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Vacation Rental Accommodation under the Hotel Business Act
Kansai TV recently broadcast a programme about a loophole that allows people to open vacation rental accommodation (Minpaku) by registering as a hotel business.
In Osaka, there was a ‘Special Zone Rental Vacation (Tokku Minpaku)’ scheme which, unlike the statutory vacation rental scheme—which typically imposes an annual operating limit of 180 days—allowed year-round operation. However, due to issues such as litter and noise, as well as the fact that vacation rental had been misused to facilitate the acquisition of residence visas, the scheme has now ceased accepting new applications. Consequently, the method of operating vacation rental as a ‘common lodging house (Kanishukusho) ’ under the Hotel Business Act has attracted the attention of foreign nationals. Strictly speaking, common lodging houses require a reception desk at the entrance; however, in Osaka, the regulations were so lax that applications would be approved provided there was a reception within 1 km of the premises, even without an on-site manager. Of course, this is subject to passing rigorous inspections and meeting fire safety standards, but this effectively makes it possible to operate as a hotel business even from a single flat in a block of flats. In this regard, Kyoto City prohibits such operations in blocks of flats as a general rule.
What surprised me about this programme was the existence of administrative scriveners offering advice on how to circumvent the regulations. I couldn’t help but feel that, as far as they were concerned, as long as it was profitable, it didn’t matter if it caused a nuisance to local residents.
Regarding Kyoto City’s regulations on vacation rental, I recently wrote that they were unavoidable, but I can only hope that the regulations are implemented as soon as possible. Above all, I do not want to see a repeat of past mistakes, such as residents being evicted from their flats in Kyoto due to vacation rental operations. After all, a tourist destination without local residents has no future.