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SCMP’s Asia desk

On a bustling evening in Tokyo’s Shinjuku district, a handful of coins left behind by an American tourist creates confusion at a popular izakaya.
In a nation where omotenashi – selfless hospitality – is a point of pride, the growing custom of tipping as millions of foreign visitors pour into the country is catching Japan off guard.
“It’s not common to tip for services such as those provided in bars, cafés, restaurants, taxis and hotels,” the Japanese National Tourism Organisation reminds travellers on its official website.
But with Japan welcoming more than 21.5 million overseas visitors in the first half of the year, according to JTB Tourism Research, tipping has begun to take root.

At the beef cutlet restaurant chain Gyukatsu Motomura, staff found themselves at a loss when foreign patrons began offering gratuities, reported Encount.
“There are a lot of foreign customers and especially those from countries with a tipping culture are giving tips,” a company representative told the news site.
The repercussions extend beyond etiquette. In Japan, tips are considered taxable income and must be declared.
In response to the uptick in people leaving money behind, Gyukatsu Motomura last year installed “tip boxes” near the cashier at nearly all 24 of its outlets, streamlining the process and helping employees manage tax obligations.
“In Japan, where there is no tipping culture, employees get confused,” another company official explained to the Asahi Shimbun. “When the restaurant is busy, it’s difficult for staff to respond individually, so we placed the boxes as a solution.”
Collected tips, strictly managed and counted once or twice monthly, are categorised as miscellaneous income and put towards employee benefits. The sum varies, but typically ranges from 20,000 to 30,000 yen (US$135-US$200) per store each month, according to company sources.

‘We really appreciate it’
As tipping becomes more prevalent, technology is adapting to meet demand. Dinii, a cloud-based restaurant management platform, recently launched an option for diners to add a gratuity of up to 25 per cent to their bill, an innovation the industry in Japan has not seen before.
Already in use at more than 900 establishments nationwide, the system is especially popular in tourist hubs such as Tokyo’s Shinjuku and Osaka’s Namba districts, reports the Asahi Shimbun.
For some, the impact is tangible and positive. Takashi Waki, owner of the Osaka-based Yakitori Smith restaurant chain, said tips had been used for staff gatherings.
“It makes our staff feel motivated and creates a lively atmosphere in our restaurants, which we really appreciate,” he told the newspaper.
One waitress told the SoraNews24 news portal that she received 70,000 yen in a single month through the Dinii app.
In Japan, there is a psychological resistance to putting a price on hospitality
Yoshiyuki Ishizaki, professor of tourism marketing
But the wider Japanese public is still wary. “We don’t want tipping culture introduced in Japan,” one local customer complained to the Asahi Shimbun. On social media, others asked: “Is the restaurant taking the money given for the staff?”
While a 1,000-yen tip may seem trivial to a short-term visitor, the cumulative effect could hurt locals already contending with rising costs. Japanese households now spend nearly 30 per cent of their income on food: the highest proportion in 43 years, The Japan Times reported last week.
Some observers argue that the extra income from tips could provide relief for an industry beset by low wages and chronic labour shortages.


The average monthly salary last year in accommodation and food services was just 269,500 yen (US$1,700), the lowest across all sectors, according to the Ministry of Health, Labour and Welfare.
“In Western countries, services are considered something you pay for. In Japan, there is a psychological resistance to putting a price on hospitality, which is understandable,” Yoshiyuki Ishizaki, a professor of tourism marketing at Ritsumeikan University, told the Asahi Shimbun.
He cautioned, however, that labour productivity would not improve if the perception that such services should be free did not change.
“Ideally, businesses should include service costs in their pricing and ensure profits are properly distributed to employees,” he added.


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Foreign tradition of tipping upends Japan’s culture of gracious service

Japanese yen coins. Some restaurants in Japan have started installing “tip boxes”. Photo: AFP

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As foreign tourists pour in, gratuities once seen as an insult are now being embraced by some Japanese businesses


As foreign tourists pour in, gratuities once seen as an insult are now being embraced by some Japanese businesses.


Tourism

Asia travel

Offbeat

Japan National Tourism Organisation (JNTO)

Foreign tradition of tipping upends Japan’s culture of gracious service

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}As foreign tourists pour in, gratuities once seen as an insult are now being embraced by some Japanese businesses

As foreign tourists pour in, gratuities once seen as an insult are now being embraced by some Japanese businesses