How a Japanese hot springs resort in Nikko is going from ruin to revival

Kinugawa Onsen thrived in the ’80s but an economic downturn saw many of its hotels and ryokans abandoned. Now it’s luring tourists back

Reading Time:4 minutes

A bath at a hot springs resort in Kinugawa Onsen, Nikko, Japan. Photo: Instagram/zuyu_and_taco

Published: 5:15pm, 18 Dec 2024

On the banks of the Kinugawa River in central Japan, 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 under way, 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 KAI Kinugawa, a high-end ryokan inn opened in 2015 by Hoshino Resorts in 2015.

The Japanese luxury hotel operator said foreign visitors now make up 10 to 15 per cent of guests year-round, with a marked uptick in Western guests. It has been popular for some years among people from China and other parts of Asia.

“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,” said Shoko Fujinaga, general manager of the inn, which is a two-hour train ride northeast of Tokyo.

The Kinugawa River is lined with hotels both revived and abandoned. Photo: Wikipedia/掬茶

During its heyday in the 1980s, Kinugawa Onsen was a popular spot for group tours. 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.