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
