GOTSU, Japan >> A hot spring area in western Shimane prefecture has been undergoing a renaissance of sorts, thanks to a unique strategy of turning the entire town into what is effectively an all-inclusive resort.

Arifuku Onsen in Gotsu, once in decline due to a shrinking and aging population and a series of natural disasters, has been revitalized through the combined efforts of private businesses and local residents.

The strategy reorganized the entire Arifuku Onsen area, known for its secluded location in the mountains, into a location that integrates the traditional functions of a Japanese inn across local businesses.

Located on the slopes of a bowl-like ravine, Arifuku Onsen is dotted with stone steps and buildings packed closely together, providing an unusual landscape.

“This surreal townscape is what makes it so appealing,” said Shigechika Hirashita, 43, an interior designer and Gotsu native. “Recently, this area has been attracting people who have never come before, such as young hitchhikers.”

Hirashita had left Gotsu to study at a furniture workshop in the United States and returned in 2011. He is among the leaders of the revitalization effort, serving as vice president of the association promoting the area while running a local inn for long-term guests.

Farthest from Tokyo

Facing the Sea of Japan with a population of about 21,300, Gotsu is a center of production for a style of roof tiles known for their reddish-brown color, which can be seen on roofs throughout the city.

A high school geography textbook once described Gotsu as “the farthest city from Tokyo,” based on the time it takes to reach Gotsu from the capital using public transportation. It’s a designation that the city has embraced — it even turned it into a selling point to attract travelers from the metropolitan area.

In the early years of the Showa era (1926-1989), Arifuku Onsen was a thriving area with about 20 inns. It gradually lost its vibrancy and, after a major fire in 2010 and devastating floods in 2013, the number of inns began to dwindle until just three remained.

The turning point came in fiscal 2020, when the city, Hirashita and others came up with a new strategy: splitting off the dining service that Japanese inns traditionally provide alongside lodging.”

The system not only reduces the manpower requirements and financial burden for the inns, but it encourages visitors to explore Gotsu, adding to the area’s revitalization.

The project was approved for a subsidy from the Japan Tourism Agency, allowing aging or abandoned inns and restaurants to undergo renovations in fiscal 2021 and 2022.

The system has been well received by overnight guests. The area drew more than 10,000 visitors in 2023, 1.6 times the prepandemic number in 2019.

Keeping the boom going

Can the prosperity be sustained?

Another aspect of revitalization that Hirashita is betting on centers on events that allow local residents to mix with guests. In late October, he was among a group that put on the first Saturday night market, which took on the ambience of a fair.

This autumn marked the launch of the Fukufuku Asaichi morning market, held monthly on Sundays. Stores from both in and out of the area sell pork miso soup, sandwiches and other items.

Young people who have recently moved to the area are also getting involved.

Taisei Nagatomo, 24, and Manami Fujita, 23, sell homemade miso and vegetables produced by local residents.

The two, from Kanagawa prefecture, moved to the area after serving as interns in the Gotsu government’s Local Vitalization Cooperator program.

“The local population is aging, so I want to help preserve and pass on those things that they have long cherished,” Nagatomo said.

He helps spread information about the area, including its traditional Iwami Kagura music and dance. Nagatomo also has plans to take over a local miso-manufacturing business.

Helping innkeepers

The approach of separating lodging and dining in the area has been particularly effective in easing the responsibilities of lodging businesses. The system is spreading in Japan, partly to address the aging of innkeepers.

The Nukabira Gensenkyo Onsen area in Kamishihoro, Hokkaido, has implemented a system that allows guests staying for consecutive nights to eat either at their lodging site or at local restaurants. Since the new approach, there has been an increase in repeat guests.

The Shimosuwa Onsen area in Nagano prefecture also has a similar arrangement between local guesthouses and nearby restaurants.

In the Shima Onsen area in Nakanojo, Gunma prefecture, local restaurants, which were open only during the day, now are open at night on weekends to serve dinner to guests.

The Japan Tourism Agency recommends collaboration in hot spring areas and provides information about collaborative arrangements around the country.