In a move that reeks of fiscal nationalism, Japan has announced a quadrupling of visa fees for British travellers. This is the first price hike since 1978, a period of almost half a century. The decision, effective immediately, lifts the cost from the old rate of ¥3,000 (£16) to ¥12,000 (£64).
For a family of four, that is a sudden £256 surcharge on the simple act of visiting. From a market perspective, this is a classic case of demand-supply mismanagement. Japan, still struggling to reflate its economy after decades of deflation, is now creating a tax barrier to tourism.
The timing is curious. The yen is at historic lows against the pound, making Japan cheaper than it has been in years. Yet the government chooses to impose a tariff on the very visitors they should be courting.
This is not just a visa fee hike. It is a signal. Japan is signalling that it prioritises order over growth, regulation over revenue.
For the City of London, it reminds us that capital and people flow towards low-friction jurisdictions. The message is clear: if you make it expensive for British tourists to visit, they will go elsewhere. The market will punish this sort of fiscal myopia.
Bond yields in Tokyo may remain low, but the real cost is in lost consumer spending and forgone economic activity. As an analyst, I see this as a microcosm of Japan's broader problem: a reluctance to embrace the dynamism that globalisation offers. Instead, they opt for administrative revenue extraction.
The British traveller, meanwhile, will factor this added cost into their holiday calculus. A week in Tokyo versus a week in Berlin? The choice just became clearer.
