News On Japan

Foreign Investment Rises in Traditional Hot Spring Town

YAMANASHI, Jul 25, 2025 (News On Japan) - Isawa Onsen in Yamanashi Prefecture, once known as the "inner sanctum" of the Tokyo metropolitan area for its popularity among group travelers from the capital, is undergoing a quiet transformation. Easily accessible from Tokyo in about 90 minutes by express train, the area has long been home to traditional ryokan inns with Japanese-style architecture and koi-filled courtyards. However, many of these ryokan are now under new ownership, with a significant portion—an estimated one-fourth—believed to be controlled by foreign capital, mainly from China.

One such ryokan, Rakuki House Kaiji, now owned by a Chinese-affiliated company, has seen a surge in guests since the end of the pandemic, benefiting from the rebound in inbound tourism. According to manager Kentaro Miya, the full ownership transition took place in 2023, as the new investors saw fresh appeal in Japan's cultural offerings.

This influx of foreign investment follows years of economic stagnation in the area, exacerbated by the COVID-19 pandemic. Many inns struggled to stay afloat, and foreign capital provided a lifeline. Some properties reportedly changed hands for prices twice as high as Japanese buyers were willing to pay. The proximity to Mt. Fuji and Isawa’s location as a convenient stop between Tokyo and Kyoto have made the area particularly attractive to overseas investors. Expert Yuji Tsuji from the Hotel and Ryokan Management Research Institute notes that while some Japanese sellers would prefer to keep ownership domestic, many ultimately decide that selling to foreign buyers is better than letting the buildings fall into disuse and decay.

Yet, despite the apparent revival of the inns, the surrounding hot spring town has seen little of the benefits. Although large groups of Chinese tourists are staying at the ryokan, few venture into the town itself. Local shops report that their customers remain mostly Japanese or nearby residents, with little engagement from the growing number of foreign visitors. Posts on Chinese social media promoting Isawa Onsen as an investment opportunity further suggest that this trend may accelerate. Local officials, such as Kazumitsu Kakuta from Fuefuki City's tourism division, hope foreign owners will cooperate in revitalizing the area in accordance with Japanese norms. But for now, while the ryokan are filling up again, the streets of the onsen town remain quiet.

Source: FNN

News On Japan
POPULAR NEWS

Large Typhoon No. 25 (Dujuan) formed near the Mariana Islands at 9 p.m. on September 16 and is forecast to strengthen as it moves north, potentially approaching the Izu Islands, eastern Japan and the Pacific coast of Tohoku during the first half of the Silver Week holiday period.

Japan's Halloween Jumbo Lottery went on sale nationwide on September 16, offering a combined top payout of 400 million yen for the first prize and its adjacent-number prizes.

A new top-tier "Supreme Class" offering fully private compartments above the level of Green Car service will debut on the Tokaido and Sanyo Shinkansen on October 1, with passengers able to experience the new seating at a demonstration booth at Shin-Osaka Station.

A Japan Air Self-Defense Force Global Hawk unmanned reconnaissance aircraft went missing over international waters about 50 kilometers north of Tottori Prefecture on September 15, with floating debris and oil later found in the area where communications were lost.

GO, Waymo and Nihon Kotsu said they aim to launch Japan's first commercial fully driverless taxi service in Tokyo during 2027, using Level 4 autonomous vehicles that can operate without a driver on board under specified conditions.

MEDIA CHANNELS
         

MORE Business NEWS

Hakone, one of the Kanto region's most popular tourist destinations, has been left with just two operating gas stations after a series of closures, prompting the town to provide more than 10 million yen in subsidies to help reopen a shuttered facility.

Japan's National Tax Agency is preparing a major overhaul of the way unlisted shares are valued for inheritance tax, a reform that could significantly affect business succession at profitable, asset-rich companies and would mark the first fundamental revision of the rules since they were introduced in 1964.

Tokyo stocks rose on September 16, with the Nikkei 225 closing at 63,923, up 438.90 points, as futures-led buying lifted the index into a high close before the Federal Reserve’s policy decision, while investors remained cautious over oil prices, rising interest rates and the Bank of Japan’s meeting later this week.

Benchmark land prices released on September 15 showed continued gains in urban areas across Kansai, led by strong increases in central Osaka and parts of Kyoto, with experts expecting the upward trend to continue for the time being while warning of growing effects on housing costs and regional disparities.

As global financial markets face shifts in liquidity and heightened volatility in 2026, the demand for high-performance brokerage infrastructure in the Asia-Pacific region has reached an all-time high.

Japan's benchmark land prices rose for a fifth consecutive year on average, with commercial land posting stronger gains as demand for hotels and other properties remained firm in major cities, according to figures released by the Ministry of Land, Infrastructure, Transport and Tourism.

Tokyo stocks ended almost unchanged on September 15, with the Nikkei 225 closing around 63,485, down about 8 points, as a rebound in SoftBank Group and selected artificial intelligence-related shares offset caution over oil above $107, rising bond yields and this week’s Federal Reserve and Bank of Japan policy meetings.

The Osaka prefectural and municipal governments said on September 14 that they have set a minimum sale price of 92.113 billion yen for the second-phase development area on Yumeshima, the site of the Osaka-Kansai Expo.