News Dual pricing at Japan restaurants: charging foreign tourists more?

[thomas]

The notion of charging tourists more is not restricted to sightseeing spots but also extends to eateries. I am not sure I like the idea.

The restaurant industry in Japan is grappling with the concept of "two-tiered pricing" in tourist areas. This approach aims to cater to foreign visitors without alienating local customers. For instance, Toyosu Senkyaku Banrai, a dining and leisure facility near Tokyo's Toyosu Market, has already implemented this system. While foreign tourists are willing to spend more lavishly due to the favourable currency exchange rate, some restaurants charge higher prices for dishes like a 10,000 JPY (USD63.56) sea urchin bowl. However, this practice has sparked debate, with some arguing that treating foreign travellers as guests is essential rather than imposing extra costs on them.

"It's my dream to eat a Japanese seafood bowl," said Ma Yingming, who was visiting from Hong Kong on a family trip. "This is too cheap," Ma said while enjoying an 18,000 yen bowl topped with fatty tuna and salmon roe. Restaurant companies are shifting more toward tourists. "Japanese people don't buy 3,000 yen sirloin beef skewers, but tourists to Japan say it's cheap and buy them," said Miki Watanabe, chairman and president of major restaurant chain Watami.

In November, Watami launched a new takeout eatery in Tsukiji, famed for its grilled wagyu beef skewers. The eatery attracts tourists to the historic fish market area. In April, Watami witnessed a 76% surge in sales from international visitors, marking an unprecedented increase. Nonetheless, for restaurants to flourish, they must also appeal to the domestic Japanese market. A notable strategy that has sparked interest is the implementation of dual pricing. Tamatebako, which debuted in April in the bustling Shibuya district, offers a distinct pricing model for locals and tourists. The restaurant features a lavish seafood buffet and grill, where patrons can indulge in an extensive selection of around 60 seafood items and unlimited beverages during weekday evenings. Residents with proof of address enjoy a rate of 5,980 JPY, whereas tourists are charged 6,980 JPY. A visitor from Hong Kong expressed enthusiasm for the restaurant after discovering it online, undeterred by the higher price for tourists. They noted that the cost would be significantly steeper in their home city, emphasizing the value of Tamatebako's dining experience.



Paywall alert:

Japan restaurants explore charging foreign tourists more

Higher prices could help businesses take advantage of weak yen

asia.nikkei.com

 

[Petaris]

I had posted a similar article a while ago. I think charging different amounts to locals and tourists for goods and food is ridiculous and just greedy. If it was for access to a local amenity, like museums, recreation centers, etc, I would be OK with it as they are often either partially or fully funded by the locality via taxes. Food and goods don't have that situation and the result would be pure profit mongering.

 

[Majestic]

All of these schemes are a bit creepy when posited as "charging foreigners more".

Much better to just raise prices and fees across the board, and give a discount to local residents as needed. Otherwise it just becomes a race-based mess, with people trying to figure out who is a real Japanese, and who is a foreigner that deserves to be charged more. If they intend to use residence as a criterion for charging different things, just give a discount to people who show up with a valid ID... everyone else, regardless of ethnicity, pays the full price.

The problem is that the concept of "gaijin" or "gaikokujin" gets baked into these schemes, which immediately causes problems. Are Japanese who live overseas "gaijin"?. Are Koreans born in Japan "gaijin"? What about short-timers, and what about the foreigners who are supposedly welcome to be digital nomads in Japan?

Its just a mess trying to make any scheme into a race-based scheme (not to mention it feels very outdated).

 

[thomas]

Also, I'm afraid that it would boil down to restaurants favouring foreign visitors over residents, simply because for "us locals", an 18,000-JPY kaizen donburi IS NOT CHEAP!

 

[Majestic]

Right.. I hadn't even thought of that. "You two will have to wait... we have several high-paying foreigners coming in later, and the chef has his eye on a Rolex watch".

Or worse - our restaurant no longer caters to locals because we can't pay the bills unless we charge "tourist" prices.

It's not going to go down well. This, and the akiya situation, really hits home the difficulties Japan faces. My head hurts just thinking about it.

 

[mdchachi]

As I said in the other thread, they should offer point cards or other ways for locals to get discounts rather than charging extra for foreigners.

 

[nedkelly]

Dual pricing can only damage Japan's reputation as a tourist destination. It is the sort of thing one would expect in places like China but it is a shock to think it happens in Japan too.

 

[thomas]

Dual pricing remains a hot topic this summer.

Sixty per cent of Japanese surveyed by Loyalty Marketing, an operator of shopping points cards, said they would approve of dual pricing in Japan. Tamatebako, a restaurant that opened in Shibuya in April, already has a dual pricing system in place.

The head of the Hokkaido Tourism Organization has called on businesses in Japan's northernmost prefecture, known for its beautiful scenery and winter resorts, to set lower prices for locals. The organisation is pushing for a trial run for two-tier discounts this autumn, according to the Yomiuri Shimbun newspaper. It cited the head of one Hokkaido hotel operator as saying discounts are needed to ensure Japanese people don't leave internationally popular resorts such as Niseko. The mayor of Himeji in western Japan said in June he was considering more than quadrupling entrance fees for foreign tourists at Himeji Castle, a Unesco-registered samurai fortress with parts dating to the 17th ​century. The current fee for adults is 1,000 yen ($6.44) but Hideyasu Kiyomoto said he is thinking of setting it about $30 for foreign tourists and $5 for residents. Kiyomoto cited possible damage to the keep from too many visitors. The castle had 1.48 million visitors in the 2023 financial year, of which 452,300 were from overseas.

Businesses in Japan consider charging tourists more amid surge in visitors

Record-high 17.78 million foreign tourists came to Japan in the first half of year, with arrivals in June led by travellers from South Korea, China, Taiwan and the US

www.theguardian.com

Tamateboko's decision to implement different prices on its Japanese and English menus sparked widespread international attention and ignited a debate about two-tiered pricing within Japan's hospitality sector. Kumi Kato, a tourism professor at Wakayama University, expressed concern over the potential discriminatory implications of such a policy. She warned that distinguishing between foreign guests invited by Japanese residents and tax-paying foreign residents would be challenging and could lead to unpleasant tensions and discontent. Kato emphasized the importance of exercising caution to avoid such outcomes.

While acknowledging the desire to capitalize on the increased spending power of inbound tourists, industry experts expressed scepticism about two-tiered pricing as a viable strategy. Andres Zuleta, founder of Boutique Japan, suggested that while ethical and creative monetization methods are necessary, charging different prices based on nationality could generate resentment. He proposed that offering discounted local pricing might be more acceptable while implementing tiered pricing at tourist sites could be a more palatable approach.

Stomach grumbles: Japan’s eateries catch heat over higher tourist prices

Some Japanese businesses are charging multiple times their usual prices amid a record influx of tourists.

www.aljazeera.com

Meanwhile, some Japanese restaurant reservation sites have started catering to foreign tourists:

To capitalize on the surge in international tourism, Japanese restaurant reservation platforms are introducing exclusive services and reservation slots. TableCheck, for example, has launched a priority reservation system called FastPass, allowing customers to bypass long queues at popular eateries for a fee. The company aims to expand the number of participating restaurants significantly.

Targeting foreign visitors, TableCheck plans to improve its search function to accommodate users from 35 countries. The platform's data indicates a growing demand for reservation services among time-constrained travellers. While some restaurants charge up to 2,000 yen for FastPass reservations, the service is proving popular, with 20% of current users being international visitors.


Japan's leading restaurant review platform, Tabelog, has significantly expanded its online reservation service targeting foreign visitors. Launched in June 2024, the service now allows bookings at over 35,000 restaurants, a sixfold increase from its previous offerings. Users can now browse and reserve tables in English, Chinese, and Korean, with calendar displays for clear visualization of availability.

To address reservation cancellations, a potential concern for restaurants, Tabelog has implemented a mandatory credit card registration system with a 400 yen service fee per person. Additionally, they are encouraging restaurants to allocate specific slots for international guests. Tabelog is exploring the option of adjustable service fees based on the reserved meal price to cater to diverse needs. The platform aims to introduce table-only reservation options by October, expanding beyond the current full-course meal bookings.


Paywall alert:

Japan restaurant reservation sites start catering to foreign tourists

Services let customers pay to skip lines, reserve tables in other languages

asia.nikkei.com

 

[thomas]

Japan's booming inbound tourism industry, fueled by a weak yen, prompts some businesses to consider "dual pricing" — charging domestic and foreign customers different rates. While this strategy aims to capitalise on the spending power of foreign visitors, concerns are growing about potential negative consequences.

Here's an example of the Shibuya-based seafood buffet restaurant Tamatebako:

Tamatebako has introduced a dual pricing system. The eatery, which opened this April, offers 60 types of seafood and has quickly become a popular spot for locals and tourists. While families of foreign visitors can be seen enjoying crab and scallops, the restaurant charges different prices for domestic and international customers. Male foreign tourists pay 8,778 yen for the weekday dinner buffet, while Japanese and foreign male residents receive a 1,100 yen discount. A similar price difference exists for women. The restaurant determines eligibility based on language proficiency and residency status. So far, the system has operated without incident.

The main reason for introducing dual pricing is the increased costs associated with the rise in foreign tourists. At Tamatebako, where about 20% of customers are foreigners, staff who can speak English are employed. Owner Shogo Yonemitsu, 39, exlains, "Foreign customers take much longer to order and pay, so labor costs are higher. It's only fair to make a distinction in the pricing." At the same time, Yonemitsu says that dual pricing is also a measure to prevent the loss of Japanese customers, saying, "We could set higher prices across the board, but that would give the impression that our restaurant is only catering to foreigners. We also have to consider the risks in the event foreign visitor numbers drop."

However, there is considerable apprehension surrounding the practice of dual pricing. A February survey conducted by Loyalty Marketing Inc., operator of the Ponta Point service, revealed that while approximately 60% of respondents endorsed the implementation of dual pricing, roughly 40% expressed opposition, citing concerns about discriminatory practices and potential harm to Japan's international image.

Sataki Yoshihiro, a tourism policy professor at Josai International University, emphasized the need for public facilities like Himeji Castle to provide compelling justifications if they adopt dual pricing. He cautioned that differentiating between Japanese and foreign tourists in today's interconnected world is increasingly complex and could lead to complexities and problems.

Is 'dual pricing' an answer to overtourism, high local costs? Japan sees mixed reactions - The Mainichi

TOKYO -- As Japan sees high levels of spending by inbound tourists amid the weak yen, some establishments are moving to introduce

mainichi.jp

 

[Majestic]

Oh god... different prices based on nationality AND sex.

 

[mdchachi]

I don't think that's a smart approach. I feel like sending world champion eater Kobayashi to demolish their buffet and pricing model. He could easily eat 100 oysters.

 

[salyavin]

Language proficiency as well, hmm language proficiency is pretty subjective I doubt we would show our JLPT certs. That sounds like a lot of overhead which would just be an excuse for a cash grab.
For restaurants English menus been a long time since I've looked at one but I think they often have pictures and maybe a number so you can just point so it's not like it's so hard for the restaurant staff. If I come in with my wife who is Japanese how does that work?

In my state there is a Railroad museum that gets local tax support, local residents show their ID showing where they live and get a discount. Why don't we just do a discount system for the castle where I assume local taxes help support it. I am down with that for museums, gardens, castles, etc. but not for regular businesses like restaurants.

 

[Majestic]

And speaking of creepy schemes to charge foreigners more...

 

[Ukigumo]

The expression 'biting the hand that feeds them' comes to mind. Once the yen strengthens again and overseas visitors realise they're not really welcome, they will start looking elsewhere for bargain holidays and the rhetoric will change to try and attract visitors back to Japanese shores.