Japanese eateries assert they’re not inflating prices for tourists – rather, they’re just offering locals a more affordable option

Impressive if you can flawlessly speak Japanese and place an order at a Tokyo sushi spot in the heart of the city.

If you can, there’s a good chance that on your next visit to Japan, blending in as a local could help you score a better deal.

Japan has never been known for jacking up prices for foreigners. But a surge in overtourism – driven by pent-up post-Covid travel cravings (aka “revenge travel”) and a weakened yen – is pushing restaurants to consider the idea of differential pricing.

“Some call it discrimination, but it’s incredibly difficult for us to cater to foreign customers, and it’s simply beyond our capabilities,” said Shogo Yonemitsu, owner of Tamatebako, an all-you-can-eat seafood grill in Shibuya, Tokyo’s lively shopping district.

“We require (this pricing structure) for financial reasons,” Yonemitsu explained.

Japan fully reopened in the fall of 2022, after lifting pandemic-related travel restrictions.

This year, fueled by a weakened yen, which has dropped to its lowest point against the dollar in decades, tourists have returned – in large numbers.

Visitor numbers to Japan reached a record 17.78 million in the first half of 2024, according to government statistics – and they’re on track to surpass the country’s 2019 record of 31.88 million tourists.

In response, various regions across the country have started imposing tourist taxes, setting visitor limits, and even banning alcohol sales in an effort to mitigate the impact of over-tourism.

Earlier this year, a resort town at the base of Mount Fuji installed a massive net to block the view of the famed peak after tourists overwhelmed a popular photo spot, creating litter and traffic congestion.

Meanwhile, tourism officials in Hokkaido, Japan’s northernmost prefecture known for its breathtaking landscapes and ski resorts, have recently called on businesses to offer lower prices for local residents.

A mayor in western Japan announced he was considering charging foreign tourists over six times the local entry fee to the UNESCO World Heritage site, Himeji Castle.

Elisa Chan, associate director at the Chinese University of Hong Kong’s hospitality research center, stated that differential pricing can be a powerful tool to address the challenges of overtourism.

“The owner may need to ensure that the sudden spike in tourist demand doesn’t alienate its loyal local customers. Charging tourists higher prices could be a way to address this,” she explained.

Yonemitsu, the restaurant owner, pointed out that the surge in tourist traffic is not just about adding more tables.

He mentioned that his seafood grill had to recruit extra English-speaking staff to take orders, manage reservations, and assist tourists with everything from distinguishing sashimi from grilled items to storing their luggage. Failing to do so leads to “chaos,” he said.

“Some people say, ‘We don’t do this in our country.’ But consider how limited Japanese people’s English skills are. We’re not at the level where we can call ourselves a tourism powerhouse yet. We just can’t speak English well, and yet we can’t afford to make mistakes. It’s incredibly stressful,” he explained.

While differential pricing is a new concept in Japan, it’s already a common practice in many other parts of the world. Since local prices are often listed in the native language, foreign tourists might not even realize they’ve paid more.

In Japan, it’s up to each individual business to decide whether they want to adopt two-tiered pricing. This isn’t always the case elsewhere, as governments may intervene.

In Venice, for instance, local authorities implemented an entry fee for tourists and introduced an online booking system to manage the impact of overtourism.

Meanwhile, some Japanese entrepreneurs are finding innovative ways to adapt.

Australian traveler Phoebe Lee shared that she spent less on her recent two-week trip to Japan compared to previous visits – and she wouldn’t mind paying a bit more if the weak yen is making life harder for locals.

“This helps local businesses continue to provide us lucky tourists with unforgettable experiences and keep Japan’s cultural gems alive, such as small family-owned restaurants or traditional ryokans (Japanese inns),” she said.