The Kinugawa Onsen was once known as a nice onsen resort convenient from Tokyo. During Japan’s “bubble economy” of 30-35 years ago, around 3.41 million tourists visited this area every year.
During that time, there was a surge of group travelers, including those taking part in company trips. Quite a lot of new hotels and ryokan were built to meet such demand.
However, after the bubble burst, the economy took a dive and fewer companies arranged trips for their employees. In addition, with more and more other types of leisure and super sento bathhouse prevalence, tourists visiting Kinugawa Onsen gradually decreased in number.

Initially built with large sums of investment money, the hotels and ryokan struggled to keep their heads above water. The final blow came when the local banks that supported the region went bankrupt. Additionally, upon sustaining damage from the Great East Japan Earthquake and from torrential rains and floods, they were ultimately forced to shut down their businesses for good.

Why are the buildings still there?

That’s because a considerable amount of money is needed to demolish the buildings, and many of the owners have vanished. As the demolition should otherwise be funded by citizen tax money, it is in reality difficult. And the fact that some abandoned buildings are located above hot spring sources, or adjacent to national routes and rivers, also make demolition difficult.

Source - https://att-japan.net/en/articles/504


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