Foreign tourists in Japan can expect to pay more than local visitors – and this is a global trend.
Japan is becoming a popular destination for travel and tourism. European airlines are cutting capacities to the United States, while increasing them to destinations like Japan.
The Yen in Japan is relatively weak for those paying in euros or USD, making Japan a more attractive and affordable destination.
A concept with various names is also becoming evident in Japan. Kamaaina Rates in Hawaii are local only rates; the reduced rates train tickets “German Ticket” by DB are only available to residents, entry fees to the Louvre in Paris have two tiers, locals and tourists, and this trend becomes a reality in Japan.
Tourist and ticket websites show different rates depending on who is looking at it. Users with a resident address in Japan pay less compared to those with a foreign address.
Historic sites, attractions, and even some restaurants or hotels have a two-tier price system.
JNTO – Official Tourism Guide for Japan Travel
Official Japan National Tourism Organization, providing free advice and information to Travelers
Everyone has different reasons for implementing two-tier pricing. For historic sites, such as Himeji Castle in Hyogo Prefecture, the extra revenue helps control traffic and contributes to the site’s upkeep. Locations like Nanzōin Temple in Fukuoka Prefecture use the money to repair the damage caused by a handful of tourists.
And then some companies are just chasing the yen. That’s the case with Okinawa amusement park Junglia, which made headlines last month with prices that were 1,870 yen ($12.60) higher for non-residents. Even some restaurants have been getting in on the action.
Is this discrimination or clever marketing?
Such superficial judgments can lead to a Japanese citizen with a non-Japanese parent being treated like a tourist because they don’t “look Japanese enough.” It can also lead to residents being asked to pay exorbitant prices even if they’ve lived here for years.
Many who generally agree with two-tier pricing note that you can avoid these issues by implementing the difference as a “locals discount.” However, for the most part, locations in Japan seem to take the “if it looks and sounds like a foreigner” approach.
Is two-tier pricing legal under Japanese law, or could it be regarded as a form of discrimination? For the most part, businesses are free to set their own pricing as they see fit. However, they have to be careful that their actions don’t amount to “unreasonable discrimination.” In particular, a government-run site has to be cautious that its actions don’t amount to denying entry to a location considered a “public facility.”
As a private business, a tax attorney explained, Junglia can set whatever price it wants. “So long as the price difference is reasonable, there’s little chance this will be regarded legally as unreasonable discrimination.”
There’s a risk that businesses could violate consumer protection laws if they establish two-tier pricing but heavily advertise the lower price for residents.
