💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Airbnb lobbies local Japan governments to ease curbs for Olympics

Published 11/19/2019, 03:21 AM
Updated 11/19/2019, 03:25 AM
Airbnb lobbies local Japan governments to ease curbs for Olympics

By Junko Fujita

TOKYO (Reuters) - Airbnb Inc said on Tuesday it is lobbying local governments in Japan to ease curbs on short-term home rentals during next year's Tokyo Olympics, seeking to counter a thicket of rules imposed last year.

Japan's short-term home rental market plunged after Japan introduced a law requiring hosts to register with local governments and imposing other restrictions that prompted many to drop the service.

Airbnb Japan country manager Yasuyuki Tanabe said the San Francisco-based company would seek tie-ups with local governments, asking them to craft exemptions to the rental curbs during next year's Games.

The company expects to reach agreements with partnerships with some local government in the Kanto area around Tokyo, but Tanabe did not name any.

Airbnb on Monday announced a nine-year partnership with the International Olympic Committee (IOC) to provide accommodation for the world's biggest sporting event and cut the cost for host cities.

The partnership runs from the Tokyo 2020 Games next year until 2028 and covers five Olympics and Paralympics events.

The deal is worth $500 million, the Financial Times reported, citing people briefed on the matter. Tanabe declined to provide any forward-looking numbers at a Tokyo news conference.

The Japanese government exempts short-term rental hosts from the national law when demand for accommodation is expected to jump because big events. Local governments are authorized to run the service.

Airbnb used those exemptions during this year's Rugby World Cup in the city of Kamaishi and four other places, which saw guest arrivals spike by 135% from a year earlier, the company said.

"There aren't many events as exciting as the Olympics," Tanabe said. "We have many ways to participate in this event, but one way is to become a host for short-term stay."

Japan's temporary lodging law limits home sharing to 180 days a year, a cap that hosts say makes it difficult to turn a profit. It leaves final decision-making up to local governments, many of which have imposed even stricter rules, citing security concerns.

Airbnb's listings plummeted just before the law went into effect. Airbnb would not say how far its numbers had fell from the pre-law high of 62,000, but a week before the law kicked local governments approved just 150 listings.

Airbnb said its listings have rebounded to 90,000.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.