The government has proposed legislation setting rules on the practice of renting out private lodging (minpaku) to tourists. The measure is designed to respond to a sharp increase in the number of inbound tourists by accommodating them in private residences, while preventing potential troubles involving lodgers, owners and neighbors. Local governments, which will oversee minpaku businesses in their areas, need to make adequate preparations to ensure the industry will expand in a healthy manner.
The number of inbound visitors continues to rise — from 13.4 million in 2014 to 19.7 million in 2015 and to 24 million last year. The government has set new goals of welcoming 40 million tourists in 2020 — when Tokyo hosts the Summer Olympic and Paralympic Games — and 60 million in 2030. However, a shortage of accommodation capacity poses an acute problem, particularly in popular destinations such as Tokyo, Kyoto and Osaka, where room occupancy rates at city hotels exceeds 80 percent. The use of private residences to provide lodging for tourists is seen as a solution, but problems have surfaced in the rapidly expanding practice.
People are now allowed to offer their residences as fee-charging accommodation facilities for visitors if they pass screening and get permission to engage in budget hotel business under the Hotel Business Law. But a Health, Labor and Welfare Ministry survey of some 15,000 residences covered by websites that provide minpaku information found that only 17 percent of the owners of such residences obtained permission under the law and 31 percent were found to be running the accommodation business without permission (the survey was unable to identify the remaining residences). Hurdles for obtaining the permission are rather high. For example, the houses and apartments to provide lodgings for tourists must in principle must be located outside residential areas. The tight conditions have led many people to engage in minpaku business illegally. Troubles have also been reported over the minpaku business, including complaints over noise and garbage disposal.