Even If New Applications for Special Zone Minpaku Are Abolished, the Ryokan Business License Remains an Option: A Guide to Application Standards and Opening Preparations

Backed by the momentum of the 2025 Osaka-Kansai Expo, the “Special Zone Minpaku” system—which allows for 365-day operation—is truly a trump card for running a minpaku business in Osaka City.

At the same time, however, many operators likely harbor a vague sense of unease about the future: “What will happen to this system once the Expo ends?” or “If new applications are suspended or abolished, will I be able to continue my business?”

Rest assured. Let us share the conclusion of this article right away.

Even if the path of Special Zone Minpaku is closed off in the future, you still have a powerful alternative: obtaining a **”Ryokan Business License (Simple Lodging)”**—a permanent business license that offers greater stability and far more operational freedom.

Rather than seeing this as a setback, you should view it as an opportunity to elevate your business to a solid, unshakeable stage—one that isn’t dependent on a temporary boom.

In this article, while covering the differences from Special Zone Minpaku, we’ll thoroughly explain the application standards for the Ryokan Business License and the concrete preparations needed from obtaining the permit to opening your doors.

Why Should You Consider Stepping Up to the “Ryokan Business” Now?

You might be thinking, “Special Zone Minpaku is still available—why bother with the more demanding Ryokan Business License?” However, operators with a long-term perspective are increasingly recognizing the benefits of transitioning to or acquiring a Ryokan Business License.

1. Securing the “Permanence” of Your Business

The legal basis for Special Zone Minpaku is a “special law” that can change according to national policy. The Ryokan Business Act, by contrast, is a “fundamental law” forming the bedrock of Japan’s lodging industry—and its stability is incomparable. Holding a Ryokan Business License means your enterprise stands as a permanent asset, unshaken by shifts in the social and political landscape.

2. Further Expanding Revenue Opportunities

Special Zone Minpaku in Osaka City comes with a minimum stay requirement of “2 nights, 3 days.” The Ryokan Business Act imposes no such restriction whatsoever. This opens the door to capturing enormous demand you may have previously missed out on—**one-night business travelers and short-term domestic tourists taking advantage of weekend getaways**—further boosting your facility’s occupancy rate and profitability.

3. The Ultimate Risk Hedge for the Post-Expo Era

There’s no guarantee that the market won’t face an oversupply of accommodations or tightened regulations once the Expo concludes. When that time comes, holding a Ryokan Business License—with its superior legal stability and fewer operational restrictions—will give you an overwhelming competitive edge and serve as the ultimate risk hedge to protect your business.

From “Special Zone Minpaku” to “Ryokan Business (Simple Lodging)”: Key Application Standards That Change During the Transition

So, what additional standards are specifically required when transitioning from Special Zone Minpaku to the Ryokan Business (or acquiring the license fresh)?

Standard 1: Front Desk Requirement

• Special Zone Minpaku: No front desk is required.
• Ryokan Business Act: In principle, a front desk is required for face-to-face identity verification and key handover.
• 【Key Point】: That said, Osaka City broadly permits ICT-based alternatives to this front desk requirement. If you implement a system that allows real-time identity verification via video call and secure key handover through smart locks or similar technology, a physical front desk becomes unnecessary, allowing you to continue unmanned operations.

Standard 2: Building Structure and Facility Requirements

• Guest Room Floor Area: Under the Ryokan Business Act, the total floor area of guest rooms must be at least 33㎡ (though this is relaxed to 3.3㎡ per person if fewer than 10 guests are accommodated). Depending on the property, a change in floor plan may be needed to meet this standard.
• Fire Safety Equipment: This can be the biggest hurdle in the transition. In addition to the standards required under Special Zone Minpaku, depending on the scale and structure of the building, the installation of a new automatic fire alarm system is often mandated—typically representing the largest additional investment.

Standard 3: Zoning Restrictions

• Special Zone Minpaku: Under Osaka City ordinances, operation may be permitted even in certain exclusively residential zones.
• Ryokan Business Act: In principle, a license **cannot be obtained in “exclusively residential zones,”** where hotels and ryokan are prohibited from operating. If you’re searching for a property from scratch, this distinction becomes the most critical point to consider.

【Practical Guide】Preparations from Obtaining Your Ryokan Business License to Opening

Obtaining a Ryokan Business License involves proceeding methodically through the following steps.

STEP 1: 【Most Important】Preliminary Consultation with the Public Health Center and Fire Department

Before taking action based on your own assumptions, be sure to bring a complete set of your facility’s floor plans and consult with the jurisdictional public health center and fire department, explaining, “I would like to obtain a Ryokan Business (Simple Lodging) license for this property.” There, you’ll receive direct, accurate guidance from the government officials—experts in this field—on exactly what renovations and additional fire safety equipment your specific property will require.

STEP 2: Assembling a Team of Experts

Applying for a Ryokan Business License is not something you can easily accomplish alone. The key to success lies in assembling a trusted team of experts well-versed in the Ryokan Business, including a Gyoseishoshi (administrative scrivener) (a professional in application procedures), an architect (a professional in design), and a fire safety equipment specialist/construction company (professionals in construction work).

STEP 3: Design, Estimates, and Financial Planning

Based on the guidance received during the preliminary consultation, work with your team of experts to create design plans for the necessary renovation work. Using these plans, obtain quotes from multiple construction companies, finalize the additional investment required, and develop a financial plan incorporating your own funds and any financing.

STEP 4: Renovation Work and Various Application Procedures

Once your financial plan is in place, it’s time to begin renovation work. While construction proceeds, your Gyoseishoshi will prepare and submit the extensive and complex application documents to the public health center and fire department.

STEP 5: On-Site Inspection by Authorities and Receipt of Your License

Once construction is complete and your application documents have been accepted, officials from the public health center and fire department will conduct an on-site inspection. They will confirm that the facility matches the application details and fully meets all legal standards; if everything checks out, you will finally be issued your “Ryokan Business Operating License.”

STEP 6: Updating OTA Information and Commencing Operations

Once you’ve received your license, update your licensing information on booking platforms like Airbnb to reflect “Ryokan Business (Simple Lodging).” Since you’ll now be able to accept one-night bookings, be sure to revisit your pricing strategy and listing descriptions with this new target audience in mind.

Conclusion: The Ryokan Business License Is Your “Full License” for Lasting Business Success

If Special Zone Minpaku can be thought of as a time-limited “provisional license,” then the Ryokan Business License is the **”full license”** that guarantees the permanence of your business, capable of withstanding any changes in the times or environment.

Rather than fearing an uncertain future, seize it as an opportunity for business growth and build a stronger, more stable foundation. This is precisely the wise management decision needed to achieve long-term success in the massive Osaka market.

Let Our Professionals Guide You Through This “Step Up”

“Where exactly do I start with transitioning to the Ryokan Business?”

“I have no idea how much the additional construction costs will be.”

“There’s no way I can handle these complicated administrative procedures on top of my main job…”

If these concerns sound familiar, please consult with us.

We at Stay Buddy Inc. have been specialists in this field since the early days of Osaka City’s minpaku market, providing one-stop support—from property searches to obtaining licenses for both Special Zone Minpaku and the Ryokan Business.

We’ll conduct a detailed assessment of your facility’s current state and propose an optimal roadmap that clearly identifies “what specifically is missing and how much additional investment is needed” to transition to the Ryokan Business.

Together with our experienced partner Gyoseishoshi and architects, we’ll responsibly guide you through every step of your business’s valuable transition—from tedious government negotiations and complex application procedures to overseeing the necessary renovation work.

Let’s turn your uncertainty about the future into a confident opportunity for business growth.

As your strategic partner in Osaka, we’re here to help. We look forward to hearing from you.