Abstract: In recent years, investment in Japan’s homestay industry has been favored by Chinese investors. It is also a leading form of tourism transformation and upgrading, providing new opportunities for Japan’s economic revitalization and Chinese outbound investment. However, due to practical factors such as the introduction of the new Japanese homestay law and the impact of the COVID-19 epidemic, there have been some problems in the investment project of Japanese homestay, such as the increase of investment cost, the interruption of funds and the “cultural barrier”. Therefore, investors can avoid the risk of uncertainty through the insurance function, build diversified investment mode with innovation, break the “cultural barriers” by increasing publicity, and take advantage of China’s market position as a “big consumer country” to seize the opportunity to invest in homestays in Japan, and continuously form a risk management mechanism for foreign investment.

Key words: COVID-19, homestay investment, opportunities, investment strategy