Japan to Introduce Dual-Pricing System: Malaysian Tourists to Pay More from July 2025

Japan is set to introduce a dual-pricing system in July 2025, whereby foreign tourists, including Malaysians, will face higher charges than local residents at major attractions and establishments. This initiative aims to address the challenges of overtourism and generate additional revenue for the enhancement of tourism infrastructure.

Rationale Behind the Dual-Pricing System

The surge in international tourism to Japan has been remarkable, with the country recording its highest-ever foreign tourist arrivals at 36.87 million in 2024. Malaysian visitors contributed significantly to this figure, with 506,800 travellers from Malaysia visiting Japan in the same year.

This influx has led to overcrowded tourist sites and increased strain on local infrastructure. By implementing a two-tier pricing system, Japanese authorities aim to mitigate these issues and ensure the sustainability of popular destinations.

Implementation Examples

One notable example of this pricing strategy is at Junguria Okinawa, a nature-themed park scheduled to open in July. The park plans to charge Japanese citizens JPY6,930 (approximately RM208), while foreign tourists, including Malaysians, will be required to pay JPY8,800 (approximately RM264).

This differential pricing reflects the economic disparities and cost of living differences between locals and international visitors.

Similarly, Tamatebako, a seafood buffet restaurant in Tokyo’s Shibuya Ward, has adopted a dual-pricing approach. Foreign tourists are charged 8,778 yen (approximately RM260) for dinner, whereas Japanese nationals and foreign residents in Japan receive a discount of 1,100 yen (approximately RM32). The restaurant justifies this pricing by citing higher operational costs associated with serving foreign customers, such as the need for English-speaking staff and extended service times.

Debate Over Fairness and Feasibility

The introduction of dual pricing has sparked discussions regarding its fairness and practicality. Critics argue that distinguishing between tourists and local residents may be challenging and could lead to perceptions of discrimination. Concerns have also been raised about the potential negative impact on Japan’s reputation as a hospitable and inclusive destination. A survey conducted by Loyalty Marketing Inc. revealed that approximately 40% of respondents opposed the two-tier system, citing fears of discrimination and potential harm to the country’s image.

Global Context

Dual-pricing systems are not unique to Japan; several countries have implemented similar strategies to balance tourism benefits with local community welfare. For instance, Malaysia has long practiced differential pricing for foreign tourists at various attractions. These measures are often introduced to manage the pressures of overtourism and to fund the maintenance of cultural and natural sites.

‘Dual-pricing’

As Japan prepares to implement the dual-pricing system in July 2025, Malaysian travellers should anticipate higher costs at certain attractions and establishments. While this approach aims to address the challenges posed by increasing tourist numbers and to preserve the quality of local experiences, it also raises important discussions about equity and the visitor experience. Travellers are encouraged to stay informed about these changes and plan their visits accordingly to ensure a smooth and enjoyable experience in Japan.