Dual pricing is gaining traction abroad as a way to promote sustainable tourism for locals and foreign visitors, but it often faces backlash in Japan.
Y56EJAVO4ZLHBKBQQDCG54SSU4-min

Himeji City in Hyogo Prefecture once considered introducing higher prices for foreign visitors at Himeji Castle.

The Japanese government has set a goal of attracting 60 million inbound tourists by 2030. To achieve this, dispersing crowds and encouraging visitors to explore rural areas have become key challenges.

As part of these efforts, a dual pricing system has started to emerge at tourist destinations. The system sets different prices for foreign tourists and residents.

Similar systems are already in place at well-known tourist spots abroad. Thailand's Wat Phra Kaew temple, India's Taj Mahal, and national parks in Madagascar have adopted dual pricing. France's Louvre Museum also plans to set a higher price for non-EU citizens starting in 2026.

Foreign visitors to Japan tend to have stronger purchasing power due to the weak yen and Japan's relatively low cost of living. While private companies are embracing the system, public facilities managed by local governments have been more hesitant, citing concerns over fairness.

New Okinawa Theme Park

Nature-based theme park Junglia Okinawa, set to open in July in Okinawa Prefecture, announced a dual-pricing system in January. Admission will be ¥8,800 JPY (about $60 USD) for inbound tourists and the general public, while domestic residents will pay ¥6,930.

According to Katana, the Osaka-based marketing company operating the park, the pricing is "affordable compared to overseas theme parks" and "globally competitive." They expect inbound tourists will understand the rationale behind the difference. This strategy aims to secure revenue and support future expansion plans.

Dual pricing reflects the urgent need to strengthen tourism infrastructure, enhance local facilities, and foster harmony with the local community as inbound tourism grows. The additional fees collected from foreign tourists will be used to fund these improvements.

While slightly different from dual pricing, Osaka Prefecture has proposed a "levy" system, requiring inbound tourists staying within the prefecture to pay a few hundred yen.

Governor Hirofumi Yoshimura emphasized the importance of maintaining local residents' quality of life amid rising tourist numbers. He stressed the need for "mutual prosperity between visitors and locals." Although such measures risk alienating inbound tourists, they could also boost revenue for tourist destinations.

While dual pricing is becoming more common abroad, Japan's Agency for Cultural Affairs has yet to identify any municipal facilities adopting this model.

Tsuyoshi Morioka (center), President and CEO of Katana, at a press conference on November 27, 2023 in Chiyoda-ku, Tokyo. (©Sankei by Keiko Tamura)

Facing Backlash

In June 2024, Mayor Hideyasu Kiyomoto of Himeji City proposed raising prices exclusively for foreign tourists at Himeji Castle, a World Heritage site and National Treasure. However, the plan faced backlash, with critics accusing it of discrimination.

Concerns were also raised about the difficulty of distinguishing between foreign tourists and residents on-site. As a result, the pricing system was revised to differentiate between Himeji City residents and non-residents.

Similarly, Osaka Prefecture's proposed levy received mixed feedback during an expert panel discussion. Members stressed the need for "clear objectives" and "solid justification," ultimately leading to the plan being shelved.

Kazuma Maeda, an economist at Dai-ichi Life Research Institute, noted that tourist spots and infrastructure are funded by taxes, meaning residents shoulder a fair share of the cost. 

"It's reasonable for foreign tourists to bear additional charges," he said, arguing that the extra funds could be a "sustainable source of revenue for tourism-related infrastructure."

Advertisement

Global Examples 

Setting a higher price for foreign tourists still faces accusations of discrimination in Japan. However, it's increasingly seen as an accepted practice worldwide.

Thailand's Wat Phra Kaew, commonly known as the Emerald Temple, charges foreign visitors 500 baht (about $15), while Thai nationals enter for free. India's World Heritage site Taj Mahal charges foreign tourists 1,100 rupees ($13) — 22 times the fee for Indian nationals. France's Louvre Museum is also set to introduce higher fees for non-EU citizens from 2026.

Louvre Museum in Paris, France.

In Madagascar, foreign visitors pay up to 33 times the local fee to enter national parks. A Tokyo-based company employee who lived there until about seven years ago recalled paying higher foreigner rates. She said, "It's only natural that prices differ for locals and tourists," and urged Japan to "move forward with adopting such measures."

Tourist taxes are also becoming more common. Venice, Italy, trialed a tourist tax in April 2024 and capped the number of group tours. The city will continue charging day-trippers €5–10 EUR during peak seasons in 2025.

Hawaii has set a 10.25% accommodation tax since January 2018. The state is now considering adding a $25 "climate impact fee" to tourists' accommodation charges.

Overtourism is a growing concern in many countries, not just in Japan. Sachi Kimura, a senior consultant at the London-based research firm Euromonitor International, stressed the importance of "using tourist taxes to enhance transportation, public services, and local residents' quality of life."

RELATED:

(Read the article in Japanese.)

Author: Keiko Tamura, The Sankei Shimbun

Leave a Reply