By Donican Lam
On the banks of Kinugawa River, a row of abandoned, crumbling hotels stands like a relic of a forgotten past. A destination that once thrived as a hot spring resort during Japan's bubble economy era of the 1980s, many parts of Kinugawa Onsen have now fallen silent. But a revival is underway, driven partly by efforts to draw more foreign visitors.
Not far away, a monorail takes guests through a quiet forested landscape into the tranquil environment of Hoshino Resorts KAI Kinugawa. The Japanese luxury hotel operator, which opened the high-end "ryokan" inn in 2015, said foreign visitors now make up 10 to 15 percent of guests year-round, with a marked uptick in Western guests.
©Hoshino Resorts Inc.
©Hoshino Resorts Inc.
While it has been popular for some years among people from China and other parts of Asia, this summer saw an even split between the two tourist demographics.
"It was an unprecedented situation, and I was quite surprised myself," said Shoko Fujinaga, general manager of the inn, which is located some two hours by train northeast of Tokyo. "I believe many people are eager to come to Japan now that COVID-19 restrictions have lifted, with the weaker yen also playing a role."
Kinugawa Onsen, a glittering rival to Atami and Hakone during its heyday in the 1980s, was a popular spot for group tours given its proximity to Tokyo. During this period, it was common for employees to participate in company trips by the busload as a show of loyalty.
But the bursting of the bubble economy in the early 1990s led to a sharp decline in group travel, dealing a heavy blow to hot spring resorts nationwide.
A steam train drives into Kinugawa Station at certain times of the day for the entertainment of visitors.
A steam train drives into Kinugawa Station at certain times of the day for the entertainment of visitors.
In Kinugawa's case, significant support from the local government to promote high-value projects helped drive revitalization, with much of the work done while COVID-19 restrictions were still in place, according to Fujinaga.
Travelers relax in a footbath in front of Kinugawa Station.
Travelers relax in a footbath in front of Kinugawa Station.
"New souvenir shops and other establishments have been cropping up in Kinugawa, including the area around the station. The local government has been incredibly cooperative and supportive in these efforts," Fujinaga said.
Hoshino's Kinugawa inn has also focused on offering foreign visitors a range of cultural activities, such as making traditional geometrical wooden "kumiko" coasters or taking a Mashiko ceramics masterclass featuring the pottery of the region.
©Hoshino Resorts Inc.
©Hoshino Resorts Inc.
Shoichi Onoda, manager of the Kinugawa-Kawaji branch of the Nikko City Tourism Association, said the rise in foreign visitors has also been helped by the growing popularity of nearby Nikko, which hosts UNESCO World Heritage shrines and temples.
People dressed in traditional attire parade at Nikko Toshogu shrine in May 2024. (Kyodo)
People dressed in traditional attire parade at Nikko Toshogu shrine in May 2024. (Kyodo)
In 2007, around 81,000 inbound guests stayed overnight in Nikko, but by 2019 this number had risen to around 119,000. While visitors dipped during the pandemic, they rebounded to nearly 121,000 in 2023.
Also known for its natural landscapes and autumn colors, Nikko's appeal has even led the Ritz-Carlton Hotel Company to open a hotel in summer 2020 in the Lake Chuzenji area of the Nikko region.
"There is a clear trend of visitors to Nikko extending their trips to Kinugawa," said Onoda. "Travelers who can't afford to stay at the Ritz-Carlton realize the stunning scenery is essentially the same in nearby Kinugawa."
Liang Jiayu, who was traveling in Japan with her husband, mother and aunt, said the family decided to stay in Kinugawa to enjoy the hot springs before traveling to Nikko, finding the quiet a welcome respite from the bustle of their home city of Guangzhou in China.
Liang Jiayu (far R) and her family wait for their train in front of Kinugawa Station on Nov. 15, 2024.
Liang Jiayu (far R) and her family wait for their train in front of Kinugawa Station on Nov. 15, 2024.
"Nikko is well-known in China as a spot to see autumn colors, so many people specifically add it to their itinerary," said Liang.
©Hoshino Resorts Inc.
©Hoshino Resorts Inc.
Kinugawa, however, has been reaching out beyond Asia in its efforts to draw foreign guests.
"(Before the pandemic) our promotional efforts were largely focused on Southeast Asia, but now, moving forward, we aim to reach Europe, the Middle East, and other regions with vastly different cultural backgrounds," said Onoda.
While the number of guests at hotels in Kinugawa and the adjacent Kawaji hot spring area peaked at around 3.41 million in 1993, it had fallen to around 2.38 million by 2003.
Many hotels were abandoned, leading Kinugawa to gain a reputation for being a spot for "haikyo," or ruins, with their eerie presence becoming a draw of their own, particularly for photographers.
Jordy Meow, a French resident of Tokyo who runs haikyo.org, one of the most comprehensive websites in English on abandoned spots in Japan, first explored Kinugawa Onsen in 2011.
He said he was captivated by the "near ghost town" feel, adding that its iconic haikyo hotel Kinugawa-kan Honten, once famous for its Kappa bath -- referring to the legendary "kappa" water creature of Japanese folklore -- "perfectly captured the essence of Kinugawa's fading grandeur."
Images of the Japanese folklore "kappa" water creature are seen on the windows of the Kinugawa-kan Honten hotel.
Images of the Japanese folklore "kappa" water creature are seen on the windows of the Kinugawa-kan Honten hotel.
But Meow thinks that while influencer campaigns could help draw attention to the town's former vibrancy, "inbound tourism alone may not be enough to overcome its haikyo image without deeper government involvement."
Strolling on a bridge overlooking a row of abandoned hotels, Eva Patoureau and Baptiste Julien, a couple in their 20s visiting Kinugawa from France, said they were initially unaware of the town's haikyo reputation but gladly accepted it as their choice of stay.
The couple, who discovered Kinugawa Onsen when searching for a place to experience Japanese ryokan around Nikko, was impressed with what they saw, praising the beautiful autumnal foliage.
"It's really nice to see as it's very different from what we have in Europe," said Julien.
The ruins themselves, meanwhile, are gradually being removed as the resort gets back on its feet.
Onoda said the local government has significantly reduced the number of abandoned hotels since the immediate aftermath of the bubble bursting.
Through a regional revitalization plan supported by the national government, Nikko city has been purchasing the land that the abandoned hotels sit on, with the amount paid based on the cost of demolishing the buildings.
The former hotel sites have been repurposed into public parks and baths, with funds also used for renovation projects around the station. A now extremely popular suspension bridge was also built across a gorge near the station, offering the perfect vantage point to take in the mountains dressed in November's vibrant fall foliage.
Shane Thoms, author of the photo book "Haikyo: The Modern Ruins of Japan," visited Kinugawa Onsen for the first time in 2013 in search of ruins, but the town soon became a regular holiday retreat for him.
"I believe Kinugawa Onsen offers much more to tourists other than a haikyo destination. What makes Kinugawa especially promising is its blend of natural beauty, healing hot springs, and rich cultural offerings," said the Australian photojournalist in his 50s.
"With Japan's dynamic tourism industry increasingly catering to international tastes, Kinugawa has an opportunity to reposition itself as much more than just a destination of decay," Thoms added.
Text : Donican Lam
Photo & Video : Yuki Murayama, Donican Lam
Editors: David Hueston, Mark Smith
Video editor：Tom Shuttleworth
Content director : Yuki Murayama
Production support : Janice Tang, Kevin Chow
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