Congratulations to you if you speak perfect Japanese and order food at a neighborhood sushi bar in Tokyo.
If you can, chances are that on your next trip to Japan you can get a better deal by blending in with the locals.
Japan has never been a destination known for raising prices for foreigners. But overtourism—fueled by a combination of pent-up post-Covid demand (aka “revenge travel”) and a weak local currency—has recently prompted the country’s restaurants to consider the benefits of differential pricing.
“People say it’s discrimination, but it’s really difficult for us to serve foreigners, and it’s beyond our capabilities,” said Shogo Yonemitsu, who runs Tamatebako, an all-you-can-eat seafood grill in Shibuya, Tokyo’s bustling shopping district.
He insists he does not charge tourists extra. Instead, he offers a 1,000 yen ($6.50) discount to locals.
“We need (this pricing system) for cost reasons,” Yonemitsu said.
Japan did not fully reopen until fall 2022, after pandemic-related travel restrictions were lifted.
This year, buoyed by the weakness of the yen, which has fallen to its lowest level against the dollar in decades, tourists are back – in large numbers.
Visitor arrivals to Japan hit a record 17.78 million in the first half of 2024, according to government data – on track to break the country’s 2019 record of 31.88 million tourists.
In response, many localities across the country have begun implementing tourism taxes, imposing visitor caps and even banning the sale of alcohol in an attempt to limit the effects of over-tourism.
Earlier this year, a resort at the foot of Mount Fuji erected a giant net to block views of the iconic peak after tourists gathered at a photo vantage point, causing trash and traffic problems.
Meanwhile, tourism authorities in Hokkaido, the country’s northernmost prefecture known for its scenic landscapes and ski resorts, this month urged businesses to set lower prices for locals.
A mayor in western Japan said he is considering charging foreign tourists six times the local price to enter Himeji Castle, a UNESCO world heritage site.
Elisa Chan, associate director of the Hospitality Research Centre at the Chinese University of Hong Kong, said tiered pricing can be an effective way to combat overtourism.
“The owner may want to ensure that the sudden increase in tourist demand does not drive away all his loyal and frequent local customers. Charging tourists more could be considered as a solution to this problem,” she said.
Yonemitsu, the restaurateur, said the influx of tourists is not simply a matter of adding more tables.
He said his seafood restaurant has had to hire extra English-speaking staff to take orders, handle reservations and explain to tourists everything from the difference between sashimi and grilled food to where to drop off their luggage. Failure to do so results in “chaos,” he said.
“Some people say, ‘We don’t do that in our country.’ But think about how bad the Japanese are at English. We haven’t reached the level where we can call ourselves a tourism powerhouse. We just don’t speak English, but we can’t say the wrong thing. It’s really stressful,” he said.
Although this is a new phenomenon in Japan, differential pricing is quite common in other parts of the world. Since the cheapest prices for residents are often listed in the local language, foreign tourists may not realize that they have paid more.
In Japan, it is up to each company to decide for itself whether to implement two-tier pricing. This is not always the case elsewhere, as governments can intervene.
In Venice, for example, authorities have introduced an entry fee to the Italian city and an online booking system to tackle overtourism.
Meanwhile, some Japanese business owners are trying to get creative.
Shuji Miyake, an izakaya (informal pub) owner in Tokyo’s Tsukiji district, offers lobster-topped ramen for 5,500 yen ($35), four times the price of the shrimp noodles his regulars often order. The upscale dish is marketed to tourists, who he says have a bigger budget to try new things.
Australian tourist Phoebe Lee said she spent less on a recent two-week trip to Japan than on previous trips to the country – and would not mind paying a little more if the weak yen made life difficult for locals.
“This helps support local businesses so they can continue to provide incredible experiences for lucky visitors and preserve important elements of Japanese culture, such as small family-run restaurants or authentic ryokans (traditional inns),” she said.
CNN’s Junko Ogura contributed reporting.
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