(Purpose of the Law) Article 1. The purpose of this Law is to make contributions toward improvement of the service to foreign visitors by renovating hotels and other facilities for accommodation of tourists from abroad.

(Definition of Hotel and Hotel Business) Article 2. The term "hotel" as used in this Law refers to any lodging house having westernstyle facilities suitable for accommodation of tourists from abroad. 2 The term "hotel business" as used in this Law refers to a business catering to people in regard to their accommodation, food and drink in a hotel.

(Registration) Article 3. A person who operates or intends to operate a hotel may apply to the competent Minister for registration of such hotel.

(Obligation to Registration) Article 4. Except in the cases mentioned below, the competent Minister shall on application effect the registration mentioned in the preceding Article: (1) Where the hotel facilities in question fall short of the standard requirements mentioned in the attached table; (2) Where the applicant is a person adjudged either incompetent, quasi-incompetent or bankrupt and not restituted yet; (3) Where the disqualifying cause mentioned in the preceding item is found with any of the officers of the juristic person applying for registration; (4) Where the financial condition or credit of the applicant is such that sound management of the hotel is difficult to expect. 2 The competent Minister may refuse the registration applied for by a person who had his previous registration cancelled in accordance with the provision of Article 11, if the application is made before the expiration of one year from the date of such cancellation.

(Name of Registered Hotel) Article 5. No hotel other than those registered under Article 3 (hereinafter referred to as "registered hotel" ) shall be styled as "registered hotel" or hotel with any similar denomination.

(Public Notification of Charges) Article 6. The operator of a registered hotel shall make public its charges to be received in the manner prescribed by Ministerial Order.

(Unequal Imposition of Local Tax upon the Building used for the Registered Hotel Business) Article 7. With respect to the building used for the registered hotel business, the provision of Article 14 paragraph 2 (Unequal Tax Imposition for Reasons of Public Welfares and Others) of the Local Tax Law (Law No.110 of 1948) shall be applicable.

(Durability of Fixed Assets) Article 8. Durability of the fixed assets of a registered hotel, which becomes the basis of assessment of corporation tax, is determined in accordance with Attached Table No.2.

(Conditions on Approval) Article 9. The competent Minister may, if he considers it necessary for the attainment of the purpose mentioned in Article 1, attach conditions to his approval or alter them.

(Advice on Improvement of Equipment and Management, and Assistance to find Capital) Article 10. When the competent Minister finds it necessary for the attainment of the purpose mentioned in Article 1, he may give advice to the operator of registered hotel on the improvement of equipment and management. 2 Where the competent Minister has given advice under the preceding provision, he shall, if necessary, assist the operator to find the fund required for the improvement of equipment and operation.

(Cancellation of Registration) Article 11. If the person who operates or intends to operate a registered hotel comes under any of the following items, the competent Minister may cancel the registration of the hotel concerned: (1) When he has violated this law, and order issued under this Law, or any of the conditions of approval under the provision of Article 9; (2) If he fails, without good reason, to start the business within six months after the registration of his hotel under Article 3; (3) When he has come to fall under any of the items in Article 4 paragraph 1 (including cases where this applies mutatis mutandis in Article 12 paragraph 2).

Article 12. In the case of transfer or lease of the whole or a part of a registered hotel, mandate of its management, or merger of corporations engaged in the business of registered hotel, if no approval has been obtained on such acts from the competent Minister, the registration shall be deemed to be cancelled. 2 Concerning the approval in the previous paragraph, the provisions of Article 4 shall apply mutatis mutandis.(However, in the case of transfer or lease of the whole or a part of the registered hotel, mandate of its management or merger of the corporations engaged in the business of registered hotel, the same Article paragraph 1 item 1 shall be excepted). In this case, in the same Article "the registration mentioned in the preceding Article" shall read "the approval of the preceding paragraph," and "shall effect the registration" shall read "the approval shall be given."

Article 13. When the operator of a registered hotel without obtaining approval of the competent Minister has discontinued or suspended the whole or a part of his business, or the corporation engaged in the business of a registered hotel was dissolved, the registration shall be deemed to be cancelled, except the cases falling under any of the following items: (1) Periodical stoppage of business according to seasons upon reporting thereon to the competent Minister; (2) Temporary stoppage of business on account of repairs, extension or calamity rehabilitation upon reporting thereon to the competent Minister.

(Additional Collection of Tax) Article 14. When the registration has been cancelled according to the provisions of Article 11 or the registration is deemed to have been cancelled according to the provisions of the preceding two Articles, the competent Minister may consider that the provisions of Articles 7 and 8 have not applied. This, however, shall not apply where extenuating circumstances exist. 2 In case the provisions of Articles 7 and 8 are deemed not to have applied in accordance with the provisions of the preceding paragraph, the unpaid amount of the local tax and the corporation tax shall be collected. 3 Matters necessary for implementation of the preceding two paragraphs shall be provided for, in respect to the corporation tax by Cabinet Order, and in respect to the local tax by by-law.

(Succession of Registered Hotel Business) Article 15. In case the business of a registered hotel has, by reason of the death of its operator passed to his successor, the latter shall, within one month from the date of the former's death, report the fact to the competent Minister.

(Report) Article 16. When any equipment installed for the use of registered hotel business is altered or when the competent Minister finds it necessary, he may call for a report from the operator or other persons connected with the hotel.

(Hotel Council) Article 17. For the proper operation of this Law, a Council on Hotel Business (hereinafter referred to as "the Council" ) shall be set up in the Ministry of Transportation.

Article 18. To take any of the undermentioned actions, the competent Minister must refer the matter to the Council for advice. But where he decides to refuse registration or approval, or to cancel the registration on the ground mentioned in Article 4 paragraph 1, item (2) or (3)(including cases where this applies mutatis mutandis in Article 12 paragraph 2) the matter need not be referred to the Council: (1) To register, or to give approval under this law; (2) To cancel the registration under Article 11 (including cases where this applies mutatis mutandis in Article 28); (3) Disposition under Article 14 paragraph 1 (including cases where this applies mutatis mutandis in Article 28); (4) To make decision on an appeal against any of the actions mentioned in the preceding three items. 2 Among the matters enumerated in the preceding parapragh, those which the Council considers to be of no importance, may be dealt with by the competent Minister without referring to the Council. 3 The Council may make representations to administrative departments concerned on matters concerning the promotion of Hotel Business either in foreign or in Japanese style.

Article 19. The Council shall be composed of ten members.

Article 20. The members of the Council shall be appointed by the competent Minister as follows: (1) Four persons of learning and experience in hotel business; (2) Three persons who are able to be regarded as representatives of tourist industry organs; (3) One official in each of the Ministry of Transportation, Ministry of Construction and Ministry of Welfare.

Article 21. The term of office of the Council members mentioned in (1) and (2) above shall be three years, provided that the term of office of the member appointed to fill a vacancy shall be the remaining term of his predecessor. 2 A member is eligible for re-appointment. 3 The terms of office of members to be appointed upon the creation of the Council who are persons mentioned in (1) and (2) in the preceding Article shall be determined by the competent Minister in such a manner as the terms of their office are divided into three groups, the first two members for one year, the second two members for two years and the third three members for three years. 4 The service of the Council members shall be of part time service.

Article 22. When the competent Minister finds that a member of the Council cannot attend to his duties on account of mental or physical weakness, or neglects his duties, or is guilty of misconduct in connection with his duties, he may remove such member from office with the approval of the Council.

Article 23. The Council shall have a chairman elected by mutual votes of the members. 2 The Chairman shall superintend the whole business of the Council. 3 The Council shall designate beforehand one of the members as deputy chairman who shall take the place of the Chairman in case the latter is prevented from attending to his duties.

Article 24. Upon the receipt of an application under this Law for registration, or approval, the competent Minister shall refer the matter without delay to the Council for its advice in conformity with the provisions of Article 18 paragraphs 1 and 2. 2 The Council shall begin its deliberation on the matters referred thereto under the preceding paragraph within seven days from the date of reference and make its decision on them within 60 days from such date.

Article 25. The Council may not open its session and make decisions, unless the majority of the member are present. 2 The business of the Council shall be decided by a majority vote of the members present. In case of a tie, the Chairman shall have the casting vote. 3 Any member who has a special interest in some particular matter before the Council shall refrain from voting thereon, if the Council has so decided.

Article 26. Before taking decision on the proposed cancellation of registration under Article 11 (including cases where this applies mutatis mutandis in Article 28) or on the actions stipulated in Article 14 paragraph 1 (including cases where this applies mutatis mutandis in Article 28), the Council shall hold public hearing, giving a previous notice of the date and and place thereof to the party who is carrying on or intends to carry on the registered hotel business concerned. The party who is carrying on or intends to carry on such registered hotel business or his representative may state opinion or produce evidence before the Council at such public hearing.

Article 27. The necessary matters concerning the Council other than those provided far by this Law shall be regulated by Ministerial Order.

(Registered Inn Business) Article 28. With regard to Japanese hotels with the facilities for foreigners to put up at, but which are distinct from regular hotels (hereinafter referred to as "inn" ), the provisions of Article 2 (Definition of Hotel and Hotel Business), Article 3 (Registration), Article 4 paragraph 1 item (1), and paragraph 2 (Obligation to Registration), Article 5 (Name of Registered Hotel "), Article 6 (Public Notification of Charges), Articles 8 to 11 inclusive (Durability of Fixed Assets, Conditions on Approval, Advice on Improvement of Equipment and Management, and Assistance to find Funds, Cancellation of Registration), Article 14 (Additional Collection of Tax) and Article 16 (Report) shall apply mutatis mutandis to the establishments. In this case, terms and phrases appearing in those provisions shall read as follows. hotel" as "inn," "hotel business" as inn business, "registered hotel" as "registered inn," "registered hotel business" as "registered inn business," in Article 4 paragraph 1 item (1) "Attached Table I" as "Attached Table III," and in Article 11 item 3 "any of the items under Article 4, paragraph 1 (including cases where this applies mutatis mutandis in Article 12 paragraph 2)" as "Article 4 paragraph 1 item 1."

(Delegation of Power) Article 29. Part of the powers given to the competent Minister under this Law may be delegated to administrative departments in accordance with procedures as defined by Cabinet Order.

(Petition) Article 30. Any person who is dissatisfied with the action taken by the administrative offices under this Law may present a petition to the competent Minister.

(Penal Provisions) Article 31. A person who has violated the provisions of Article 5 (including cases where this applies mutatis mutandis in Article 28) is liable to a fine not exceeding \30,000.

Article 32. Any person who falls under any of the following items is liable to a fine or "karyo" (minor fine) not exceeding \10,000: (1) A person who has failed to make public notifications in Accordance with Article 6 or made a false public notification (including cases where this applies mutatis mutandis in Article 28); (2) A person who has failed to observe the conditions imposed under the provisions of Article 9 (including cases where this applies mutatis mutandis in Article 28); (3) A person who has neglected to make a report stipulated in Article 15 or made a false report; (4) A person who has not reported in conformity with the provisions of Article 16 (including cases where this applies mutatis mutandis in Article 28) or made a false report.

Article 33. In case the representative, agent or employee of a corporation or of any individual has, in the course of his principal business, violated any of the provisions of the preceding two Articles, the principal shall, in addition to the person who has actually committed the offence, be liable to the fine or "minor fine" prescribed in the respective Articles.