An explanation of the current situation and reasons behind the introduction of "dual pricing" at tourist facilities! What kind of system allows inbound tourists and local residents to coexist?

Overtourism Small Talk

Introduction

In recent years, the number of foreign visitors to Japan has increased.OvertourismThese issues have become social problems. In cities like Kyoto and Osaka, there have been a series of incidents involving problems with public transportation and disruptions to the living environment in tourist areas. In this context, the keyword "dual pricing" has attracted considerable attention.

This article provides a detailed explanation of the current state of dual pricing in tourist facilities, its reasons, international examples, and how residents perceive it. For those who question whether this is discriminatory or why prices differ, we present the facts in an easy-to-understand manner.

What was the first facility in Japan to implement dual pricing?

The real deal: "Different rates depending on whether you're a resident or your place of residence"

Dual pricing at tourist facilities is essentially a system where fees are divided between local residents and non-residents/foreigners. While it was previously criticized as leading to discrimination, in recent years, more facilities have adopted it as a measure to create sustainable tourist destinations.

Main Implementation Examples

[1] Himeji Castle – 2.5 times price difference
  • Resident price: 1,000 yen
  • Price for visitors from other regions/foreigners: 2,500 yen
  • Reason: A system to cover the soaring maintenance costs solely with the local residents.
[2] Jandaria Okinawa – Set according to global standards
  • Adult ticket for domestic residents: 6,930 yen (tax included)
  • For those living abroad: 8,800 yen
  • Reason: Overseas commercial facilities sometimes offer special prices for domestic customers.
[3] Kagoshima City-operated facilities – Based on the proportion of beneficiary contributions
  • Resident admission fee: 750 yen (Hirakawa Zoological Park, etc.)
  • Non-resident/out-of-city fee: 1,000 yen
  • Reason: Citizens pay taxes and contribute to the development of facilities.
[4] Tokyo National Museum – High percentage of public funding
  • Related costs will be incurred for multilingual support and guides for foreigners.
  • In the case of national facilities, explaining the implementation is relatively easy.

Why dual pricing?

From an economic standpoint, dual pricing is a rational strategy.

point  Explanation
Difference in willingness to pay  Because foreigners willing to pay a high price to visit and domestic residents who want to keep costs down have different payment intentions, it is possible to maximize profits.
Reflection of additional costs  Inbound tourism-related costs are unique to providing multilingual menus and staff who can speak foreign languages.
Use to alleviate congestion  By using the funds to benefit local residents, it creates a system that supports coexistence rather than conflict.

Dual pricing is not uncommon overseas.

The example of the Egyptian pyramids
  • National rate: 50 Indian Rupees (approximately 80 yen)
  • Foreigner price: 1,100 Indian Rupees (approximately 1,900 yen)
  • Reason: To secure funding for the preservation of historical sites and to create an environment where citizens can easily access their own culture.
Louvre Museum, France
  • EEA residents: 22 euros (approximately 4,000 yen)
  • Residents of other regions: 32 euros (approximately 5,800 yen)
  • Reason: In order to maintain high-quality service, we will keep the current rates the same while raising them in other regions.
Taj Mahal, India
  • National rate: 50 Indian Rupees (approximately 80 yen)
  • Foreigner price: 1,100 Indian Rupees (approximately 1,900 yen)

Key points and precautions for introducing dual pricing.

[Point 1] Clearly indicate how the revenue will be used.

Raising prices simply because someone is a foreigner requires careful consideration from an ethical standpoint. What's important is how the profits are used.

  • Investment to alleviate congestion
  • Infrastructure development (increased parking capacity, multilingual support, etc.)
  • Giving back to local residents

By clearly demonstrating these points, dual pricing functions as a mechanism of "coexistence" rather than "conflict."

[Point 2] Transparent explanations are important.

It is desirable to be able to clearly visualize "why the prices differ."

The case of Baikoken Ramen chain

  • We offer the same menu to both Japanese customers and international tourists.
  • However, the high-priced option (approximately 2,500 yen) is almost exclusively chosen by inbound tourists.
  • Reason: Customers spend about twice as long in the store as Japanese customers, resulting in a lower turnover rate and impacting sales.

By explaining it as a "rational cost reflection" rather than "discrimination," you can gain the trust of your users.

[Point 3] Reasons why public facilities take the lead

Facility type  Public expenditure ratio  Ease of implementation
National Museum  Admission revenue increased tenfold.  Slightly high
art museum  50-60% or more  Slightly high
Private theme park  Low  Somewhat difficult

The government is also considering introducing dual pricing at national museums and art galleries, such as the Tokyo National Museum. They believe that it would be relatively easier to justify the introduction of such pricing in the case of public facilities that receive a budget.

Summary – Japan's Growth Strategy as a Tourism-Oriented Nation

It is also a mechanism for sharing the economic benefits of tourism throughout the region and gaining the understanding and cooperation of residents. While an increase in tourists is welcome news for those involved, it can also be a burden for residents in the form of congestion and deterioration of their living environment. Pricing can play a role in correcting this imbalance.

Economist Yuri Haga emphasizes that "the increase in labor costs due to improvements in services for foreigners alone is sufficient reason to introduce dual pricing." The important thing is to clearly show how the profits will be used.

For Japan, a country heavily reliant on tourism, to achieve further growth, building a sustainable system that satisfies both parties is key. Raising prices simply because someone is a foreigner requires careful consideration from an ethical standpoint.

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