News By the Second – February 25, 2016 – For Airbnb business cannot be better in Japan, but the approach by the short-term rental site is facing some big challenges in the third biggest economy in the world.
The number of guests from Airbnb in Japan surged last year by 500%. The jump coincided with foreign visitors setting a new record for visiting Japan at close to 20 million. That boosted the accommodations demand in the country where hotel rooms often times are in very short supply.
The startup, based in Silicon Valley, has seen explosive growth in Japan, but that has not set well with everyone.
Some communities, such as Brillia Mare Ariake in an upscale area of Tokyo have banned all vacation rentals.
A representative for the complex said that hotels are where the public stays and we want our place to remain exclusive.
Along with being banned from certain private complexes, Airbnb is running into other trouble with some of Japan’s public authorities.
The cabinet of Prime Minister Shinzo Abe put forward a plan to regulate renting of private homes to visitors.
The details have to be finalized but amongst the different rules being discussed are a stay of at least one week and a limit on the size of the room.
The condition could cause many hosts of Airbnb in Japan to be on the wrong side of the new law. Guests on average stay fewer than four nights in Airbnb locations, according to an Airbnb spokesperson.
Local authorities are the ones that must implement the rules. Rather than waiting for a plan nationally to be finalized one Tokyo district has moved forward and announced restrictions while others are working on restrictions that are similar.
In Japan, the Airbnb said it was taking part in the consultations with the government and is grateful for being given the opportunity to be part of the discussion on policy for home sharing in the country so simple and clear rules can be set and followed.
The startup has been given a value of over $25 billion, but has come under challenges in other large cities as well including San Francisco and New York.