Prices rise due to influx of tourists due to low yen… Domestic discontent
A review of a dual pricing system for food and transport for foreigners
Criticism continues for “legal rip-off” and “bad name”
A Japanese broadcast presents food prices in famous tourist destinations. Although it was expensive, at around 26,000 won per beef skewer, the broadcast presented that foreign tourists were willing to buy it. TV Tokyo Biz catch broadcast
As the number of foreign tourists increases due to the prolonged low yen, calls for the introduction of a ‘dual pricing system’ are growing in Japan. The dual pricing system is a system where the same products and services are sold more expensively to foreign tourists and cheaper to domestic tourists. Some transport and restaurants already use a dual pricing system.
According to the Japanese media on the 25th (local time), there is an opinion that a dual pricing system should be introduced in Japan, especially in areas where prices have risen due to the recent increase in foreign tourism. The idea is to set different prices for foreigners and locals, as prices rise due to tourist spending, which hurts even local residents.
On the 14th, Japan’s private TBS highlighted the commercial area near Niseko Ski Resort in Hokkaido, a famous tourist destination. In this place where most foreign tourists come, inflation was severe, with ramen costing 2,000 yen (about 17,600 won) per bowl. TV Tokyo Biz also reported that one high-quality beef skewer costs 3,000 yen (about 26,500 won) at Tsukiji Market in Tokyo. The media reported, “Under these circumstances, it is difficult for Koreans to travel within the country.”
Recently, as the value of the yen has fallen, Japan’s tourism demand and tourist consumption have increased significantly. According to the Japan National Tourism Organization (JNTO), 25,066,100 foreigners visited Japan last year alone. The total amount they spent in Japan was 5.3 trillion yen (about 47 trillion won).
For this reason, the argument that a dual pricing system should be introduced becomes more persuasive. Hisunori Nagayama, vice president of the Japan Ryokan Association, supported the dual pricing system and said, “In Singapore, theme parks, supermarkets, restaurants, etc. implement the dual pricing system by providing discounts to residents.” The method is to set the price high and then give a discount if you present documents proving you are a Korean citizen. A Japanese travel agency also suggested to the Nippon Keizai Shimbun, “It could be considered discrimination if only foreigners receive a high price, so we can raise the price first and provide discount benefits to domestic people.”
Some places already operate a dual pricing system. The commercial area of Niseko Ski Resort was charging double prices. The owner of a food truck operating between Tokyo and Hokkaido told TBS, “(In Tokyo) they sell rice bowls for 1,080 yen (about 9,500 won), but here (the circumstances) are special, so they sell them for 1,500 yen (about 13,200) won). “I’m selling it,” he said. In addition, Japan’s JR Group raised the price of JR rail tickets sold to foreign tourists by about 49 to 77 percent in October last year.
The dual pricing system has been implemented mainly in developing countries where there is a large difference in purchasing power between locals and foreigners. For example, the entry fee to the Taj Mahal in India is only 50 rupees (about 800 won) for locals, but 1,100 rupees (about 17,600 won) for foreigners, a difference of more than 20 times. Nepal and Cambodia operate a dual pricing system at historic sites and buses. However, it is unusual for a dual pricing system to be discussed even in Japan, which has a high economic level.
There are concerns that the tourism industry could take a hit because it effectively discriminates against foreigners. Some Japanese netizens left comments on the news about the dual pricing system, such as “It could easily ruin Japan’s reputation,” and “Wouldn’t we feel bad if we were asked to pay more when we travel abroad?” Korean netizens, who accounted for a quarter of Japanese tourists last year, also criticized it, saying, “It’s double pricing, but it’s the same as legal statements,” and “If prices go up, there is no reason to travel.”
Soohyun Jang Reporter jangsue@hankookilbo.com
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