Japan continues to welcome a record number of tourists every month. While that’s filling some business’s coffers, it’s also causing price hikes for ordinary citizens. As a result, a new poll shows that support for a two-tier pricing system is gaining momentum.
70% support a two-tier system
A July poll by Loyal Marketing showed that 69.5 percent of respondents in the teen to 70 age group favored some form of two-tier pricing for tourists. That’s an increase of 11.2 points since the company polled residents in February.
Of the 69.5, 40.2% strongly agreed that a two-tier system should be implemented. The remaining 28.6 mostly agreed. For those who did not support the change, 18.6% somewhat disagreed, while the remaining 11.9% disagreed.
A dramatic shift within all categories reflects a growing tide of support for the two-tier system that previously seemed unsavory to Japanese locals.
Support is not uniform
The responses show there are lots of valid opinions both for and against a two-tier pricing system. Even those who approve of it have differing opinions about when two-tier pricing would be appropriate.
The category with the most support is cultural facilities, which include museums and historical buildings. As many museums and historical buildings are public and maintained to some degree by taxpayers, it makes sense that residents feel others should pay more to experience them. Cultural sites are also location-specific, so a premium for an experience you can’t replicate elsewhere seems understandable.
Perhaps residents also feel they shouldn’t have to pay more for sites that are personally significant to their culture, heritage, or faith. However, two-tier pricing for publicly funded facilities and culturally significant sites is a common practice in other countries as well. India, Thailand, Sri Lanka, and Egypt all use two-tier pricing for their famous historical sites. An existing precedence could be why 55.1% of those polled felt it was an appropriate use of the two-tiered system.
52.9% of those polled favored a two-tier system at nature reserves. Again, these are facilities maintained by tax dollars, so residents may feel they have already paid a premium. Parks, gardens, and zoos are also popular destinations for those with young children. Respondents may have been mindful of keeping those places affordable for residents.
In both cases, a large uptick in visitors will mean an increased need for maintenance and staff, which means higher prices.
Overtourism remains a hot topic
Those who answered in favor of the two-tier system point to the increase in tourism in Japan. A record-high number of visitors has brought an influx of tourist cash but also an increased strain on popular tourist destinations.
High-volume destinations like Tokyo and Kyoto are struggling with overcrowding on trains, buses and at tourist destinations. Kyoto created special bus services to meet demand. The Gion area has blocked off private neighborhoods, with strict fines for trespassers. Additionally, some popular destinations, like Himeji Castle, have already announced support for two-tier pricing.
With fewer Japanese residents going overseas, the majority of tourism within Japan is from local residents. However, they’re now facing fierce competition from overseas tourists. Struggling business owners hoping to boost lagging profits are increasing prices that cash-flush tourists are happy to pay but are out of reach for local residents.
Respondents hoped that a two-tier pricing model would result in Japan being a less desirable travel destination and serve as a deterrent for over-tourism.
Could two-tier pricing damage Japan’s image?
While the Japanese currency has started to recover, the yen remains weak. In July, when this poll was conducted, the yen was 161 yen to one U.S. dollar – a low not seen in decades.
This low yen rate is a boon for visitors with more powerful currencies. Even with eye-watering markups, Japan still feels like a deal.
However, for residents, the reality is much harsher. Wages in Japan remain stagnant. Interest rates and inflation are on the rise. The daily cost of living is also steadily increasing. Plainly put, residents donโt have the same funds for leisure.
Japan prides itself on its polite and superior customer service. Respondents against the two-tier system feel like it will damage this reputation. They believe the system would feel unfair and doesnโt reflect the spirit of โOmotenashiโ or wholeheartedly looking after guests.
Some also stated that it was rude to charge more after tourists traveled far distances to visit. Preserving the “customer is God” view of Japan is a significant source of resistance for those against the two-tier system.
Others who are against the system are concerned about encouraging discrimination, particularly towards foreign residents. A two-tier system could cause foreign residents to have to prove they are indeed residents and not tourists.
Foreign residents are required to carry identification – specifically, their residence card – at all times. However, showing it while trying to enjoy a day out is a burden. The criteria for who looks or is assumed to be a tourist can lean into stereotypes of who is and isn’t Japanese. This could alienate foreign and mixed-race Japanese residents.
Too cumbersome to implement?
Logistical challenges may dictate when and how two-tier pricing becomes a reality. For example, despite garnering media attention, the support for two-tier pricing for transportation and restaurants was surprisingly low. Only 27.8% of those polled were in support of higher prices in restaurants and only 22.7% for transportation.
Considering the logistics and the previously mentioned dangers of discrimination, stress on staff is probably why these are less popular. It would be difficult to ascertain who to apply the system to in busy restaurants. Two-tier taxing for the eat-in corner at convenience stores – which applies to all customers – is already causing distress for both staff and users.
Two-tier pricing on trains would be difficult to implement. With large travel hubs like Shinjuku station accommodating over 2.5 million riders daily, imposing a two-tiered system sounds like a logistical nightmare.
With support rapidly on the rise, it seems those in charge may need to consider issuing guidelines for two-tier pricing that are fair to everyone. And they should probably do it soon.
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Sources
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