Chip NoVaMac said:
It seems to be very expensive to do Japan (and Tokyo) "right".
We didn't find prices to be noticeable more than what we are used to in Los Angeles. New Yorkers would probably have the same reaction. There are five main expenses for tourists:
1. Transportation. The Japan Rail Pass is your friend there, and we did lots of walking rather than run for a bus or train every time the next place to see was a few blocks away. In Kanazawa we ended up walking the entire length of the city as we moved from one interesting place to the next. Take taxies only as a last resort.
2. Food. Fancy restaurant meals can get expensive if you aren't careful, which is true in most cities. But there are plenty of cheaper meals if you look for vending machine restaurants, noodle stands, and the food places in department stores and train stations. If prices aren't posted, go elsewhere. (We learned to read prices in Japanese so we could check prices even when English prices weren't shown.) Other than the ryokan (where meals are included), we ate at pricier places only twice and we knew what we were getting into. Personally, I can't eat three full restaurant meals in a day (too much food), so we generally had either a real breakfast or a real lunch each day, with small snacks taking the place of the missing meal.
3. Hotels. In Tokyo, you have to pay a lot if you want a great room. So don't. We stayed at the tiniest little business hotel, and other than having to say "excuse me" constantly to get past the other person in the room, we did fine. In other cities, we could get slightly bigger rooms without paying an arm and a leg. Some people stay in youth hostels or other even-cheaper places, but that didn't suit us. Even staying in small places, hotels were our biggest expense.
4. Admissions. Most interesting museums, gardens, temples and shrines charge a few hundred yen for admission, which can add up if you go to lots of them. There's not much you can do about that, unless you want to skip some of them. The only admission that felt outrageous to me was 1600 yen to get into the Hakone Open Air Museum. The cheapest admission was to go inside the big bronze Great Buddha in Kamakura; that was only 10 or 20 yen (I forget which). You can think of a yen as a penny, so that's a dime or two.
5. Souvenirs. A simple rule: don't buy more than you can afford! Nobody actually needs a little glass box with a model of a temple, do they? Yeah, we bought some souvenirs, but we tried not to go overboard. I bought us some hashi (chopstick) holders in the shape of Japanese cranes because they were more elegant than the usual fish and vegetable-shaped ones I normally see. Mrs. Q bought an interesting-shaped ceramic serving dish that she liked. Most of our other purchases were little knickknacks for relatives.
Overall, we came out ok because we saved up for this trip (for years) and planned how to stay within our budget. Despite having to guess, while planning the trip, what our daily expenses would really be, I'm proud to say that after 3 and a half weeks of vacationing we ended up within $20 of our original budget! Then we bought an extra bag of candy at the airport on the way home and our budget went into the red!