JAPAN: Japanese Culture Doesn't Condone Sharing, Airbnb And Uber Struggling

With thousands of Airbnb reservations scrapped and Uber reduced to delivering food, life is hard in Japan for the giants of the sharing economy. They’re stuck between tough regulation and popular suspicion.

Japan may be the world’s third-largest economy and a high-tech hub but it has been surprisingly slow to warm up to the sharing economy that has disrupted markets across the globe.

According to 2016 figures compiled by research institute Yano the sharing economy accounted for ¥50 billion ($455 million) in Japan.

While that’s a 26 percent year-on-year rise, it is a drop in the ocean compared with the Europe, U.S. and China markets, which are worth tens to hundreds of billions of dollars.

This is partly due to confusion among the public about what the sharing economy is: only 2.7 percent of the population are familiar with the concept according to a 2017 survey by PwC professional services firm.

Strict local regulations have also held back the sector ,as flat-sharing firm Airbnb found out recently to its chagrin.

On June 15, a new law came into effect that sought to regulate the short-term rental sector.

Although welcomed by Airbnb as a way to clear up the legal gray zone in which it has been operating, the new law has become somewhat of a double-edged sword, with thousands of owners forced to cast off property after failing to comply with the new requirements.

This stinks and that’s an understatement, fumed Airbnb as it announced it was canceling thousands of reservations with owners who had failed to obtain a registration number by June 15.

In addition, the law prevents owners from renting out properties for more than 180 nights per year and local authorities can impose further restrictions.

In Kyoto for example, the tourist-magnet city sees residential area rentals are only allowed between mid-January and mid-March, when there’s a slump in tourism.

Such restrictions are in effect choking the sector, says Hiroyuki Kishi, a former trade ministry official and now professor at Tokyo’s Keio University.

Vested interests are so strong in Japan, regretting that such measures are coming into force only two years before the Olympic Games when Japan hopes to welcome 40 million tourists.

For Airbnb, the laws seek to protect the hotel industry and ryokans traditional Japanese inns whereas the taxi lobby has made it difficult for ride-sharing app Uber to set up shop in Japan.

To promote the sharing economy, we have to loosen regulations to allow new players to enter the market, said Kishi.

He believes that despite the economical reform efforts of Prime Minister Shinzo Abe, the government has no intention of opening up the sector for fear of a backlash in sectors which have enjoyed a monopoly until now.

Sharing economy firms have faced pushback elsewhere too, with Uber being accused of skirting regulations and making long-standing jobs obsolete, and Airbnb criticized for pushing up prices and transforming residential areas in many popular tourist destinations.

In Japan, public opinion is very much against services like Airbnb and Uber.

We have tried to change this mentality but it is very difficult. It takes time,one Taxi operator says.

One reason is that Japanese are very protective of their privacy.

The culture of sharing is not ingrained in society and in the case of Airbnb, they do not like the noise and security risk caused by a procession of tourists in their backyard, he said.

In addition, unlike in many developed economies, the quality of service is very high in Japan.

Hailing a taxi in a major city rarely takes more than a few seconds, lowering demand for Uber-type services.

Despite this bleak picture, there are some successes, notes Sabetto, with younger generations showing a greater interest in the sharing economy.

Car and bike sharing schemes are taking off and meal delivery service UberEATS has been a hit in Tokyo since arriving in 2016.

But local startups struggle to stay financially afloat, Sabetto said, in a country that tends to pride monozukuri or craftsmanship above innovation.

Some firms are moving away from the cities into the countryside, where a steady trend of depopulation has made the sharing economy more attractive.

Uber last month said it would launch a pilot program this summer to hook up tourists and residents with available drivers in the western Awaji island.

But Sabetto said a change in culture was needed for the sharing economy to really take root.

I would like foreigners that are aware of the sharing economy to make their voice heard more to change the situation, he said.


Tourism Observer

MALAYSIA: Malaysia Airlines Allows Passengers To Postpone Travels

Following the strong earthquake that struck Osaka, Japan yesterday, Malaysia Airlines announced that it will allow passengers to postpone travels between Kuala Lumpur and Kansai.

Passengers travelling from 19 until 30 June 2018 will be able to postpone their travels before 15 July 2018, subject to flight availability, the national carrier said in a statement.

It added that they are monitoring the situation and will be guided by the authorities on safety to travel into Kansai International Airport.

Meanwhile, present flights by Malaysia Airlines to and from Kansai, are operating as scheduled.

For more information, passengers may call Malaysia Airlines’ call centre at 1-300-88-3000 (in Malaysia) or +603-7843 3000 (outside Malaysia).

The 5.3 magnitude quake resulted in the deaths of at least four people while 214 sustained injuries.

Those who were killed included a nine-year-old girl.

The powerful quake rocked Japan’s second city of Osaka on Monday, killing three people including a nine-year-old girl and injuring more than 200, according to an official tally.

Television images showed buildings swaying and burst pipes spewing water after the quake, which struck at the height of rush hour in the city of around two million.

However, there was no large-scale destruction and no tsunami warning issued after the earthquake, although commuters were stranded and tens of thousands were left without power.

Among the casualties was a nine-year-old girl who died in the city of Takatsuki north of Osaka, reportedly trapped by a collapsed wall following the 5.3-magnitude quake.

The other two dead were an 80-year-old man killed by a collapsing wall and a man trapped under a bookcase in his home.

The Fire and Disaster Management Agency said more than 200 people were injured.

Prime Minister Shinzo said the government was working united, with its first priority on saving people’s lives.

And government spokesman Yoshihide Suga cautioned there was a possibility of strong aftershocks.

Large-scale quakes are likely to happen in the next two to three days, he said.

Japan sits on the Pacific Ring of Fire where many of the world’s earthquakes and volcanic eruptions are recorded.

On March 11, 2011, a devastating magnitude 9.0 quake struck under the Pacific Ocean, and the resulting tsunami caused widespread damage and claimed thousands of lives.

It also sent three reactors into meltdown at the Fukushima nuclear plant, causing Japan’s worst postwar disaster and the most serious nuclear accident since Chernobyl in 1986.

Local residents described the moment the quake jolted the highly urbanised area at 8:00 am, when platforms would have been heaving with passengers waiting to board their commuter trains.

The floor moved violently. It was a strong vertical jolt. Nearly all of the dishes fell and shattered on the floor, said Kaori Iwakiri, a 50-year-old nurse in Moriguchi just north of Osaka city.

My parents suffered a blackout and they have no water. I plan to take water to them now.

Despite its relatively low magnitude, the quake caused quite a shake, registering a lower six on the Japanese experiential scale of up to seven – meaning it is hard to stay standing.

The tremor reminded Japanese of the devastating 1995 Kobe earthquake, which killed nearly 6,500 people.

A parent said, i was worried about my son as he had just left for his high school. I was relieved when I confirmed he was safe.

NHK showed footage of firefighters tackling a blaze that ripped through a home north of Osaka.

A number of train services were suspended, including the shinkansen bullet train, as multiple smaller aftershocks followed the quake.

The Nuclear Regulation Authority said it had detected no problems at its local atomic power plants, but some companies including Honda said they had suspended operations at local plants.

Kansai Electric said on its website that around 170,000 homes in the Osaka region were briefly left without power.

There are fears that the risk of house collapses and landslides has increased in the areas shaken strongly, said Toshiyuki Matsumori, in charge of monitoring quakes at the meteorological agency.

Around 850 people were evacuated to shelters, a local government spokesman said.

Some 40 soldiers were deployed to areas where the water supply was damaged.

Local officials also issued a warning against spreading fake news online after a tweet claiming a zebra was on the loose after the quake went viral.

Tourism Observer

JAPAN: Japan Plans To Ease Chinese Visa Rules To Boost Tourism

Japan is considering relaxing restrictions on visas for tourists from China, three people with direct knowledge of the matter said on Thursday, hoping to extend a tourism boom and lend support to consumer spending.

Since Prime Minister Shinzo Abe took office in late 2012, his government has gradually eased visa requirements for Asian countries, pushing to a record high the number of inbound visitors and sparking an increase in hotel construction.

The government is considering lowering the prescribed minimum annual income a Chinese citizen needs to obtain a multiple-entry visa to 3 million yen ($26,983.27) from around 4 million yen now, the sources said.

"We want to announce this policy when the time is right, depending on the pace of increase in hotel accommodation," said one source, who declined to be named because the plans are not final.

The number of foreign visitors to Japan rose 21.8 percent to a record 24 million last year, the Japan National Tourism Organization has said.

China was the number one source of tourists visiting Japan, accounting for 26.5 percent of all arrivals.

JAPAN: Tourism Boost To Highlight Japan's Cultural Assets

With Japan determined to increase the number of foreign tourists to the country by 2020 when it hosts the Olympic Games, the government plans to maximize the use of cultural assets at 200 spots nationwide to spark visitors’ interest in Japanese history and culture, a draft of the government’s new plan shows.

Under the draft, the government aims to introduce cultural properties and historical assets to tourists in as many languages as possible, repair shrines and other historical buildings, and promote local performing arts. Where exactly the government will extend its support, however, has yet to be decided, government sources said.

The new draft plan comes at a time when Prime Minister Shinzo Abe’s government—which sees tourism growth as a key strategy for Japan’s economic prosperity—is hoping to counter criticism that some regions are not enjoying the benefits of growing tourism.

In 2015, a record 19.74 million foreigners visited Japan, but tourists are more inclined to head to the so-called “golden route” sites encompassing popular destinations such as Tokyo, Kyoto and Osaka, Japanese authorities said.

The government is now considering increasing its target of tourists from abroad to 30 million to 40 million by 2020, the sources said.

After considering factors such as the availability of hotels in Tokyo, the government will decide on a target for the number of tourists it wants to attract and incorporate this in a strategy to be compiled this month at the earliest, the sources said.

In hopes of luring more visitors to local areas, the government plans to make it even easier for tourists to travel to less popular regions by train and other means of public transportation.

One of the ideas is to designate around 100 shinkansen bullet train stations as key points for the dissemination of tourist information, but details are still being discussed.

The government will also improve wireless communication in bullet train tunnels and connectivity of highway buses and rail services.

Another plan is to upgrade existing travel services such as the system of issuing the “Japan Rail Pass.” The cost-effective rail ticket, which offers unlimited use of almost all Japan Railway trains, can only be purchased abroad, but from fiscal 2016 starting in April, these passes would be available in Japan on a trial basis.

Japan also plans to increase the number of airports and train stations which can provide luggage delivery services to allow tourists to travel without having to carry their baggage.

INDIA: Bullet Train,India To Get $ 12 bn Project With Japan

A Rs 98,000-crore project to lay India's first bullet train network between commercial nerve centre of Mumbai and Ahmedabad was today finalised at the annual summit talks between Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe.

"No less historic is our decision to introduce High Speed Rail on the Mumbai-Ahmedabad sector through Japan's Shinkansen, known for its speed, reliability and safety," Modi said at a joint media event with Abe.

He also greatly appreciated Abe's extraordinary package of approximately USD 12 billion (approx Rs 98,000 crore) and technical assistance, on very easy terms, for this project

The bullet train network will link India's financial hub Mumbai with Ahmedabad, the capital of Modi's home state Gujarat. Bullet train between the two cities will cut travel time on the 505-kilometre route from eight hours to around three.

"This enterprise will launch a revolution in Indian railways and speed up India's journey into the future. It will become an engine of economic transformation in India," Modi said.

Foreign Secretary S Jaishankar said Japan will provide 80 per cent of the funds for the project at 0.1 per cent interest rate for a period of 50 years.