"Korean Tourists Should Be Charged Double"... Japan Discusses 'Dual Pricing System'

As the 'weak yen phenomenon,' where the value of the yen declines, prolongs, there are claims that foreign tourists, including Koreans visiting Japan, should pay more than Japanese people when purchasing goods.

According to foreign media on the 25th, recently Hisanori Nagayama, Vice Chairman of the Japan Ryokan Association, stated, "In Singapore, a dual pricing system is operated by offering discounts to residents at theme parks, supermarkets, restaurants, and so on," adding, "Foreign tourists pay more money but enjoy benefits of 'good unfairness' such as fast track access and courteous support."

On the 20th, ahead of the Lunar New Year holiday, Incheon International Airport Terminal 1 is bustling with travelers preparing to depart. Photo by Kang Jin-hyung aymsdream@

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This 'dual pricing system' refers to a pricing policy where foreigners are charged more for the same products. In Japan, showing documents proving domestic residency allows discounts at hotels, restaurants, tourist spots, and the like.

Although the dual pricing system can be perceived as discrimination against foreigners, as the weak yen phenomenon has prolonged, 25,066,100 foreigners visited Japan last year alone, and they have played a role in further raising prices in Japan. This has led to growing dissatisfaction that Japanese people must bear the inflation driven by 'low-cost tourists,' increasing calls for the dual pricing system.

As the yen's value fell in the currency market, demand for tourism in Japan exploded. In early 2022, when the exchange rate was over 1,000 won per 100 yen, it took 10,000 won to eat a 1,000 yen ramen in Japan, but now, with the rate down to 885 won, the same ramen can be eaten for just 8,850 won.

With foreigners able to cover their food, clothing, and shelter costs relatively cheaply during the weak yen period, tourism demand is increasing.

As soaring tourism demand stimulates inflation, the dual pricing system has emerged as a desperate measure. In fact, the Japan Railways (JR) Group raised the price of the JR Rail Pass (7-day) sold to foreign tourists by 69%, from 29,650 yen to 50,000 yen.

Introducing a dual pricing system can reduce the domestic price burden caused by the weak yen, but it also has many side effects. If the perception arises that the same products are sold more expensively to foreigners, Japan's key tourism industry could suffer significant damage.

In particular, Koreans account for more than a quarter of all tourists to Japan, and their backlash is also a concern. The Japan National Tourism Organization (JNTO) reported that 6,950,850 Koreans visited Japan last year.

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