Nearly 20 million foreign tourists visited Japan in 2015, already approaching the 2020 goal. This 47% year-on-year increase has been a revelation to Japan, making citizens and business owners keenly aware that Japan needs to gear up for continued growth, particularly as we get closer to the opening ceremonies of the 2020 Tokyo Olympic Games.
According to this article, the ability for Tokyo to accommodate this sudden influx of foreign tourists has been strained by the supply of hotel rooms. The room shortage is compounded by the weak yen, which results in more Japanese taking vacations within Japan as opposed to overseas. Occupancy rates at hotels in Tokyo and Osaka are routinely over 80%, and sometimes over 90%.
So into the breach steps Airbnb, a peer-to-peer business that connects travelers with individuals who want to open their homes, or a room in their home for rent. Airbnb has exploded worldwide as travelers seek greater choice of accommodations, as well as the possible added experience of personalized service and comfort by the owner. It was once thought that Japan, and its particular sensitivity to privacy, would be a bad fit for an Airbnb model. But Airbnb Japan’s business has grown 529% since last year, while the number of listings in this country has also jumped year on year 373%.
And this is for a business that is essentially illegal, as Japan’s Hotel Business Law includes taxation of officially recognized accommodations, as well as various regulations around hygiene and safety, all of which Airbnb hosts have ignored.
But now, Ota Ward, one of the 23 districts that make up Tokyo, is hoping to legitimize the model, opening the door to individuals and families who need the income, want the business, and perhaps enjoy the experience of hosting strangers in their homes. Along with Osaka, the Japanese government will be looking closely at Ota Ward, with the hopes of expanding this model over the coming years.
In an attempt to eliminate such problems, Ota Ward has published rules and screening criteria. They include a requirement that neighbors who live within 10 meters of a rented property be notified in writing before an application is made. The local fire department must also be advised beforehand. Under the ward’s rules, minimum stays are set at six nights and seven days. Guest information such as names, contact numbers and passport numbers must be kept for at least three years. A host must also set up a window to accept complaints from neighbors and be ready to respond in foreign languages in emergencies.
What’s special about Ota Ward? It houses Haneda Airport, the expanding gateway to Asia and the world. Between 1978 and 2010, Haneda was, for all intents and purposes, the airport for domestic flights. But since 2010, it has taken on significant capacity as a port of call for international flights. Haneda is now the third busiest airport in Asia, and fourth in the world.
And let me tell you, as someone who has flown primarily into Narita International Airport, which requires at least another two to three hours of waiting and travel time to just get into downtown Tokyo, I much prefer to fly into Haneda. Tourists will as well. And wouldn’t it be nice to hop into a short taxi ride to your Airbnb accommodation about 10 to 15 minutes away.