There is a gradual shift towards a dual-pricing system, with foreigners overcharged with the Japanese nationals and residents. In light of the COVID-19 outbreak slowing down, the number of foreign tourists replenished many sites and restaurants in the country.
Recent exchange rate reforms in the view of the yen market have led into a depreciated yen, thereby making Japan an affordable tourist destination to many. Hence, the problem of different price tags in different regions has seen some organizations offer high prices to the international tourist compared to the local ones.
These businesses need to effectively communicate their proposition as to why they are charging different prices, this something that industry players, argue, have not effectively done.
Dual Pricing System in Japan: A New Trend for Foreign Tourists
In the Shibuya Ward in Tokyo, an area that is popular with foreigners, a new type of seafood and barbecue buffet called Tamatebako was started in April.
Being aimed at both Japanese customers and the tourists, the offered cuisine at Tamatebako is based on seafood and includes loads of delicious treats.
A Taiwanese man, 32, who visited the restaurant was amused by the foods that were served to him with instructions being given in English to eat scallops on the grill and enjoying the sashimi salmon.
Tamatebako’s weekday lunch and dinner specials are approximately 60 items as an all-you-can-eat course which is served with tuna and ikura, salmon eggs. However, the pricing differs based on the customer’s nationality or residency status:However, the pricing differs based on the customer’s nationality or residency status:
- Foreign Tourists:
- Weekday Lunch: ¥7,678 (inclusive of tax)
- Dinner: ¥8,778 (inclusive of tax)
- Japanese Nationals and Foreign Residents:
- Receive a discount of ¥1,100 on the above prices.
This pricing structure hence results in a differentiation criterion between the two factions of tourists and the local people. Notably, the restaurant has not come out clearly on why this price differentiation between the two styles of food has been effected.
Implications and Industry Reaction
The introduction of such a pricing system encapsulates the existent surge in Japan of companies adopting different prices to foreign visitors. It has raised controversies among the professionals in the industry as well as the consumers, thus inducing the importance of the policy in the open revelation of prices. Especially in a country that is well known for its qualities of hospitality and fairness.
For the purpose of recognizing foreigners, Tamatebako’s employees value the way clients are able to communicate in Japanese or their resident cards at the entrance.
The company always makes sure that one quarter of its workers can speak English, since about 20% of its customers are international visitors. This language proficiency enables waiters and waitresses to direct foreign tourists around the buffet and teach them the right manner of grilling.
Key Takeaways
- Dual Pricing System: A growing trend in Japan where foreigners are charged more than locals.
- Economic Context: The yen’s depreciation has made Japan more affordable for international tourists, prompting businesses to adjust prices.
- Industry and Customer Concerns: Emphasis on the need for clear and transparent explanations for differential pricing.
- Specific Example: Tamatebako restaurant in Shibuya implements a two-tier pricing system for its buffet offerings.
- Operational Strategy: Language assessment and residence card checks to identify foreign tourists; English-speaking staff to assist international visitors.
This preference for two-tier pricing addresses highly intricate issues such as equity, openness and economic viability, which are vital for sustaining Japan’s good name with regard to outstanding services.
