Nara Turns To Hot Springs To Heat Up Tourism

Apr 18, 2026 | News On Japan

NARA - The city of Nara is preparing to search for geothermal sources, hoping onsen facilities can help increase overnight stays in the ancient capital, where the city has long struggled to turn day-trippers into hotel guests despite being one of Japan's best-known sightseeing destinations, ranking last nationwide in annual overnight visitors in 2021 and underscoring weak tourism spending.

To address the issue, the municipal government has launched what they call the 'Nara City Hot Spring Area Plan.'

According to city representatives, experts believe there is a strong possibility that hot spring water lies underground.

The area seen as the most promising is around Sarusawa Pond, which links Nara Park and the historic Naramachi district in central Nara.

The city has included about 8 million yen in the new fiscal year's draft budget for geological surveys related to the project.

Skepticism remains, however. Nara is not on the coast and has no active volcanoes nearby, raising questions over whether hot springs can truly be developed there.

Yet one recent case has fueled optimism.

At a planned hotel site south of the former Daijoin Garden, close to Nara Park, drilling to a depth of 600 meters in January reportedly produced water at 31.8 degrees Celsius.

Developers said the water contains sodium and carbonated mineral components, with bubbles rising naturally. They described it as smooth on the skin and suitable as a 'beauty bath.'

The hotel is scheduled to open in 2028, with hot spring water supplied to all guest rooms.

Experts say improved drilling technology means additional sources could be found elsewhere in Nara, depending on survey results.

To gauge the possible economic impact, comparisons are being drawn with Amanohashidate in Kyoto Prefecture.

That area once faced similar difficulties attracting overnight guests, but in 1999 it struck hot spring water and used the resource to encourage longer stays.

Local operators said visitor numbers rose sharply afterward, with some estimating gains of around 30%. They added that many Japanese travelers consider the presence of an onsen an important factor when choosing accommodations.

Nara officials hope to create similar benefits.

They envision visitors relaxing in hot springs before strolling through the city, dining locally or enjoying drinks around the lively Sarusawa Pond area.

'We want people to stay overnight and experience the charms of Nara with all five senses,' a city official said.

Nara City plans to conduct geological surveys this summer and submit the findings in November to a meeting that will review drilling permits.

Source: KTV NEWS

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