"Are You Korean? Pay More"… Additional Charges for Foreigners Amid Surge in Japanese Tourists

As the prolonged yen depreciation phenomenon causes a surge in foreign tourists in Japan, the Japanese government has announced plans to impose a tourism tax.

On the 6th, Hirofumi Yoshimura, Governor of Osaka Prefecture, Japan, stated, "We will introduce a levy system targeting only foreign tourists." The rationale is to prevent overtourism problems caused by the rapid increase in tourists. Osaka has already been imposing a lodging tax of up to 300 yen per day at local accommodations since 2017, raising concerns about double taxation.

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Within Japan, there is a continuing movement to tax the rapidly increasing number of tourists. Mount Fuji, suffering from the overwhelming number of visitors, has confirmed it will charge a toll of 2,000 yen (approximately 18,000 won) starting this July. Currently, climbers voluntarily pay 1,000 yen (approximately 9,000 won) under the name of the "Mount Fuji Conservation Cooperation Fee," so if all fees are paid, the total cost per person will rise to 3,000 yen (approximately 27,000 won).

Earlier, Hisanori Nagayama, Vice President of the Japan Ryokan Association, advocated for the introduction of a "dual pricing system." This is because the prolonged yen depreciation and the surge in tourists are pushing up prices in Japan. Locally, dissatisfaction is growing over the idea that Japanese people must bear the higher prices caused by "low-cost tourists," increasing calls for a 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 cost 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 enjoyed for only 8,850 won.

The move to tax tourists could reduce the domestic price burden caused by the yen depreciation, but there is also a significant possibility that Japan's key tourism industry will be impacted. In particular, Koreans account for more than a quarter of all tourists to Japan, and their opposition is a concern. According to the Japan National Tourism Organization (JNTO), 857,000 Koreans visited Japan in January this year, marking a record high on a monthly basis. If tourism levies or dual pricing systems are implemented, the travel burden on Koreans, who visit Japan the most, is expected to increase.

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