July 25th, 2024

Japanese restaurants: "not charging tourists more, just charging locals less"

Japanese restaurants are adopting differential pricing, offering discounts to locals while charging tourists standard rates, in response to rising tourism and demand for resources, aiming to balance local needs and economic benefits.

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Japanese restaurants: "not charging tourists more, just charging locals less"

Japanese restaurants are implementing differential pricing strategies, offering discounts to local customers while maintaining standard prices for tourists. This approach has emerged in response to a surge in tourism following the easing of COVID-19 restrictions and a weakened yen, which has made Japan an attractive destination for international visitors. Shogo Yonemitsu, owner of a seafood grill in Tokyo, emphasizes that the pricing is not discriminatory but necessary for operational reasons, as the influx of tourists has increased the demand for English-speaking staff and other resources.

Visitor numbers to Japan reached a record 17.78 million in the first half of 2024, prompting some regions to introduce tourist taxes and visitor caps to manage the impact of overtourism. Experts suggest that differential pricing can help retain local customers while accommodating the growing tourist demand. Some businesses are creatively targeting tourists with premium offerings, such as high-priced ramen dishes.

While this pricing model is relatively new in Japan, it is common in other tourist-heavy regions worldwide. The approach aims to balance the needs of local patrons with the economic benefits of tourism, ensuring that local businesses can thrive amidst the challenges posed by increased visitor numbers.

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Link Icon 8 comments
By @tamimio - 7 months
Instead of looking into a two-tier payment system to try in North America, because I assume that’s the whole purpose of this article, how about copying the Japanese model on tipping? It’s out of hand here; even fast food places like Five Guys and Subway ask for a tip!
By @whalesalad - 7 months
In hawaii this is called a kama'aina discount, been going on forever.
By @AcerbicZero - 7 months
You could always call them just-in-time tariffs? I don't like them personally, but I can certainly understand the desire to incentivize what you like, and disincentivize what you do not.
By @blackeyeblitzar - 7 months
I’ve seen similar schemes that try to take advantage of tourists or otherwise mistreat them, and it always feels discriminatory and negative. I see this the same way. And honestly it won’t serve the Japanese well since they already have a reputation for being rampantly xenophobic
By @JohnFen - 7 months
> He maintains that he doesn’t charge tourists extra. Instead, he offers a 1,000 yen ($6.50) discount to locals.

I've seen businesses in the US use the exact same "logic". It's disingenuous because there's zero logical difference between charging party A more than party B and charging party B less than party A.

> “We need (this pricing system) for cost reasons,” Yonemitsu said.

I understand the practice and genuinely think it's perfectly acceptable. But to explain it in that way is deceptive.

By @uwagar - 7 months
this should be made illegal.
By @coro365 - 7 months
Why not set up a system where travelers who feel they have benefited from the weak yen can voluntarily pay tips? That would be more moderate.