tourists, known as “dual pricing.”

“In my home country of Sri Lanka, where tourism is a crucial source of foreign currency, dual pricing is commonplace.

Sri Lanka boasts eight UNESCO World Heritage sites, and at popular tourist destinations visited by both foreigners and locals, there are two types of entrance fees—effectively dual pricing. Citizens pay a significantly lower fee while foreigners are charged a higher rate, which can be quite substantial.

When my family visited Sri Lanka in March this year and toured several World Heritage sites, we experienced this firsthand. At Sigiriya Rock, where 80% of visitors are tourists, the entrance fee for foreigners was approximately 5,500 yen when converted to Japanese yen, while for Sri Lankan citizens it was about 60 yen. As a Japanese national who appears Sri Lankan, I paid the local rate without any checks. However, my Japanese wife was charged the foreign rate. The issue arose with our children, who were ultimately judged by appearance, resulting in us paying the foreign rate for all three.”

In Kyoto, where Nishantha currently resides, there are numerous UNESCO World Heritage sites scattered around, totaling 17 locations including 16 temples and shrines plus one castle.

For instance, admission fees are set at 500 yen for Kinkaku-ji and Ginkaku-ji, 400 yen for Kiyomizu-dera, and 600 yen for Byodo-in. None of these UNESCO World Heritage sites in Kyoto have implemented dual pricing for admission fees.

“I think it would be good to have local discounts for Kyoto residents on admission fees and entrance fees for UNESCO World Heritage sites and famous landmarks. Non-Kyoto Japanese tourists would pay the current rates, with an additional charge for inbound tourists, perhaps even implementing triple pricing. Temples could contribute the extra charges back to Kyoto City in the form of taxes or similar.

Kyoto City introduced a lodging tax in 2018. As we approach five years since its implementation, there are discussions about revising the tax rates. Currently, it’s 200 yen for stays under 20,000 yen, 500 yen for stays between 20,000 and 50,000 yen, and 1,000 yen for stays over 50,000 yen. I think it’s acceptable for Japanese nationals and foreign residents in Japan to pay 200 or 500 yen, but I feel it’s okay to charge more for inbound tourists.

Due to concerns over overtourism, Kyoto City is facing a challenging financial situation. It would be desirable for economically capable foreign tourists to contribute to Kyoto City’s financial resources by paying higher admission fees and lodging taxes compared to Japanese nationals.”