Japan's Himeji Castle, a UNESCO World Heritage site and national treasure, has introduced a dual pricing system as of March 1. Local residents pay an admission fee of 1,000 yen (approximately $9.52), while non-residents are charged 2,500 yen (about $23.80). This means that anyone who is not a resident of Himeji, regardless of nationality, must pay 2.5 times the previous fee. The results were immediate: March revenue from ticket sales surged to approximately 270 million yen, doubling from the previous year, but visitor numbers dropped by 15.8% to around 300,000 during March and April.
The implementation of dual pricing is rapidly spreading across tourist sites in Japan. As the influx of visitors has led to issues such as overcrowding, noise, litter, and illegal parking, local governments are seeking to use the increased revenue to fund the preservation of cultural heritage and cover cleaning and security costs. According to the Nihon Keizai Shimbun (Nikkei), the Japanese government is also working on establishing guidelines for this pricing model. In April, the tourism agency held a meeting with experts to investigate municipalities that have adopted dual pricing, with plans to release guidelines soon.
There is a clear reason behind Japan's focus on tourist spending. Last year, spending by foreign visitors reached approximately 9.5 trillion yen, a 16.4% increase from the previous year, surpassing the export value of electronic components, which was 6.6 trillion yen. Tourism has become a significant source of foreign currency for Japan. As the domestic market shrinks due to a declining population, the tourism industry has emerged as a crucial growth driver. However, this has also led to increased inconveniences for local residents. Japan aims to balance rising tourism revenue with reducing these inconveniences through dual pricing.
The key question is how to implement this pricing strategy effectively. Charging foreigners higher fees could lead to accusations of discrimination based on nationality. Therefore, many local governments have opted for a residency-based 'local discount' approach. Himeji City initially proposed raising foreign admission fees to about six times that of residents in 2024 but shifted to this new model after failing to pass the proposal in the city council. This method avoids directly targeting foreigners while effectively increasing costs for tourists.
'Local discounts' are being adopted in various regions. Kagoshima City offered discounts of 100 to 500 yen at 14 facilities last October, while Kitakyushu City introduced discounts of 100 to 200 yen at four facilities, including Kokura Castle, in April. Kyoto City is considering a 'resident priority pricing' system for city buses starting in 2027, which would charge residents and non-residents up to double the fare. If implemented, this would be the first instance of such a pricing model for large bus routes in Japan. The central government is also involved, with the Ministry of Finance suggesting that admission fees for foreign visitors should be set at two to three times the general rate to cover operational costs.
Japan is not alone in experimenting with dual pricing. The Louvre Museum in France, 11 national parks in the United States, and the Trevi Fountain in Italy have all announced plans to charge higher fees for foreign visitors this year. The British Museum, which previously offered free admission, is also considering charging foreign visitors.
Whether the dual pricing strategy will prove beneficial or detrimental remains uncertain. While raising fees can increase revenue, it may also deter visitors, as seen in Himeji, potentially harming what is often referred to as the 'golden goose.' Yuki Haga, a researcher at the Ricoh Economic and Social Research Institute, told Nikkei, "The structure should not exclude foreign tourists but should function as a mechanism to protect tourism resources and sustain local communities." He emphasized the importance of clearly explaining the rationale behind the price differences and how the funds will be used.
In 2025, approximately 9.45 million South Koreans visited Japan, making them the largest group of foreign tourists. Consequently, South Koreans are the most affected by Japan's dual pricing system. Meanwhile, South Korea is also grappling with overtourism in areas like Bukchon Hanok Village and Jeju Island, making Japan's dual pricing experiment a relevant issue for them as well.
* This article has been translated by AI.
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