What You Need to Know About Traveling to Japan Now That Airbnb Laws Are Changing
Now is not the right time for Airbnb’s hosts or tenants in Japan, as the home rental service was recently forced to cancel thousands of already booked and paid reservations in Japan, thanks to a new set of Japanese laws that went into effect in June. 15. Here’s what’s going on there and what you can do if you plan to rent an Airbnb property in Japan in the near future.
New Japanese rules or laws regarding minpaku (private lodging businesses) require hosts across the country to register for new licenses and to follow the new rules that directly affect any bookings scheduled between June 15-19. Basically, if you now had a scheduled rental in Japan, you probably don’t do that anymore. According to Airbnb , the Japanese government was reluctant to give private housing companies much of the grace period, even if they were in the process of registering for a new license:
“Unfortunately, on June 1, the Japanese government made a surprise announcement instructing all hosts without a license number to cancel upcoming reservations that were booked before June 15, even though many of these hosts are actively participating in the registration process or waiting your license “.
Not only were the hosts and guests taken by surprise, but so was Airbnb. The company said the surprise move “contradicts” the Japanese Tourism Agency’s (JTA) guidance given to it earlier, and that JTA is unwilling to negotiate.
In the past few days, thousands of travelers have struggled to find last-minute accommodations for the trips they’ve been planning for months, which is already tricky when you consider traditional Japanese etiquette when booking your accommodation in advance. Fortunately, Airbnb offers stranded travelers several full-value travel vouchers (and then some), 24/7 support, and other inconvenience benefits . They can also get help from the Japan Travel Agency in finding new accommodations.
But these new private housing rules are likely to impact Airbnb after June. Japanese newspaper Nikkei notes that at the beginning of the year, Airbnb had about 62,000 placements in Japan, but now that number has dropped to 13,800, nearly 80%. Some of these lists will come back when hosts finish registering new licenses, but many will not. Hosts fear the new rules will scare off potential guests or make it difficult to make money.
For example, one of the new laws states that landlords can only rent out their private homes for 180 days a year . If a landlord has acquired a home specifically to be rented out all year round, this law potentially cuts his annual income in half and will certainly deter potential tenants from such an undertaking. Takuya Ichikawa, a senior fellow at the Daiwa Research Institute, told the Japan Times that the minpaku market is expected to contract in the short term and that non-professional tenants will have to give up their leases, which goes against the goal of a “sharing economy.” »Business like Airbnb.
But it’s all for the best, says Nobuhiko Hohokabe , a JTA official. Hohokabe said establishing such robust rules would help expand the healthy minpaku business that keeps users safe. And more users are on the way. The number of visitors to Japan has skyrocketed over the past few years, and JTA expects a whopping 40 million foreign tourists by 2020, when the Tokyo Olympics take place.
Current problems, however unpleasant they may be, are supposedly just growing pains. Now rents may be 80% less, but we hope that in the next few months that number will be about 20 or 30% less. “This ‘adaptation period’ is necessary for the long-term potential of the Japanese market,” said Nathan Blecharczyk , Airbnb co-founder and chief security officer . He says the company has no plans to ditch the country, especially in view of the upcoming Olympics:
“… Another 12 million people are expected to visit us. To accommodate all these visitors, they simply cannot build enough hotels. There should be many options. There are 8 million vacant homes in Japan, and this is a waste of assets, so we believe that these homes have huge potential for productive use to accommodate guests, as well as for the local population, so that they can participate in this global tourism industry … “
So what’s a traveler to do? Is your future trip to Japan ruined? Never! First, expect Airbnb to be difficult to find in Japan in the next year or so. Hosts are prohibited from running until they are registered and this will take some time. Even so, expect fewer offers overall, as many homeowners will decide that short-term rentals are no longer worth the hassle.
However, look out for other lodging options available , such as capsule hotels, manga cafes, night buses, business hotels, and more. They give you a lot of money and make a budget trip to Japan more than feasible. Who knows? You might even be able to afford a night or two at a traditional ryokan if you save enough.