Simon wrote:
> Sorry, I'm sure this has been covered many times in the past.
> I'm aware that some people consider the word "gaijin" insulting in some way 
> but I'm not exactly sure why!
> Is this because of the way it's been used in the past rather than the actual 
> meaning of the word?
> How is gaijin different from foreigner as they appear to have the exact same 
> meaning?
> 

People write books on this.

Firstly gaijin is not foreigner, gaikokujin (outside country person) is 
foreigner. Gaijin originally stranger or someone that does not belong, 
it could be the guys from the other side of the hill. As used it means 
non-Japanese and most often a westerner, especially white. Japanese 
travelling to other countries still call the locals gaijin.

As Kuri said it is extremely tiring. People don't seem to understand 
that it might a novelty to them but for us, we are gaijin all the time. 
This is a universal problem not a Japanese one, eg making jokes about 
someones name. Imagine what it is like to be Brad Pitt, "yeah you're 
Brad Pitt", "yes, I know".

Gaikokujin is more polite but the distinction doesn't bother me, more 
importantly there is very little real reason to ever use these words. 
When I open a bank account non-Japanese have certain requirements to 
meet - no problem. But when I walk into a restaurant, I am not 
"gaijin-sama", there are not "4 gaijin-san" in my group. I am 
okyaku-sama and there are "4 okyaku-sama". They might see me as a 
foreigner but that is their perspective not mine, I am a customer of 
their shop.

I was refered to as "ano gaijin" (that gaijin) in a Sydney sushi shop a 
few years ago and tore the waitresse a new arsehole.