Some 2,700 Applications Filed for “Minpaku” Lodging Biz under New Law

June 14, 2018

Tokyo- The number of applications to conduct "minpaku" lodging business under a new Japanese law totaled 2,707 as of a week before the minpaku law goes into effect on Friday, according to Japan Tourism Agency officials.

The total was far fewer than had been expected, given that tens of thousands of private housing units across the country are thought to be being used for the minpaku business, industry sources said.

The smaller-than-expected number seems to be partly because local authorities were preparing to introduce their own rules under the minpaku law, including restrictions on where and when minpaku services are allowed.

By prefecture, 883 applications were submitted in Tokyo, 559 in Hokkaido, and 161 in Osaka.

Of the total, 1,134 applications had been accepted by Friday.

The minpaku sector has been expanding in Japan in recent years, with the advent of online-based accommodation agencies for travelers including Airbnb.

The emerging business can be conducted under the existing Inns and Hotels Act, but it imposes stiff requirements on operators for obtaining licenses.

Due to the high hurdle, unauthorized minpaku operators have been rampant, causing problems between minpaku users and local residents.

The new law does not demand that minpaku operators obtain licenses, but obliges them to be registered, so local authorities can supervise their security and hygienic management.

The minpaku law limits the number of business days per year to 180, which may be further reduced by local ordinances.

Minpaku agency websites are also required to be registered, with the central government, under the new law. So far, there have been 46 applications. Jiji Press