Seven Osaka Municipalities to Withdraw from 'Tokku Minpaku' Special Zone Homestay Program Amid Rising Complaints

It was revealed on the 29th that seven municipalities in Osaka Prefecture have expressed their intention to withdraw from the "Tokku Minpaku" (Special Zone Homestay) program, established under the National Strategic Special Zones system. Amid a barrage of complaints from residents regarding noise, waste problems, and deteriorating public safety, the ryokan and hotel industry is also calling for the abolition of the system, raising renewed questions about the future of Tokku Minpaku.

The seven municipalities that have expressed their intent to withdraw are Ibaraki City, Daito City, Minoh City, Fujiidera City, Shijonawate City, Shimamoto Town, and Toyono Town. In response to a survey conducted by Osaka Prefecture targeting 34 municipalities without their own health centers, these seven municipalities stated they would terminate all special zone measures related to Tokku Minpaku throughout their areas.

The Context: Understanding Tokku Minpaku

The "Tokku Minpaku" (Special Zone Homestay) system is a form of short-term private lodging permitted under Japan's National Strategic Special Zones program. This program was introduced under the Abe administration to promote economic growth through deregulation, particularly targeting the booming inbound tourism market. Unlike traditional hotels, ryokans, or even standard private homestays (known simply as "minpaku") which operate under the Hotel Business Act or the Private Lodging Business Act (Minpaku Act), Tokku Minpaku facilities are subject to specific, often more lenient, regulations within designated special zones.

Osaka Prefecture became a primary hub for Tokku Minpaku, hosting approximately 95% of all such facilities nationwide. The intention was to increase accommodation capacity for international tourists. However, the rapid expansion of these facilities, often located in residential areas, has led to significant friction with local communities, as detailed in this article. The distinct regulatory framework for Tokku Minpaku, compared to other lodging types, has also created tensions with the established hotel and ryokan industries, who feel disadvantaged by stricter compliance requirements.

Since the system's inception, severe troubles have frequently occurred between local residents and users, stemming from issues such as noise and illegal waste dumping due to poor guest manners, deteriorating resident sentiment, and even the proliferation of unlicensed "white-taxi" services. Strong opinions are being heard, such as "areas where tourists stay should be separated."

In light of this situation, industry associations representing hotels and ryokans have submitted a petition to Osaka City and Osaka Prefecture, demanding the abolition of the "Tokku Minpaku" system. They are increasingly alarmed by the current situation where existing accommodation facilities are strictly bound by laws and regulations, while Tokku Minpaku is not. The petition strongly calls for the immediate cessation of "Tokku Minpaku that only serves to worsen resident sentiment," and urges proactive administrative action.

Voices are also growing louder, pointing to policy failures and demanding accountability from the Osaka Ishin no Kai (Osaka Restoration Association), which has been deeply involved in promoting Tokku Minpaku, and its leader, Hirofumi Yoshimura (Governor of Osaka Prefecture). While Governor Yoshimura himself has indicated a stance of "suspending new registrations," he is now facing pressure to re-evaluate the previous promotional policies.

It is also pointed out that the withdrawal intentions of these seven municipalities could spread to other municipalities nationwide, and there are calls to consider changes in the accommodation situation after the Osaka-Kansai Expo. Further discussion is needed regarding the future of the Tokku Minpaku system.