Japanese cities bet on non-hotel alternatives in face of supply crunch

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Noda (left) and Gebbia after signing the agreement

Local governments in Japan are encouraging the use of non-hotel accommodation in anticipation of the expected visitor boom during the 2019 Rugby World Cup and Tokyo 2020 Olympic and Paralympic Games.

Following the proposed deregulation of short-term rentals including Airbnb earlier this year, Airbnb co-founder Joe Gebbia recently signed an MoU with Takenori Noda, mayor of Kamaishi, Iwate Prefecture, to facilitate the hosting process for homeowners in the city.

As host city for the rugby mega-event in 2019, Kamaishi is expected to welcome 30,000 visitors during the tournament. Its hotels and ryokan, however, can accommodate only 1,000 guests.

With the partnership, the city plans to identify community leaders to help potential hosts list their homes on Airbnb, and the homesharing platform will “provide training and materials that will help existing and potential hosts understand the services provided… and how to be a good host”, according to Airbnb representative Miho Saito.

Meanwhile, the Osaka municipal government is hoping for “many more” applications from the public to be registered as minpaku (home-lodging) providers.

Aria Aoyama of the Osaka Convention and Tourism Bureau said: “It is of (utmost) importance to ensure that Osaka welcomes its visitors into an environment that ensures safety and security, so that our visitors always have peace of mind.”

Officials hope the move will ease the strain on hotels and ryokan in the city but travel agents are unsure of the implications. HIS spokesperspon Eric Rajepakse said travel agencies have no system for reserving minpaku or knowing what facilities they offer, so they are limited to booking hotels or ryokan for tourists.

The central government also plans to shorten the minimum stay at minpaku from six nights to two nights to make the accommodation more appealing and practical for inbound visitors. Osaka is expected to adopt the rule in 2017.

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