It all began with a video uploaded on the 12th to the YouTube channel “CKOONY,” which has 600,000 subscribers. The YouTuber and their group visited a 120-year-old sukiyaki restaurant located along the Kamo River in Kyoto. The menu for foreign customers listed three pieces of sushi at 2,035 yen (about 18,695 won) including tax, and four pieces of Wagyu sushi at 2,625 yen (about 24,115 won).
After the video was released and a flood of one-star reviews poured in on Google, the restaurant flatly denied the allegations, stating, “We apply the same prices to all customers regardless of nationality and do not operate a dual pricing system at all.” They went on to warn, “If false reviews and malicious harassment continue, we will consider legal action, including requesting the disclosure of the poster’s information and seeking damages.”
◇“Local Discounts” at Ramen Shop Kiosks and Buffets… Recurring “Dual Pricing” Controversy
This is not the first such incident at a private business. In January of this year, a famous ramen shop near Osaka’s Namba Station faced backlash after it was revealed that prices varied depending on the language setting of its kiosk. The basic ramen was priced at 950 yen (8,726 won) on the Japanese screen but displayed as 1,500 yen (13,778 won) on the English, Korean, and Chinese screens; the price of chashu ramen varied by nearly double, ranging from 1,350 yen (12,400 won) to 2,200 yen (20,208 won). The owner explained, “The foreign-language menu features a premium version with a larger portion of meat,” adding, “After checking with the Consumer Affairs Agency, we were told this was not illegal.” However, the controversy grew after reviews surfaced claiming that staff encouraged foreign customers who wanted to order in Japanese to place their orders in their native languages instead.
In 2024, a seafood buffet in Shibuya, Tokyo, came under fire for operating a “local discount” that offered a 1,000-yen (9,180 won) discount exclusively to Japanese nationals and foreign residents in Japan. Although it is presented as a discount, the system effectively forces tourists to pay the higher full price.
Unlike the covert dual pricing practices in the private sector, the public sector is openly institutionalizing dual pricing systems. On March 1 of this year, Himeji City in Hyogo Prefecture implemented a dual pricing system for admission to Himeji Castle, a World Heritage Site, setting the fee at 1,000 yen (9,180 won) for residents and 2,500 yen (22,964 won) for non-residents. In the first month of implementation, the number of visitors fell by 16.8% compared to the same month last year, and the number of foreign visitors dropped by 25%; however, admission revenue nearly doubled to approximately 270 million yen (2.48011 billion won).
Kyoto City is taking it a step further and is considering the introduction of a tiered bus fare system. It is currently in discussions with the Ministry of Land, Infrastructure, Transport and Tourism regarding a plan to adjust the city bus fare—currently 230 yen (2,114 won)—to 200 yen (1,838 won) for residents and 350–400 yen (3,217–3,676 won) for non-residents starting in 2027. This is expected to be the first instance of a Japanese local government applying dual pricing for public transportation.
The central government is also taking action. The Agency for Cultural Affairs plans to gradually introduce differential admission fees for foreign visitors at national museums and art galleries across the country, including the Tokyo National Museum and the National Museum of Western Art, by 2030. In addition, starting this month, the departure tax (International Tourism Passenger Tax) has tripled from 1,000 yen (9,190 won) to 3,000 yen (27,570 won) per person, significantly increasing the cost of traveling to Japan.
The Japanese government and local authorities cite tax equity and the need to alleviate overtourism as their justifications. Last year, the number of foreign visitors to Japan reached a record high of 42.68 million, and their spending totaled approximately 9.5 trillion yen—a 16.4% increase from the previous year. The calculation is to channel this spending power into the national treasury, capitalizing on tourist demand that continues to set new records every year.
However, foreign media and tourism scholars are voicing strong criticism, calling it de facto discrimination against foreigners. Another issue cited is that as results like those at Himeji Castle—where “revenue increases even as visitor numbers decline”—have been confirmed, more local governments and businesses have strong incentives to jump on this bandwagon. In particular, as of May of this year, 951,300 South Koreans visited Japan—a 15.2% increase compared to the same month last year—maintaining South Korea’s position as the top source of visitors by country. This suggests that if the dual pricing system spreads nationwide, South Korean tourists will be the first to feel the burden—and the hardest hit.
Some in Japan’s tourism industry are warning that this “could end up killing the goose that lays the golden eggs.” Yoshihiro Sataki, a professor in the Department of Tourism at Saisai International University, criticized the practice in an interview with NHK, stating, “If prices differ, the reason must be clearly explained, and unless foreigners are provided with more services or value, it will not be accepted.” He added, “There should be no charging more simply because the customer is a foreigner.”
