The Kinugawa Onsen district in Tochigi Prefecture is one of the top three hot spring resort areas in Japan, historically known for its hot spring sources that date back to the late 1600s. From the mid-1700s the area became popular with feudal lords and Buddhist monks as a stopover during a pilgrimage to Nikko. The onsen became accessible to the general public in the late 1800s and Hotel development took off in the 1920s, making it a leading destination for large-scale hot spring resorts, with its accessibility from Tokyo improved by the Kinu Express after WWII. quickly making this one of the leading large-scale hot spring resort areas in Japan.
Fast forward to the 1970s when the asset bubble collapsed, the tourism industry suddenly declined. For more than 20 years The district is now facing a serious problem with abandoned and unsafe hotels, as the city of Nikko has identified 16 abandoned hotels and ryokans in need of attention, with three in a dangerous state of disrepair and their owners nowhere to be found.
As land values in the area continue to decline, the city is facing difficulty in funding the costly demolition of these abandoned hotels. Although the Japan Tourism Agency provides financial assistance for the demolition of abandoned hotels and buildings in tourist areas, Nikko City has been unable to qualify for aid due to the difficulty of repurposing the land after demolition. Leaving these abandoned hotels to decay is also not an option as they pose a danger to the public.

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