An employee adjusts flowers in a viewing room, where chilled encoffined corpses are delivered through

I was reading through some news headlines this afternoon and I spotted an articled titled “Japan’s Corpse Hotel“. So I clicked.

The wait time for scheduling a cremation of a loved one in Japan can take up to a week. With the overwhelming number of deaths each year and limited real estate, people are having problems storing their dead while they wait for one of the cremation services to fit them in. So what did a clever Japanese business man do? He built a Corpse Hotel.

The Lastel Hotel charges up to $154 a day for a room. Mind you, these aren’t ordinary rooms. These are refrigerated storage units in which a person can keep a loved one’s body for as long as they need to. Many find this service useful as they wait days for a cremation.

It’s as creepy of an idea, as it is brilliant. Not that death itself is creepy, but the sound of a “Hotel of the dead” just irks me.

Full source:National Post

Across from a noodle shop in a Yokohama suburb, Hisayoshi Teramura’s inn looks much like any other small lodging that dots the port city. Occasionally, it’s even mistaken for a love hotel by couples hankering for some time beneath the sheets.

But Mr. Teramura’s place is neither a love nest nor a pit stop for tired travellers. The white-and-grey tiled building is a corpse hotel, its 18 deceased guests tucked up in refrigerated coffins. “We tell them we only have cold rooms,” Mr. Teramura quips when asked how his staff respond to unwary lovers looking for a room.

The daily rate at Lastel, as it is known, is ¥12,000 ($154.33). For that fee, bereaved families can check in their dead while they wait their turn in the queue for one of the city’s overworked crematoriums.

Death is a rare booming market in stagnant Japan and Mr. Teramura’s new venture is just one example of how businessmen are trying to tap it.

In 2010, according to government records, 1.2 million people passed away, giving the country an annual death rate of 0.95% versus 0.84% in the United States, which is also the global average.

The rate of deaths is on the increase. Last year, there were an extra 55,000 dead and over the past decade, an average of 23,000 more people have died each year in Japan.

Annual deaths are expected to peak at 1.66 million in 2040 as the bulk of the nation’s Baby Boomer generation expires. By then, Japan’s population will have shrunk by around 20 million people, an unprecedented die-off for a nation neither at war or blighted by famine.

Although two decades of economic malaise has weighed on incomes, a tradition on splashing out on ceremonies means the Japanese still pay an average of ¥1.2-million on flowers, urns, coffins and other funeral expenses. It adds up to a market worth a whopping US$21-billion a year, or twice what Americans spend annually on funerals.

“There’s been a rush into the market,” says Mr. Teramura, who founded cemetery developer company Nichiryoku 45 years ago. Even Japan’s second-biggest retail chain, Aeon, rail companies and the nation’s biggest farmers association, Japan Agriculture, are getting into the business, he notes.

Mr. Teramura, 71, decided a decade ago to widen his business beyond graves to funerals and he opened Lastel last year.

Behind its flower boxframed windows, hidden away from mourners, is an automated storage system. It stores and chills encoffined corpses, delivering them through hatches and into a viewing room, day or night, whenever friends and family come to pay their respects.

Building new urban crematoriums to deal with the surge in bodies is near to impossible because nobody wants the furnaces in their backyard, explains Mr. Teramura. That not-in-my-backyard crowd is forcing cities to make do with the facilities they have, even as the body count mounts.

In Yokohama, the average wait for an oven is more than four days, driving up demand for half-way morgues like Lastel. “Otherwise people have to keep the bodies at home where there isn’t much space,” Mr. Teramura says. It also provides a captive audience to which he can market his other funeral services and wares.

Joining Mr. Teramura in the funeral rush are a slew of new entrants, some of them refugees from a shrinking wedding industry.

Entry to the industry is easy. There are no licences or mandatory qualifications. All any wannabe funeral director needs is an office and a telephone. Flowers or coffins are easy to order and ceremonial halls, hearses and monks are all for hire. In the United States, by comparison, most funeral entrepreneurs need to study for three years, including a stint as an apprentice before regulators consider handing out a licence.

In a recent poll of 2,796 funeral industry-related firms, Japan’s Ministry of Economy Trade and Industry found that a third have been in business for a decade or less.

It’s becoming a wild west market in some ways, attracting the honest operators and the not so reputable too.

“People tend to leave things to the funeral director and some people take advantage of that. So instead of a ¥100,000 coffin you may end up with a ¥1-million cask,” Mr. Teramura says.

A lack of official oversight and a wealth of cash transactions also make it a magnet for full-fledged mobsters, or yakuza, say some industry players.

A niche that the yakuza have slipped into is as brokers who introduce funeral homes to hospitals, said one funeral director, who declined to be identified. That role alone can pull in millions of dollars in commissions.

Just how fast the industry is growing is hard to ascertain.

METI in 2005 said there were 4,107 companies employing 49,079 people. Across the street at the Ministry of Internal Affairs and Communications, officials say there were 6,606 firms in 2006, supporting a workforce of 72,046.

Tokyo-based Yano Research Institute said companies positioned to succeed may be former wedding organizers able to respond to growing demand for personalized services on a tighter budget – changes that have roiled the bridal industry already. Yano predicts the funeral market will be worth ¥1.96-trillion by 2015.

As for Mr. Teramura, he’s pushing ahead with expansion plans. He pulls out his cellphone and shows a picture of an office building he just bought in another Yokohama neighbourhood. When he has finished renovating, it will be his second Lastel, with room for 40 bodies, more than double the first.
–Readm more: National Post