Tourist vs. local pricing (and where do you draw the line?)

Unless you've been living under a rock, you've probably noticed a lot of discourse lately about tourists behaving badly here. Travel to Japan is hitting record numbers, and that seems to be coinciding with levels of frustration from businesses in certain sectors.

In recent days, there has been talk of certain industries potentially incorporating a "two-tier" payment system for goods or services – one price would be for locals, and one price would be for tourists. People here were surveyed, and apparently around 60% of respondents said they would be happy for tourists to be charged a higher price than locals would be.

Pic Credit: Matthew Buchanan via Unsplash

However, how does a business determine who is a foreigner and who is a local? If you walk into a restaurant and don't look Japanese, would that be enough to be charged a higher price? Will it be based on Japanese language comprehension? There are plenty of Japanese citizens, permanent residents, and visa holders with the ability to live here that may not look "stereotypically Japanese" – and additionally, there may be visitors to Japan who do speak Japanese well or look ethnically Japanese but not be of Japanese nationality.

I think it's an awkward situation that gets dangerously close to racist behavior. I would understand if Japan did things like increased exit taxes at airports or things like that, but I don't feel good about a system where a bowl of ramen would cost a local 1000 yen, but a tourist 3000 yen. I understand the yen is hitting rock bottom at the moment and that it's enticing travelers to visit, but I don't think a two-tier pricing system is the right answer.