September 19, 2024
Japan considers raising prices to counter glut and weak yen

Japan considers raising prices to counter glut and weak yen

Tourists have flocked to Japan to take advantage of the lean, with the latest figures from Japan National Tourism Organization reporting that visitor numbers are surpassing pre-pandemic levels. Last week, JNTO revealed that May saw a 9.6 percent increase in the number of tourists compared to May 2019, marking the third month in a row this year where the number of visitors exceeded 3 million.

Although inbound tourism has contributed significantly to the local economy, with Reuters reporting ¥5 trillion in visitor spending by 2023, some businesses and attractions have struggled to keep up with the numbers. In an effort to offset rising inflation against the weakened yen and ease some of the effects of overcrowding, a number of businesses and attractions have adjusted their prices, while others are considering more controversial solutions.

Here are some examples we’ve seen so far and what this might mean for the cost of tourism in Japan. However, it is worth noting that this hike in prices for tourists is still few and far between, even though talks about this topic have been picking up lately.

the peak of Mount Fuji
Photo: Krisada Wakayabun/Dreamstime

Mt Fuji is limiting the number of visitors and implementing a mandatory fee

Starting this year, Mount Fuji will charge people ¥2,000 to climb the popular Yoshida Trail. This is besides for the voluntary donation of ¥1,000 for conservation and maintenance purposes. Yamanashi Prefecture has also placed a limit on the number of climbers, limiting it to 4,000 people per day.

Some attractions are considering a two-tier ticketing system

In Hyogo, UNESCO World Heritage Himeji Castle is considering a two-tier price for admission. General admission is currently set at ¥1,000 per adult, but the mayor of Himeji is now considering lowering this fee for local residents while raising it for international tourists.

Under the proposed plan, the revised admission price for foreign visitors would cost ¥4,000. This is to supplement the maintenance and storage fees that locals are already paying through taxes.

豊洲 千客万来
Photo: Kisa ToyoshimaToyosu Senkyaku Bandai Complex

Restaurants in high-traffic areas are raising prices

Nadai Fuji Soba, a restaurant chain known for its affordability ¥500 meals, recently changed the menu to feature dishes costing up to ¥2,300. Restaurant manager Shinya Yamamoto told NHK the decision was made to ease some of his staff’s workload in one of Tokyo’s busiest sightseeing districts, where a high turnover rate is required to keep the menu budget-friendly.

Businesses in other areas like the recently opened Toyosu Senkyaku Bandai complex are also charging more premium rates to meet demand, with items like a ¥10,000 bowl of uni rice. However, such prices may also have driven away local clientele.

To retain local customers, others are introducing two-tiered pricing on their menus. ABC News has reported on a restaurant in the lively Shibuya neighborhood where a note at the bottom of the menu explains that Japanese residents will receive a ¥1,000 discount on their total bill.

Osaka may implement a fee for overnight visitors ahead of Expo 2025

According to Kyodo News, Osaka governor Hirofumi Yoshimura is currently in discussions to introduce a flat fee for incoming tourists starting in spring 2025. The proposed fee would apply to tourists who plan to stay overnight in the prefecture.

This is in addition to the current accommodation tax of ¥100 to ¥300 per night for rooms costing over ¥7,000. If the proposal is approved, the fee could be introduced in April next year, just before the Osaka 2025 Expo.

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