Finance

Tipping Around the World

Dan Nicholson

Around the globe, attitudes toward tipping vary greatly. From China to Denmark, each country showcases unique tipping customs reflecting their culture and societal norms. Let's examine the tipping traits of five such countries: Japan, Egypt, China, the United States, and Denmark.

The United States recently stirred conversations around tipping practices as employees at the first-ever unionized Apple Store proposed the idea of accepting tips. This prompted discussions around the escalating tipping culture, as phrases like "guilt tipping" and "tipflation" gain popularity. Though the tipping culture has pervaded worldwide, not all countries have embraced it to the same extent.

In Japan, for example, tipping is virtually non-existent and can even be seen as awkward or embarrassing. The Japanese take pride in their service culture where appreciation is usually expressed through compliments and polite gestures, rather than monetary tips. However, an exception exists at ryokans, the traditional Japanese guesthouses. Here, travelers can leave money for the nakai san (the server) in a decorated envelope, but never hand it over directly.

Egypt follows the practice of baksheesh, a tip or charitable gift, a social norm prevalent in North Africa, Middle East, and South Asia. This practice, seen as part of a broader pay-it-forward system, is not just confined to restaurant workers and taxi drivers but extends to bathroom attendants, door openers, and security personnel. The appropriate amount can range from US$1-2 or E£30-40, which can secure favors and better service.

China, despite its modernity, has held onto the traditional belief of equality, where tipping was once considered taboo and sometimes seen as a bribe. However, the growth of Chinese tourism and the influence of western customs are gradually shifting this mindset. Though not a common practice yet, tipping for exceptional service is becoming acceptable, particularly in larger cities frequented by foreign visitors.

In stark contrast, the United States considers tipping as an integral part of its culture, with an average tip being around 20-25% of the bill. However, the increasing tipping expectations and the emergence of digital tipping options present complications. Although a no-tipping movement is slowly emerging, tipping remains practically mandatory given the sub-minimal hourly wages of service workers.

Denmark, often rated as one of the world's happiest countries, mostly refrains from tipping. The Danish society's egalitarian nature, higher GDP per capita, and a robust welfare system reduce the reliance of service workers on tips. While service is generally included in bills, it's customary to round up the bill in a restaurant as a token gesture. Exceptional service is often rewarded with repeat visits or, less frequently, a monetary tip.

Each country's tipping culture reflects its own societal norms and customs. Therefore, being aware of these norms and respecting them plays a crucial role in global tourism.

Source:

BBC

Dan Nicholson is the author of “Rigging the Game: How to Achieve Financial Certainty, Navigate Risk and Make Money on Your Own Terms,” deemed a best-seller by USA Today and The Wall Street Journal. In addition to founding the award-winning accounting and financial consulting firm Nth Degree CPAs, Dan has created and run multiple small businesses, including Certainty U and the Certified Certainty Advisor program.

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