The hip side of Japan the tourists haven’t figured out yet

The neon-lit Hatoya Hotel in Ito, Shizuoka Prefecture, is one of the city’s Showa Era landmarks enjoying a new wave of attention. | LISA KNIGHT

By Brandon Presser
Bloomberg

Sep 24, 2026

When Japan shut its borders during the COVID-19 pandemic, expats and longtime friends Hillary Hewins and Blake Piper started spending their weekends in Atami, a small seaside city just a 40-minute bullet train ride from their adopted home of Tokyo.

Known during the 17th and 18th centuries for its soothing hot springs, Atami steadily surged in popularity during the four decades after World War II as a destination for Japanese holidaymakers. Sprawling concrete resorts opened, and the city center filled with lively bars, cabaret shows and other nightlife venues, all lit up by flashy neon signs.

When Japan’s bubble burst in the early 1990s, Atami’s prosperity collapsed as well. In five short years, hotel revenue dropped by around 25% and dozens of properties were abandoned. By 2011, visitation numbers had plummeted by 55% from their peak. The local population shrunk accordingly, from 50,000 residents to about 30,000 today.

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