Dual-pricing, commonly seen in developing countries, has now found its way into Japan.
Japan is grappling with an influx of tourists, driven by the weakened yen, prompting a controversial move by some businesses and attractions to implement dual-pricing systems that charge foreign visitors more than locals. This development has raised concerns about potential damage to Japan’s image as a high-end tourist destination.
Dual-pricing, commonly seen in developing countries, has now found its way into Japan. While critics worry about its impact on Japan’s reputation, proponents argue it is a necessary measure to address rising costs associated with catering to an increasing number of tourists.
Shogo Yonemitsu, owner of Tamatebako, a buffet-style seafood restaurant in Tokyo’s Shibuya district, has been vocal about the need for higher charges for foreign visitors. His restaurant charges foreign tourists 7,678 yen (US48, THB 1,792) for a weekday dinner, while locals and resident foreigners pay 1,100 yen less. Yonemitsu cites the need for English-speaking staff and the additional time required to assist foreign customers as justifications for the higher price.
Yonemitsu insists that this pricing strategy is also about retaining local customers, who make up 80% of his clientele. “Imposing the extra costs created by foreign tourists onto locals would be unfair,” he argues.
This sentiment is echoed by a Japanese woman working at a Thai restaurant in Tokyo. She believes the dual-pricing system is reasonable given the weak yen, drawing parallels to similar practices in Thailand’s temples.
Popular tourist spots are also considering higher fees for foreigners to cover maintenance and refurbishment costs. The mayor of Himeji has proposed quadrupling entry fees for foreign visitors to Himeji Castle, a UNESCO World Heritage site, from the current 1,000 yen to around £23, while maintaining a lower fee for residents. The Osaka prefectural government is discussing a tourist tax for foreigners to fund measures for managing the surge in tourists, potentially starting with the World Exposition in 2025.
Experts warn that businesses adopting dual-pricing must clearly communicate their reasons and ensure the additional costs are justified by enhanced services. Tomoya Umekawa, a tourism policy professor at Kokugakuin University, advises operators to promote special and authentic experiences to justify higher prices for foreigners.
A February survey by Loyalty Marketing Inc. revealed that nearly 60% of respondents in Japan support dual-pricing, though over half expressed concerns about its potential negative impact on inbound tourism. Respondents suggested offering value-added services such as multilingual support, guides, enhanced hospitality, or special gifts to make the higher charges acceptable.
FOOD
A Taste of Thailand’s Monsoon
The monsoon season, a time of rejuvenation and abundance in Thailand, breathes life into the kingdom’s rice fields, vegetable farms, herb gardens, and fruit orchards. To celebrate this vibrant season, The Siam Tea Room at Bangkok Marriott Marquis Queen’s Park presents the “Monsoon Flavours” promotion, offering a culinary journey that captures the essence of Thailand’s rainy season.
>> Read more
Some foreign visitors, like Nick Sakellariou from Sweden, support the idea of charging tourists more during peak times to manage overcrowding. However, Sakellariou also notes that such practices might be deemed discriminatory in his home country.
Other destinations have successfully implemented dual-pricing without significant backlash. For instance, Hawaii’s Diamond Head State Park allows state residents free entry while charging out-of-state and international visitors.
Umekawa believes that Japan’s tourism industry is at a crossroads. He urges businesses to move away from the mindset of keeping prices low and offering identical services to all. Instead, they should focus on providing high-quality, value-added hospitality services that justify the costs and attract repeat visitors.
As Japan navigates this pricing strategy, the challenge lies in balancing fairness, quality service, and maintaining its prestigious image in the global tourism market.
[…] >> Read more […]
Comments are closed.