Japan’s Restaurant Prices Surge Amid Tourist Boom: Two-Tier Pricing Sparks Debate

About 17.4 million people have visited Japan in the past 6 months of 2024

The restaurant prices in Japan are soaring up with the increase in the number of tourists and hence the question arises, how much are visitors to Japan willing to pay for a bowl of noodles or a helping of sushi? Although the question is no longer rhetorical. 

A famous ski resort in Hokkaido called Niseko, crab ramen cost up to 3,800 yen ($24.68) and katsu curry up to 3,200 yen ($20.78) – around three times as much as in nearby Sapporo, one of the culinary hubs.

A bowl of rice that is topped with sashimi is priced at 7000 ($45.56) in Senyaku Benrai, a restaurant in Tokyo in an area close to the largest seafood market. The prices are said to be five times more than what the locals expected. 

The street stalls in many neighborhoods like Tokyo’s Tsukiji Market, Kyoto’s Nishiki Market and Osaka’s Dotonbori  are equally surprised with the increased rates and soaring prices. 

About 17.4 million people have visited Japan in the past 6 months of 2024. According to the Japan National Tourism Organization (JNTO) this number has surpassed the previous record of 16.63 million people in 2019. 

The rise in arrivals has been fueled in part by the yen’s falling value versus the dollar, which is trading near a 40-year low. As a result, travelers are not always put off by restaurant charges that are comparable to what they would pay for lower-quality meals at home.

The fear of locals abandoning some restaurants made them decide on limiting the price hike to non-residents only. A seafood restaurant in Tokyo’s Shibuya neighborhood, Tamateboko recently introduced a two tier pricing system. This new pricing structure offers a 1000 yen ($6.49) discount to all the Japanese citizens and the local residents of Japan. 

A weekday lunch costs 5,478 yen ($35.58) for citizens and residents, and 6,578 yen ($42.72) for foreign travelers.

While it is not uncommon for restaurants to charge separate prices for their Japanese and English menus, Tamateboko’s choice sparked intense debate about two-tiered pricing in Japan’s hospitality industry.

Kumi Kato, a tourism lecturer at Wakayama University in Japan’s southern Kansai region, expressed concern about the trend’s optics, warning against discriminating regulations.

While tourism industry experts agree Japan should take advantage of the growing purchasing power of foreign visitors, some are skeptical that two-tiered pricing is the best way to do so.

The founder of a boutique hotel, Andres Zuleta said that he supports Japan’s ways of ethical and creative plans to monetize the boom in tourism. Simultaneously, he also feels that businesses that charge different prices on the basis of nationality are most likely to create resentment. 

“Discounted pricing for locals could make sense, but having different prices on an English menu versus a Japanese menu is bound to leave a bad impression on the tourists. The idea of tiered pricing appears to be more appealing for (tourist) sites.

Andrew William is the founder of the Kyoto-tour company who said that it is understandable for businesses to charge higher prices to foreigners that they would expect to pay at home when they are making bookings from overseas, it is riskier doing so in Japan. 

“A sign with a two-tiered pricing would look very bad,” William, whose tour company specializes in off-the-beaten-track tours of Kyoto’s ancient spiritual sites and gardens. “Plus, are locals going to have to show their ID everywhere they go? Maybe that isn’t so bad, but it seems awkward.”

Hideyasu Kiyomoto, the mayor of Himeji City, recently proposed charging foreign tourists up to four times the regular admission fee to visit Himeji Castle, Japan’s first UNESCO World Heritage Site.