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Navigating Dual Pricing: Balancing Cost and Value in Japan’s Tourism Industry
A Sudden Shift in Japan’s Tourism Dynamics
As the Japanese yen hits a 35-year low at 155 JPY to 1 USD, Japan has emerged as a favorite destination for international tourists due to perceived affordability. However, this influx has led to significant challenges, including labor shortages in the hospitality sector and the phenomenon of ‘tourist pollution’ at popular sites. Some businesses have adopted a dual pricing system, offering services that add value specifically for foreign tourists, a strategy that carries both potential benefits and risks.
The Rise of Dual Pricing in Japan
The dual pricing system has become more visible in Japan, driven by the need to manage increasing tourist numbers while maintaining service quality. For instance, Yoshinoya, a popular beef bowl chain, has selectively introduced menus targeted at foreign tourists in 100 of its 1225 outlets nationwide. These menus feature items like eel rice bowls at higher price points, reflecting a tailored approach to meet diverse culinary preferences and spending behaviors of tourists from different regions.
