Tujia turns to Japan market amid homestay boom
Chinese vacation rental operator Tujia is turning to Japan's market for short-term rentals by setting up a Tokyo-based subsidiary, capitalized at JPY 5 million (USD 44,500), according to Japanese news website Nikkei.
The company plans to list 5,000 Japanese properties by 2020. Property owners will be charged service fees equivalent to 3% of the cost of a stay, compared with a steep 12% in China.
Nikkei reported that new legislation in Japan to be submitted would legalize private room rentals for up to 180 nights per year. Tujia plans to set up a property management subsidiary in Japan to take advantage of the new legal clarity.
Tujia has also teamed up with Loco Partners, the Tokyo-based operator of travel-booking site Relux. Beginning February 1, Tujia users can book rooms at the 700 high-end and traditional Japanese-style ryokan inns Loco works.
Chinese travelers spent around JPY 1.48 trillion (USD 13.06 billion) in Japan in 2016, accounting for 39.4% of the country's total tourist revenues.
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