From Tokyo to Osaka: Exploring the Golden Opportunity for B&B Investment in Japan

According to the Japan National Tourism Organization (JNTO).The number of foreign tourists visiting Japan in July 2024 was approximately 3,292,500, andAn increase of 10.11 TP3T compared to 2019, extending the previous month's single-month high. Compared to the same period in 2023 (1,303,090,000), there was an increase of more than 8 million.

The recovery of Japan's tourism industry, directlyDriving a surge in demand for B&BsThe first of its kind, it has in turn set off theB&B investmentThe boom.

Faced with the recovery of Japan's tourism industry, many investors are eager to invest in B&Bs. At this time, we need to understandTypes of Minshuku in Japanas well asinvestorsdominanceThe

01

Types of B&Bs in Japan

Currently, there are three types of legal minshuku in Japan: minshuku certified under the Residential Lodging and Parking Business Law, special zone minshuku under the National Strategic Special Zone Law, and simple lodgings under the Tourism Law.

❶ guesthouse

Acquisition of recognition as a private lodging under the Residential Lodging Business Act, i.e., residents use their homes (e.g., detached houses, condominiums, etc.) to run a business designed to increase income as a side business.

Its application process is relatively simple and approval is usually completed within a month. However, it is worth noting that the B&B'sAnnual business days are limited to 180 daysThis may have an impact on overall earnings to some extent.

❷ SAR B&B

The SAR B&B isOperating in special national strategic areas designated by the Government of Japanof a special type of B&B.

This type of B&B enjoys relaxed Hotel Business Law regulations, not only is there no restriction on the number of days of operation, but the permit application process is also more streamlined, making it easier to operate. It should be noted, however, that D.C. B&Bs are usually required toAt least three consecutive days of accommodation, does not accept reservations for single day stays.

❸ bed and breakfast

Simple lodgings areEstablished under the Hotel Business ActA form of providing shared accommodation for multiple people.

Its main advantages areNo limit on the number of days in businessThe higher degree of flexibility helps to improve overall returns. However, the Simple Lodging HouseNeed to meet more stringent facility conditionsIt is therefore relatively costly and the approval process can take as long as six months.

02

Investing in a B&B in Japan

What are the advantages

As the Japanese exchange rate continues to weaken, the number of travelers to Japan is expected to continue to climb, providing a steady stream of customers for the B&B.

What makes Japanese B&Bs attractive to global investors? It is mainly due to the following advantages:

❶ Strong market demand

As Japan's tourism industry continues to grow, the demand for B&Bs continues to grow, providing investors with a wide range of market space.

❷ Strong policy support

The Japanese Government attaches great importance to the development of tourism and has introduced a series of policies to support the B&B industry. For example, laws and regulations such as the National Strategic Special Area Law and the Residential Lodging Business Law provide a more liberal environment for B&B operations.

❸ High rate of return

The rate of return on B&Bs in Japan is generally high, and investors can earn a stable income from operating a B&B.

❹ Excellent geographic location

Most Japanese B&Bs are located in areas with beautiful scenery and easy access to public transportation, which attracts a large number of tourists to experience them.

The Japanese lodging industry is thriving, so if you are interested in investing or moving to Japan, please feel free to inquire!