Plan your trip · 04

Money & budget

With the yen near historic lows against the pound, Japan is better value than its reputation suggests. Hotels are the big cost; food and transport are cheaper than in London.

Facts checked October 2026

Exchange rate
£1 ≈ ¥210 (early Oct 2026)
Mid-range day
¥15,000–25,000 (£70–120)
Cashless share
58% of spending — still carry cash
Tipping
Not expected

The yen and the pound

The Bank of England's rate on 6 October 2026 was £1 = ¥209.9; over the past year it has moved between about ¥200 and ¥219. For quick sums, ¥1,000 is a little under £5 and ¥10,000 is about £48. Pound figures on this site use £1 = ¥210 and are rounded.

What a day costs

Per person, per day, sharing a room, excluding long-distance trains and flights:

StyleYenPoundsWhat it looks like
Budget¥8,000–11,000£38–52Hostel or capsule hotel, convenience-store breakfasts, ramen and set-meal lunches, free shrines and parks
Mid-range¥15,000–25,000£70–120Business hotel or small design hotel, sit-down dinners, a couple of paid sights a day
Comfort / luxury¥40,000+£190+International hotels, a night in a ryokan with dinner, tasting menus, private guides

Hotel prices swing hard with the season: cherry-blossom weeks, Golden Week (late April–early May), Obon (mid-August) and autumn-leaf weekends in Kyoto can double a room rate. Book those dates months ahead.

Typical prices

ItemTypical price
Rice ball (onigiri) from a convenience store¥150–250
Bowl of ramen¥1,000–1,500
Set lunch (teishoku)¥900–1,500
Conveyor-belt sushi, per plate¥120–400
Coffee in a café¥400–700
Draught beer in an izakaya¥500–800
Temple or garden entry¥300–1,000
Tokyo subway, 24-hour ticket¥1,000

Cards or cash?

Card payment has spread fast: Japan's trade ministry counted 58% of consumer spending as cashless in 2025. Hotels, department stores, chain restaurants, convenience stores and stations all take Visa and Mastercard, and contactless is common. But you still need cash for:

  • temple and shrine entry, offerings and goshuin stamp books;
  • small family restaurants, food stalls and market stands;
  • rural buses, coin lockers and some ticket machines;
  • many ryokan and guesthouses in the countryside.

Carrying ¥10,000–20,000 at a time is plenty. Japan is very safe, and nobody will look twice at a ¥10,000 note.

Two ways to save on fees

Use a card with no foreign transaction fees, and when a terminal or ATM offers to charge you in pounds, always choose yen — the "convenient" conversion comes with a worse rate.

ATMs that take UK cards

  • 7-Eleven (Seven Bank) — in almost every 7-Eleven, open 24 hours, English menus, up to ¥100,000 per withdrawal. Seven Bank adds a small fee on some cards (around ¥110–220), on top of whatever your bank charges.
  • Japan Post Bank — at post offices, including rural ones; shorter opening hours and a lower per-withdrawal limit.
  • Airports have both. Withdraw on arrival rather than changing pounds in the UK.

Tax-free shopping: the new refund system

Visitors don't pay Japan's 10% consumption tax (8% on food) on goods they take home. From 1 November 2026 the way you claim it changes, with no overlap period:

  1. Pay full price in the shop, tax included, and show your passport. The minimum is still ¥5,000 before tax, per shop, per day.
  2. Get your purchases confirmed by customs when you leave, within 90 days of buying. Do it in the departure lobby before you check in your bags — at a passport-scanning terminal, or through Visit Japan Web at Narita, Haneda, Kansai, Chubu, New Chitose, Fukuoka and Naha. A green result means go to check-in; red means a customs officer wants to see the goods.
  3. The shop, or its refund agent, then pays the tax back — by card, bank transfer, app or cash at the airport, depending on the shop. Ask how they refund when you buy; some deduct a handling fee.

The refund comes to about 9.1% of the price you paid (about 7.4% for food and non-alcoholic drinks, which are taxed at 8%; alcohol counts at the full rate). Sealed bags and the old split between "general" and "consumable" goods are gone — but if you open, use or eat any item from a purchase before customs sees it, the whole purchase on that receipt loses its refund, not just that item. Keep snacks on a separate receipt from anything expensive. Purchases made up to 31 October 2026 still use the old instant exemption at the till.

Hotel taxes

Several cities charge a tax per person per night, usually added at check-in rather than included in the booking price. Kyoto's rose steeply in March 2026.

PlaceRate per person per night
Kyoto (from 1 March 2026)¥200 under ¥6,000 · ¥400 for ¥6,000–19,999 · ¥1,000 for ¥20,000–49,999 · ¥4,000 for ¥50,000–99,999 · ¥10,000 from ¥100,000 (room-only rate)
Osaka (from 1 September 2025)None under ¥5,000 · ¥200 for ¥5,000–14,999 · ¥400 for ¥15,000–19,999 · ¥500 from ¥20,000
Tokyo¥100 for ¥10,000–14,999 · ¥200 from ¥15,000. Due to change to 3% on rates above ¥13,000 from 1 April 2027.
Hiroshima Prefecture (from 1 April 2026)¥200 on rates from ¥6,000
Hokkaido (from 1 April 2026)¥100–500 depending on the rate; Sapporo and some resort towns such as Kutchan (Niseko) add their own

Other charges to budget for

  • Departure tax: ¥3,000 per person since July 2026, already included in your air fare.
  • Miyajima visitor tax: ¥100, added to the ferry fare.
  • Mt Fuji climbing fee: ¥4,000 per climber on every trail in the July–September season.
  • Himeji Castle: ¥2,500 for anyone who doesn't live in Himeji (under-18s free).

Tipping

Don't. Tipping isn't part of Japanese culture, and leaving money on the table usually means a waiter chasing you down the street to return it. Good service is simply the standard. The rare exceptions: at a high-end ryokan or with a private guide you can give a small gift of cash in an envelope, but it is never expected.

Official sources