The Ikuno Ward-Tsuruhashi area of Osaka City is known for its postwar markets and Koreatown, and it’s steadily gaining popularity among tourists. In this article, we’ll share data and analysis on vacation rental demand in the Tsuruhashi area for property owners, along with strategies for succeeding in the vacation rental business.

We’ll dive deep into station usage figures, the current state of local shopping streets, inbound tourism trends, the number of local accommodations, demand forecasts driven by major events like the World Expo, competing accommodations’ occupancy rates and pricing, local events, and even a revenue simulation for vacation rental operations. Be sure to read through to the end.

Tsuruhashi Station Passenger Numbers and the State of Nearby Shopping Streets

Passenger Numbers at Tsuruhashi Station

Tsuruhashi Station is a major hub where the JR Osaka Loop Line, the Kintetsu Osaka Line and Nara Line, and the Osaka Metro Sennichimae Line all converge. Daily boarding and alighting passenger numbers reach approximately 84,000 on the JR line, 137,000 on the Kintetsu lines, and 26,000 on the Osaka Metro. These figures rank among the highest in Osaka Prefecture, and the station also serves as a major gateway for travelers heading toward Nara.

Nearby Shopping Streets and Koreatown

Around the station spreads a lively network of markets and shopping streets that grew out of postwar black markets, now home to roughly 800 shops, including yakiniku (Korean BBQ) restaurants, Korean grocery stores, and general goods shops. Ikuno Ward’s Tsuruhashi area hosts Japan’s largest Koreatown (Miyukimori Shopping Street), which is said to attract around 2 million visitors annually. Tourists enjoy street food and shopping amid the district’s distinctly exotic atmosphere. For example, the “Tsuruhashi Market” arcade on the east side of Tsuruhashi Station gets so crowded on weekends that it’s hard to even walk through, packed with domestic and international tourists drawn by Korean cuisine and K-pop merchandise.

The Economic Scale of the Shopping Streets

While exact annual sales figures haven’t been published, the thriving state of the yakiniku restaurant district around JR Tsuruhashi Station—known as a fierce battleground for Korean BBQ—and the bustling Koreatown suggest a substantial amount of consumer spending flows into the area. According to reporting by The Asahi Shimbun, the Koreatown surrounding Tsuruhashi Station, packed with Korean restaurants and cosmetics shops, draws around 2 million tourists per year. The retro atmosphere of the markets that have endured since the postwar era also helps sustain its popularity, and it’s clear that dining and retail contribute significantly to the local economy.

References:
Tsuruhashi Station: A Town with One of Japan’s Largest Koreatowns | Osaka Vacant Property News: Latest Restaurant Property Listings and Trends
“The Changing ‘Zainichi Korean Town’: Osaka’s Ikuno Ward, Where Residents’ Roots Span 80 Countries” – The Asahi Shimbun

Inbound Tourist Nationality Ratios and Post-COVID Recovery Trends

Latest Trends in Foreign Visitors to Japan

Since the COVID-19 pandemic, inbound demand to Japan has been rapidly recovering. In 2023, the number of foreign visitors to Japan reached approximately 25.07 million, recovering to about 79% of pre-pandemic (2019) levels (excluding China, the figure reaches 102%, essentially a full recovery). By nationality and region, South Korea ranks highest, followed by Taiwan, China, Hong Kong, and the United States, with East Asian markets showing a particularly notable rebound.

Recovery Status Across Asia

Within East Asia, recovery varies by country. Visitor numbers from mainland China remained sluggish through the first half of 2023 due to travel restrictions (at less than 20% of 2019 levels), while South Korea and Hong Kong have already recovered to roughly 80% of 2019 levels, and Taiwan to around 70%. Southeast Asia, meanwhile, is performing even better, with countries like Singapore and Vietnam now exceeding their 2019 numbers. Asian tourists visiting Osaka—particularly from nearby South Korea and Taiwan—have surged, and travelers from these two countries are increasingly visible in Tsuruhashi’s Koreatown.

Trends from the West and Australia

Tourism from Europe, the United States, and Australia has also been recovering, with some markets already surpassing pre-pandemic levels. Visitor numbers from the United States in particular exceeded 120% of the same month in 2019 in some months of 2023, showing an exceptionally fast recovery for the North American market. European recovery varies by country but has generally reached around 80% or higher, with some countries like Germany already surpassing 2019 levels. Thanks in part to the weak yen, travelers from the West and Australia also tend to spend more per person, and Osaka has seen a growing presence of these free-spending visitors.

Inbound Recovery in Osaka

Osaka Prefecture as a whole is also seeing inbound tourism return. As of June 2023, visitor numbers reached 72% of pre-pandemic levels—a notable figure given that visitors from China remained at less than a quarter (23.7% of 2019 levels) during this period. In other words, markets outside of China are already exceeding 2019 momentum. Indeed, visitors from the United States were up 29% compared to the same month in 2019, with double-digit increases also seen from Southeast Asian and Latin American countries like the Philippines and Mexico. As a result, Osaka’s major tourist spots are once again bustling with foreign visitors, and the Tsuruhashi area is increasingly seeing visitors from the West alongside its traditional Korean visitor base.

References:
[Country-by-Country Graph Trends] May 2023 Foreign Visitor Numbers Maintain Recovery Trend – 8 Countries Now Exceed 2019 Levels – Japan Inbound Navi
Inbound Demand Recovering Steadily: 2023 Estimate of ¥5.9 Trillion Surpasses Pre-Pandemic Levels (June Foreign Visitor Numbers) | Takahide Kiuchi’s Global Economy & Policy Insight | Nomura Research Institute (NRI)

Vacation Rental Registrations and Accommodation Numbers in Ikuno Ward

Vacation Rental Registration Numbers (Ikuno Ward)

Ikuno Ward is largely a residential area within Osaka City’s 24 wards, but it does host a certain number of vacation rentals. As of the end of August 2019, Ikuno Ward had 33 registered private lodging businesses (vacation rentals operating under Japan’s Private Lodging Business Act), along with 333 approved rooms under the National Strategic Special Zone vacation rental system. While this places Ikuno at a mid-level compared to other areas within Osaka City, it’s on par with the neighboring Higashinari Ward to the east. Before the pandemic, rising inbound demand clearly encouraged many hosts within Ikuno Ward to launch vacation rental operations.

Number of Existing Accommodations

Ikuno Ward also has accommodations licensed under the Hotel Business Act. There are 29 licensed simple lodging facilities (equivalent to guesthouses or hostels), with only a handful of ryokan- or hotel-type establishments (large-scale hotels are scarce in the ward). Unlike Chuo Ward or Naniwa Ward, which have bustling downtown districts, Ikuno Ward isn’t a concentrated accommodation hub—but thanks to its location along the JR Loop Line, small business hotels, guesthouses, and vacation rentals converted from single-family homes are scattered throughout the area. For example, guesthouses catering to foreign backpackers and simple lodging-type accommodations offering exclusive single-group rentals operate around Tsuruhashi Station, providing options for tourists.

Vacation Rental Host Registration Status

Regarding registrations under the Private Lodging Business Act, Osaka City as a whole saw a rapid surge after the law took effect in 2018, at one point reaching over 2,500 total registrations citywide. However, stricter regulatory enforcement afterward, along with pandemic-driven business closures among some operators, means the number of currently active registrations may now be lower than at that peak. It’s unclear what percentage of Ikuno Ward’s 33 pre-pandemic vacation rental registrations have resumed operations, but as inbound demand recovers, hosts appear to be gradually returning to the market. Unregistered, illegal vacation rental operations have been on the decline in recent years, and new operators are expected to launch within the bounds of the law.

Accommodation Demand Forecasts Tied to the 2025 Osaka-Kansai Expo and the Integrated Resort

Osaka-Kansai Expo Visitor Forecasts

The “Osaka-Kansai Expo,” to be held in 2025 on Yumeshima Island in Osaka’s Konohana Ward, is expected to draw enormous crowds. Running for 184 days from April 13 to October 13, 2025, the Expo is officially projected to attract approximately 28.2 million visitors, of which around 3.5 million (12% of the total) are expected to come from overseas. This event is expected to drive a significant increase in accommodation demand both within Osaka City and in surrounding areas. The Expo Association and Japan Tourism Agency are both watching closely, anticipating that the Expo will further accelerate the post-pandemic expansion of inbound tourism.

Accommodation Demand and Areas of Concern

Daily attendance during the Expo is expected to reach several hundred thousand people, and reservations are anticipated to surge not just at hotels and ryokan but at vacation rentals as well. Indeed, data from the travel booking site “Jalan.net” shows that accommodation bookings across the Kansai region during the Expo period (April–October 2025) have jumped significantly year-over-year, with Osaka Prefecture up more than 200% and neighboring Hyogo, Kyoto, Nara, and Wakayama up 1.2 to 1.7 times compared to the previous year.

This Expo-driven surge is expected to leave Osaka City’s accommodations nearly fully booked on many days, with overflow demand spilling into neighboring prefectures. At the same time, concerns have been raised over “insufficient accommodation capacity” and “labor shortages.” According to news reports, while accommodation demand is set to rise sharply during the Expo, Osaka City’s hotel industry is facing a chronic labor shortage, raising concerns about the ability to maintain service quality. This challenge extends to vacation rentals as well, making it critical to secure sufficient staffing for the large volume of cleaning and guest support work involved.

The Impact of the Integrated Resort (IR), Including a Casino

Osaka Prefecture and City are also planning to open an Integrated Resort (IR) on Yumeshima around 2029. According to the IR development plan, the facility is expected to draw approximately 20 million visitors annually (roughly 14 million domestic and 6 million international), with estimated economic ripple effects exceeding ¥1 trillion per year. While the IR will include large hotels and entertainment facilities of its own, an overall increase in tourists visiting Osaka is likely to boost accommodation demand across the entire city.

Even after the Expo concludes, continued momentum from the IR, international conferences Osaka hopes to attract, and large-scale live events is expected to sustain strong accommodation demand from both inbound and domestic travelers. Osaka’s goal is to remain a city that continues to attract visitors even after the Expo ends, rather than experiencing a mere “Expo-only boom”—and Ikuno Ward’s Tsuruhashi area stands to benefit from this as well.

References:
“A Region Chosen Even After the Expo Ends”: How the Host Association Aims to Share Japan’s Charm with the World | Japan Inbound Lab
Expo-Driven Surge: Osaka Accommodation Bookings Up 200%, Ripple Effect Reaches Surrounding Prefectures | Travel Vision, Latest Tourism Industry News
Expo Preparations Leave Hotels Facing Labor Shortages | Tourism Media Service

Occupancy Rates and Pricing of Competing Accommodations (Tsuruhashi Area)

Hotel and Guesthouse Occupancy Rates

Hotel occupancy rates in Osaka City have been trending upward since the pandemic, approaching pre-pandemic levels by late 2023. As of October 2023, the average room occupancy rate in Osaka Prefecture reached approximately 74.6%—the second-highest in Japan after Tokyo. Urban city hotels and business hotels show particularly high occupancy rates of 80–90% on weekends and during peak seasons.

Meanwhile, the national average occupancy rate for smaller simple lodging facilities (such as guesthouses) remains lower, with some data putting it around 25% as of autumn 2023. However, this figure includes rural areas and represents an average; popular tourist destinations are the exception. In an area like Tsuruhashi, which draws visitors even on weekdays thanks to its strong tourist appeal, guesthouses and vacation rentals often maintain real-world occupancy rates of 50–60% or higher. Properties frequently sell out completely during weekends and special events, and it’s not uncommon for tourists to struggle to find available rooms nearby.

Typical Accommodation Rates

Accommodation rates in the Ikuno Ward/Tsuruhashi area tend to run slightly lower than those in central Osaka. While the average business hotel rate in Osaka City runs around ¥7,400 per person, per night, small hotels and vacation rentals around Tsuruhashi are typically priced per room, with typical rates in the range of ¥4,000–¥8,000 per person, per night. According to an Osaka Prefecture survey, the average per-person rate at Special Zone vacation rentals is approximately ¥5,025, and approximately ¥4,809 for rentals registered under the Private Lodging Business Act—confirming that these properties are priced more affordably.

For example, many whole-house rentals aimed at families or groups offer plans like “¥10,000 per night for up to 4 guests,” which works out to as little as ¥2,500–¥3,000 per person. These rates are typically based on weekday pricing, and prices often rise by 20–50% on weekends and during peak seasons.

During the Expo period, or when major events (concerts, sporting events, etc.) take place nearby, prices could climb to more than double normal rates to match demand. In fact, accommodation rates during the 2025 Expo are already trending upward, and not just in central Osaka—in the Tsuruhashi area as well, travelers who don’t book early are increasingly finding that only pricier options remain available.

Competitive Landscape

Competing accommodations in the Tsuruhashi area include hotels in the nearby Tennoji Ward (around Uehonmachi and Tennoji), as well as guesthouses in other parts of Ikuno Ward, such as around Momodani Station. Tennoji Station, just one stop from Tsuruhashi, has many larger hotels with somewhat higher average rates, and it competes for the same guests. At the same time, travelers visiting specifically for Koreatown find it convenient to stay directly in the Tsuruhashi/Momodani area, so there’s substantial demand that stays within this district.

In terms of pricing, dormitory-style guesthouses start from around ¥2,000 per night, and private rooms can be found from around ¥5,000, making the area popular among budget-conscious young travelers. Families seeking cleanliness and privacy, meanwhile, tend to choose whole-house vacation rentals or small hotels (around ¥10,000 per room). Overall, the Tsuruhashi accommodation market is centered on low-to-mid price ranges, with essentially no competition from luxury hotels. This makes it all the more important to maintain high occupancy even with budget-friendly pricing.

References:
What’s a Good Hotel Room Occupancy Rate? How to Calculate It and Ways to Improve It – Metroengine Column

Festivals and Events Unique to Tsuruhashi and Ikuno

Miyukimori Shrine Danjiri Festival

The Ikuno Ward/Tsuruhashi area is rich in local traditional events that also serve as tourism draws. A standout example is the “Ikaino Danjiri,” held during the summer and autumn festivals at Miyukimori Shrine. Every summer and autumn, elaborately decorated danjiri (festival floats) and portable shrines wind their way through the narrow alleys of the shopping district, culminating in a dramatic evening parade along the road in front of the shrine.

The sight of danjiri careening through the tight arcade streets is truly spectacular, drawing crowds of local residents and tourists alike. As the name “Ikaino” suggests, this festival is a distinctive event blending the Zainichi Korean community of the Tsuruhashi area with traditional Japanese festival culture. In recent years, travelers have come from overseas specifically to see the danjiri festival, making it a valuable opportunity to experience the area’s multicultural character.

Ikuno Koreatown Festival

Koreatown also hosts vibrant events celebrating food and music. Every autumn (on the second Sunday of November), the shopping district hosts the **”Ikuno Koreatown Festival,”** which has grown into a major event drawing around 20,000 visitors annually. The festival features a diverse lineup of programs—traditional Korean dance performances, K-pop live shows, hanbok-wearing experiences, and kimchi-making contests—filling the entire shopping district with festive energy.

In 2017, the festival drew a cumulative 20,000 attendees, cementing its status as one of Osaka’s leading shopping district events, and it has continued to grow since then, buoyed by the Korean wave (Hallyu) boom. On the day of the festival, many visitors travel from farther afield for a day trip, and quite a few wish they could stay nearby to enjoy the event even more. For vacation rental hosts, local events like this represent a real opportunity to capture surge demand.

Multicultural Exchange Events

Because Ikuno Ward is home to a diverse population, including many Zainichi Koreans and other international residents, the area also hosts events centered on multicultural coexistence. Examples include the **”Ikuno Multicultural Crossing Festival”** and the **”Bangkok Night Market (Ikuno Bangkok Night Market)”** held at the renovated facility “Ikuno Park,” both of which increasingly showcase cultures beyond Korea’s.

A Vietnam-themed night market event was scheduled for December 2024, and the Tsuruhashi/Ikuno area is increasingly becoming a hub for showcasing cultures from across Asia. These events aim to draw visitors not only from the local area but from further afield, ultimately helping to drive accommodation demand. Some kind of event or festival takes place in the Tsuruhashi area throughout the year, making it well-suited to a travel style centered around staying at a vacation rental and leisurely exploring the neighborhood.

References:
Tsuruhashi Station: A Town with One of Japan’s Largest Koreatowns | Osaka Vacant Property News: Latest Restaurant Property Listings and Trends
“Ikuno Koreatown Festival 2017” Set for October 29 (Sunday)! – Event Announcements
[Osaka’s Ikuno Ward] This Time: Vietnam Edition! “Ikuno Multicultural Crossing Festival” Set for December 7–8, 2024…

Vacation Rental Revenue Simulation (A Single Apartment Unit in Ikuno Ward/Tsuruhashi)

Finally, let’s run through a concrete revenue simulation for operating a vacation rental in the Tsuruhashi area. For property owners, it’s important to get a clear picture of the income and expenses involved—both for comparison against standard long-term rental income and as a benchmark for gauging investment payback.

Model Case Setup

Let’s assume you’re operating an apartment unit (accommodating up to 4 guests) within walking distance of Tsuruhashi Station. Based on local market rates, we’ll set the nightly rate at **¥10,000 (flat rate for up to 4 guests)** and assume an average occupancy rate of **around 70%**. Under this scenario, the property would book roughly 21 nights per month (30 days), generating monthly revenue of approximately ¥210,000 (¥10,000 × 21 nights). This is a theoretical estimate—during peak periods like the Expo, occupancy could reach 100% with higher rates possible, while off-peak periods might see occupancy drop to around 50%. We’re therefore targeting an annual average occupancy rate of 60–70%.

Breakdown of Income and Expenses

Against the ¥210,000 in monthly revenue from the model above, let’s subtract expenses. The main cost categories are as follows:

• Cleaning fees: Assuming professional cleaning is arranged after each checkout at ¥5,000 per visit (including cleaning and linen laundering), and assuming 21 nights of bookings translate into roughly 7 checkouts (an average stay of 3 nights), total cleaning costs come to approximately ¥35,000.
• Consumables and utilities: This covers restocking guest amenities (shampoo, toothbrushes, etc.) and increased utility costs. While each group of guests adds only a few hundred yen, this can add up to roughly **¥5,000–¥10,000** per month. We’ll estimate **¥7,000** here.
• Platform fees: When listing on platforms like Airbnb, a host service fee of around 3% of the booking amount is deducted (guests are also charged a separate service fee). Three percent of ¥210,000 in monthly revenue comes to approximately ¥6,300. This would be the case if relying solely on Airbnb, but factoring in additional platforms and payment processing fees, we’ll estimate total fees at roughly **5% (approximately ¥10,500)**.
• Management outsourcing fees (if applicable): If you outsource operations to a management company rather than handling everything yourself, management fees can run 10–20% of revenue. In this case, we’re assuming self-management, so this cost is zero—but if you outsource key handovers and guest communication, expect to pay an additional ¥20,000–¥40,000 per month.

Adding these up: cleaning (¥35,000) + consumables etc. (¥7,000) + platform fees (¥10,500) ≈ ¥52,500 in basic operating expenses. Subtracting this from monthly revenue of ¥210,000 leaves an estimated operating profit of approximately ¥157,500. On top of this, there are the property’s own fixed costs (loan repayments or the opportunity cost of forgone rental income) to consider. If the property’s standard long-term rental rate is around ¥80,000 per month, then generating roughly ¥157,000 in profit—well above that benchmark—would make vacation rental operation the clearly more profitable option.

This simulation assumes a single apartment unit, but larger single-family homes or higher-end apartments could generate even greater profits. It’s essential to carefully calculate your property’s true potential and likely expenses, then take a clear-eyed look at whether entering the vacation rental business makes sense for you.

Long-Term Outlook

Even after the temporary explosion of demand driven by the Expo subsides, continued growth in Osaka’s overall tourism sector should support stable demand for vacation rentals in Ikuno Ward going forward. Looking at the year as a whole, profits from peak seasons can offset slower periods, potentially delivering higher overall returns than long-term rental.

The key lies in a host’s operational skill. Maintaining high cleaning standards to earn strong reviews, flexibly adjusting pricing strategy, and building a base of repeat guests can all significantly impact revenue. Fortunately, tools like Airbnb’s revenue estimator make it easy to get a free projected income estimate for a given area and property type before you even start. By grounding your business plan in real data, you can substantially improve your odds of success as a vacation rental operator.

Reference:
A Must-Read for Vacation Rental Operators: Building a Realistic Income Forecast Using Airbnb’s Free Tools｜Beds24 / Channel Manager, PMS & Booking Engine

For Vacation Rental Management in Ikuno Ward’s Tsuruhashi Area, Talk to Stay Buddy Co., Ltd.!

The Tsuruhashi area of Osaka’s Ikuno Ward stands out as a promising area for vacation rental operations, thanks to its combination of Koreatown’s drawing power and excellent convenience. Tsuruhashi Station’s massive passenger flow, roughly 2 million annual tourists, rapidly recovering inbound demand, and the surge in demand driven by major events like the Expo—together, these factors point to exceptionally strong accommodation demand over the coming years. Data on vacation rental registrations and accommodation pricing in Ikuno Ward likewise suggests substantial profit potential for well-run operations.

That said, running an actual vacation rental involves challenges beyond spreadsheet calculations—labor shortages and review management among them. By building a loyal base of repeat guests through local festivals and events, and by delivering a safe, comfortable stay, you can maximize the value of your property. For property owners, running a vacation rental in Tsuruhashi can be far more than just a short-term income source—it’s an attractive way to grow your asset’s value while contributing to the neighborhood’s vitality. We hope the data and analysis in this article prove useful as you weigh your options.

This article covered general trends for the area, but keep in mind that actual vacation rental returns vary widely depending on a property’s specific potential. Stay Buddy Co., Ltd. offers comprehensive support—from planning and design based on your property’s true potential, to revenue simulations, permit applications, and day-to-day operations. If you’re considering starting a vacation rental in the Ikuno Ward/Tsuruhashi area, please feel free to reach out to us anytime.