Two-Tier Pricing in Japan: Should Visitors Pay More?

Two-tier pricing in Japan?

These days we’re hearing more and more about it.

But what exactly is this “new” pricing thing? And how prevalent is it?

As I write this note, Japan is experiencing a phenomenon that’s not uncommon in tourist destinations around the world. Some attractions and a handful of restaurants are now charging higher prices for foreign tourists – or, if you will, they are offering “lower” prices to locals.

I don’t defend it, not entirely. But I will say that some aspects of it make sense.

So let’s break it down a bit.

Japan Attractions & Transport: Discount for Locals?

Two places here in the Kansai area of Japan are introducing a two-tiered pricing system. In effect, they are creating an additional surcharge for visitors.

These are Himeji Castle, the UNESCO World Heritage Site in Himeji; and the Kyoto bus network.

Again this info could (and probably will) evolve/change going forward, but for now, it seems that locals will pay a lower price (presumably the price it’s been until now) to enter the castle in Himeji or ride the bus in Kyoto.

Got questions? Me too, quite a few!

How do they define “local”? 

Is it a resident of that city? If so, I’m all for it. That’s not uncommon in other parts of the world. Southern California residents, for example, can get discounted admission to Disneyland, while Hawaii locals can get “Kamaaina rates” at hotels, restaurants and attractions in the islands.

But if “local” ends up being “anyone who looks Japanese,” that’s really going to open up a can of worms, isn’t it?!

I’m cool with a bus pass for Kyoto residents that’s cheaper than what the visitors have to pay. But “visitors” would probably be better defined as anyone who doesn’t live in Kyoto. Otherwise, it’s going to be a shitshow getting on and off the Kyoto buses (which already can be taxing (not financially).

How Visitors to Japan Benefit

Two-tier pricing aside, visitors to Japan enjoy a variety of benefits.

For starters, the government has been subsidizing the Japan Rail Pass for many, many years. It’s a much better deal than Japanese locals can enjoy. Having said that, the rates went up significantly last year, and I don’t always recommend the JR Pass (as it doesn’t cover the fastest of the bullet trains).

Travelers in Japan can also take advantage of tax-free shopping. Whereas Japanese citizens and residents typically pay 10% sales tax, visitors can claim tax refunds on purchases from participating stores across Japan.

Finally, thanks to exchange rates these days, Americans in particular (and visitors from many countries) are benefiting greatly from the weakened yen. Prices for hotels, meals, transportation and attractions are said to be “affordable” to downright “cheap” and “bargains” for many travelers to Japan.

Having also lived in Japan back in the day when the yen was worth double what it is now, that’s a huge contrast!

Tourist Menus & Higher Prices in Restaurants in Japan?

Okay, I want to be very careful not to generalize with regard to this recent phenomenon.

There are reports of some restaurants in Tokyo, Kyoto and elsewhere in Japan – mainly in touristy areas – charging higher prices for tourists… or for foreigners in general.

Again, this raises a lot of questions. And we’ll probably do a more in-depth piece on this soon enough.

But it’s possible that you’ll wander into a restaurant (not somewhere off the beaten path in Japan, mind you, more likely in the hubs of traveler clusters in Tokyo or Osaka/Kyoto) where they hand you an English menu– and charge you higher prices.

To be clear, they shouldn’t be doing this.

It’s one thing to have an English menu and offer some special dishes and add-ons (that don’t appear on the standard Japanese menu) at higher prices.

But charging someone more for the same item based on race or ethnicity is illegal.

If the restaurant claims that they have to hire more staff who speak English, or somehow has “operational factors” driving the tourist price up, let’s call them on their BS.

Sadly, my advice is to note the prices of what you see on the menus (such as the ones on the wall, or on the Japanese menus that you can translate with an app on your phone) – and double-check the bill at the end of the meal.

For now, it seems to be rare.

Japan’s travel scene is evolving pretty quickly these days. Usually for the better.

But when something is happening that you need to know about, we’re here to help.

Until next time, happy travels!