Airbnb receives government supports in its fastest-growing market
When it comes to the regulatory of the so-called sharing economy, particularly, one of the most valuable startups in the world, Airbnb, different governments have different reactions. While New York city recently passed the bill that bans any rental post for any term shorter than 30 days on Airbnb, Japan has tried to lower restriction on Airbnb-style rentals, which is called Minpaku business in Japanese term. The new law that it plans to submit to the regular session of the National Diet, Japan’s bicameral legislation that composes of House of Representatives and House of Councillors, in 2017 will shorten the minimum stay requirement to two days and eliminate real estate zoning law restriction. Instead, it requires the Airbnb hosts to have a contract with an outside management company, a registered Minpaku business. The company will perform background checks of guests, receive neighbors’ complaints, and enforce the guests’ compliance with building rules.
Japan’s situation, however, is different from New York. In preparation for Rugby World Cup in 2019 and the Olympics, Abeconomics has deflated the yen and loosened the visa requirements, which significantly increases the number of tourists, putting constraint on the housing supply. The hotel occupancy rate reaches the highest level, 70% since 2010. The graph below shows stead increases in the flows of overseas residents from 2012 to 2016. The number of tourists in 2016 is more than double the number in 2012. The new policy will allow residential owners to utilize their properties and accommodate the coming influx of tourists.
Airbnb has grown dramatically in Japn. The number of guests increase by 529% while the listings are up by 373% from 2014 to 2015. With this new law, the Japanese government has showed their efforts to embrace the technology impact of sharing platforms by establishing a new legal framework for the Minpaku business and excluding them from the Hotel Business Law. At the same time, the government also plan to revise the strict regulations on hotels and ryokan industries, making it easier for them to serve foreign tourist and hire help from abroad, thus ensuring a fair competition between the traditional hotel business and the emerging Minpaku business.
References:
Japan releases details of new law on Airbnb-style rentals. Retrieved November 20th, 2016, from http://resources.realestate.co.jp/news/japanese-govt-releases-details-law-airbnb-style-rentals/
Despite regulatory issues, Airbnb looks to boost listings in Japan, its fastest-growing market. Retrieved November 20th, 2016, from http://www.japantimes.co.jp/news/2015/11/27/business/despite-regulatory-issues-airbnb-looks-boost-listings-japan-fastest-growing-market/#.WDEHnKIrJ-U
National Diet. Retrieved Dec 5th, 2016, from https://en.wikipedia.org/wiki/National_Diet
Overseas residents’ visits to Japan. Retrieved Dec 5th, 2016, from http://www.tourism.jp/en/tourism-database/stats/inbound/
