KOBE –
Residents of Awaji Island, one of the Kansai region’s most popular resort destinations, are facing growing disruption from vacation rentals, with complaints involving late-night drinking, outdoor barbecues, fireworks, illegal parking and garbage disposal violations, while one property operator has been accused of destroying a warning sign installed by neighbors.
The disputes have emerged as tourism on the island continues to expand, bringing record numbers of visitors and prompting the construction of new hotels and private accommodations. While the growth has provided an economic boost, residents say the increasing concentration of short-term rental properties in residential neighborhoods is making everyday life increasingly difficult.
Awaji Island welcomed more than 1.25 million overnight visitors in the last fiscal year, surpassing levels recorded before the COVID-19 pandemic. A hotel that has operated on the island for 65 years said the recovery in tourism had been among the fastest in the Kansai region, with business currently running about 10% higher than before the pandemic.
Unlike many other Japanese tourist destinations, Awaji Island remains heavily dependent on domestic travelers. Foreign visitors account for just 23% of guests, according to a hotel representative, who said there was considerable potential for further growth if the island attracted more international tourists.
The strong demand has encouraged hotel operators to expand their investments. One established hotel company plans to open new properties from 2027 onward, including luxury accommodations targeting wealthy travelers at around 300,000 yen per night and an all-inclusive hotel offering meals and other services within the accommodation price.
Alongside these large developments, privately operated vacation rentals have proliferated across the island, particularly properties where an entire house is rented to a single group. Demand for relatively affordable accommodations has contributed to the expansion, with more than half of Hyogo Prefecture’s simplified lodging facilities, including vacation rentals, now concentrated on Awaji Island.
However, the increase in rental properties has been accompanied by a sharp rise in complaints.
During the first six months of the current fiscal year, through the end of September, Hyogo Prefecture received more than 30 complaints concerning vacation rentals and similar accommodations. Of these, 29 were concentrated in the Awaji Island region.
The complaints cover a range of problems, including excessive noise, improper garbage disposal and illegal parking, raising concerns about whether residential neighborhoods can accommodate a growing number of short-term visitors.
In one quiet residential area, neighbors described persistent disturbances at a vacation rental property that began operating about six years ago. Despite warning signs installed by Awaji City urging guests to keep noise levels down, residents said loud gatherings frequently continued late into the night.
“Sometimes the noise continues until very late, and we cannot sleep at night,” one resident said.
Video recorded by neighbors showed groups of visitors talking loudly beside nearby homes after dark. Other footage captured guests dancing during outdoor barbecues, while smoke from cooking equipment spread through the surrounding neighborhood.
Residents said groups of young adults, often around university age, were particularly likely to cause disturbances, especially when drinking alcohol.
“When groups of young men and women come and start drinking, it gets extremely noisy,” a resident said. “I understand they want to have fun, but when it happens every day, it becomes exhausting.”
The disturbances have also affected ordinary household activities.
One resident explained that guests sometimes begin preparing barbecues around noon, making it difficult to hang laundry outside because smoke and cooking odors could appear without warning.
“You never know when they are going to start, so you cannot even hang your washing outside normally,” the resident said. “It feels like you cannot live an ordinary life anymore. It is extremely stressful.”
Families staying at the properties have also caused problems. Residents recorded children shouting while playing with handheld fireworks, including occasions when fireworks were being used very close to neighboring houses.
In another incident, cooking equipment was reportedly left burning without anyone nearby, raising concerns about the possibility of a fire.
Residents also complained that guests sometimes entered neighboring properties without permission while retrieving balls that had been kicked or thrown over fences.
“People just climb over into someone else’s property to retrieve a ball,” one resident said. “I think that shows a serious lack of common sense.”
After repeated disturbances, residents contacted the police and attempted to raise their concerns directly with the rental property operator. However, they said their complaints were not properly addressed.
According to one resident, telephone conversations with the operator sometimes ended abruptly, with calls disconnected before the issues could be resolved.
Residents subsequently installed their own warning sign near the property, but alleged that the operator came to the site, knocked it down and cut it into pieces with pruning shears before leaving.
When questioned about video footage showing guests making excessive noise, the operator said it could not comment because it had not seen the recordings.
The operator also denied failing to respond to complaints, saying, “That is not the case. If something is factual, we will respond appropriately based on the facts.”
At another vacation rental property, a resident who complained about noise was reportedly told by the operator to stop interfering with the business and was threatened with legal action.
The growing disputes have prompted Hyogo Prefecture to consider stronger regulations on vacation rentals operating under the Hotel Business Act, which have not previously been subject to mandatory measures specifically addressing conflicts with surrounding residents.
Under a proposed ordinance revision, operators would be required to explain their business plans to nearby residents before beginning operations and install signs displaying contact information for the operator or responsible manager.
The prefecture also plans to introduce measures allowing authorities to issue instructions and improvement orders to operators who violate the requirements. Businesses that fail to comply could have their names publicly disclosed.
However, officials in Awaji City argue that the proposed changes do not go far enough.
A city representative said that publicly identifying operators who ignore the rules would have limited effectiveness without stronger penalties.
The city is calling for authorities to be given powers to suspend operations or revoke business permits when operators repeatedly fail to address problems.
Similar concerns have prompted other local governments in Kansai to tighten restrictions on vacation rentals.
Kyoto City plans to effectively prohibit new vacation rental operations in residential neighborhoods and certain other areas from 2027, while Osaka City stopped accepting new applications for special-zone vacation rentals in May 2026.
The restrictions reflect growing pressure on local governments to balance tourism development with the interests of residents, particularly in neighborhoods where private homes have been converted into commercial accommodations.
Some tourism industry representatives believe Awaji Island may be better positioned than other destinations to resolve the conflicts because most visitors are Japanese rather than overseas tourists.
One representative suggested encouraging vacation rental guests to eat at local restaurants and izakaya instead of holding outdoor barbecues at rental properties. Greater interaction between visitors and residents, the representative argued, could help build mutual understanding and reduce friction.
However, others questioned whether such voluntary measures would be sufficient, particularly when properties are specifically equipped with large gardens and barbecue facilities that encourage guests to spend their evenings outdoors.
They argued that the design and operation of accommodation facilities contribute directly to the problems, and that operators cannot avoid responsibility by placing all the blame on guests.
Concerns have also been raised about the suitability of establishing commercial accommodation facilities in residential areas, where homes and surrounding infrastructure were not originally designed to accommodate a constant turnover of visitors.
The disputes highlight a broader challenge facing Japan’s expanding vacation rental industry, with local governments increasingly required to regulate businesses that operate within established residential communities.
For Awaji Island, where tourism has become an important driver of economic growth, the challenge is to maintain the benefits of rising visitor numbers without undermining the quality of life of the people who live there.
Residents and local officials are calling for clearer operating rules, stronger enforcement powers and greater cooperation between accommodation providers and neighboring communities to ensure that both visitors and residents can enjoy the island without conflict.
Source: KTV NEWS