News On Japan

Tensions Rise Over Surge in Private Lodging in Osaka

OSAKA - As the number of foreign tourists visiting Japan continues to rise, Osaka is seeing a rapid increase in "special zone private lodgings." In Konohana Ward, a 212-unit apartment building has been fully converted into short-term rentals, sparking conflict with nearby residents. Opposing the plan, neighbors have submitted a petition to Osaka City.

The operator insists there are no legal violations and says it is seeking coexistence with local residents, but experts point to flaws in the system’s design.

According to the latest data released by Japan’s government tourism agency, the number of foreign visitors to Japan last month was approximately 3.69 million, up 21.5% from the same month a year earlier. With the Osaka-Kansai Expo approaching, May saw a record high for that month. While tourism revenue is increasing, the shortage of accommodations is becoming increasingly serious. This has fueled the growth of special zone private lodging, a system that allows ordinary residences to be used as accommodation under certain conditions.

In areas like Nishinari Ward, these special lodgings are expanding rapidly. Buildings lined with short-term rentals now dominate some streets. As of the end of April this year, Osaka City had 614 registered special zone lodgings, accounting for about 95% of the national total.

However, the surge in demand for inbound tourism has brought problems. One prominent case involves a 14-story, 212-unit apartment building in Konohana Ward, which is being entirely converted into short-term lodging. A local resident explained that while the operator originally planned to convert only part of the building into rentals, earlier this year they suddenly announced the entire building would be turned into vacation rentals.

The resident expressed concern, saying, "There are safety and disaster response issues, especially if a major earthquake like a Nankai Trough event occurs. With so many foreigners staying, initial disaster response could be extremely difficult. That burden would fall heavily on us as neighboring residents." According to the residents, the operator notified them in March that the building would be fully converted and planned to open by the end of June.

"What was once a quiet area may soon see around 500 people daily, each dragging large suitcases. Frankly, it makes me want to move out," one neighbor said. Growing increasingly anxious, residents submitted a petition to Osaka City on June 5th demanding the plan be withdrawn, citing frustration over the last-minute change and insufficient explanation to residents.

In response to questions from TV Osaka, the operator stated that it could not hold explanatory meetings until the residence registration was finalized. It emphasized that there are no legal problems and that discussions with local residents are ongoing with a positive attitude toward coexistence.

Experts argue that the root of these disputes lies in the design of the special zone lodging system itself. One expert noted, "Most people imagine private lodging as operating just one unit in an apartment building, but this case, where the entire building is being converted, is rare. Under normal circumstances, they should have been required to obtain a hotel or ryokan license. The problem is that careful discussions were lacking when designing the system. That is the biggest issue."

Source: Television OSAKA NEWS

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