An increasing number of tourist spots in Japan are charging foreign tourists different rates than locals pay. Some online say the practice amounts to discrimination. But what does Japanese law say?
The rise of two-tier pricing
A record number of tourists continue to stream into Japan. Many are taking advantage of Japan’s weak yen, which makes traveling to Japan both a pleasure and a bargain.
These trends have various businesses – particularly historic sites and other gated attractions – wondering whether to charge two separate sets of prices: a high one for tourists and a “standard” price for residents.
Everyone has different reasons for implementing two-tier pricing. For historic sites, like Himeji Castle in Hyogo Prefecture, the extra revenue controls 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.
The possibility of discrimination in two-tier pricing
Two-tier pricing isn’t new. Various attractions around the world charge foreign tourists more for the pleasure of seeing their sites. Just this year, Paris’s Louvre hiked prices for anyone outside of the European Union.
However, from a human rights perspective, two-tier pricing can be a thorny issue depending on how it’s implemented. How do you tell if someone’s a tourist at a location like a restaurant or a castle, where food or admission is bought on the spot?
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 it discriminatory? A lawyer says…
That raises the question: is two-tier pricing legal under Japanese law, or could it be regarded as a form of discrimination? In particular, is a private business like Junglia in the clear? The Japanese website Bengo4.com asked lawyer Kanda Mansaku, who specializes in consumer law, for his thoughts.
Kanda said that, for the most part, businesses are free to set their pricing as they choose. However, they have to be careful that their actions don’t amount to “unreasonable discrimination.” In particular, a government-run site has to be careful that its actions don’t amount to denying entry to a location considered a “public facility.”
As a private business, Kanda said, 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. However, that’s not the case with Junglia. The site doesn’t show any pricing at all until you click a link to buy tickets. Junglia’s website also automatically redirects anyone on the non-Japanese site to a separate site with the higher ticket prices. (Residents who use the Japanese site to buy tickets must supply a valid address within Japan.)
In short, Kanda concludes, nothing stops businesses in Japan from instituting two-tier pricing – so long as they’re careful with how they market it.
“The onus is on the company to explain its reasons and goals for differences in pricing.”
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Sources
ジャングリア沖縄、訪日外国人はチケット高め 異例の「二重価格」は差別なのか？ネットで賛否も. Bengo4.com
Price hike on non-EU visitors will fund Louvre’s ‘renaissance’, Macron says. France24
