Blackbox Logo
NEWS
MENU

Japan’s sauna boom highlights struggling hot spring industry

#Market Insight

In Japan in recent years saunas have experienced a wave of popularity, yet traditional bathhouses and hot spring facilities continue to shutter their doors.

Over the past 30 years, more than 7,000 public bathhouses have closed, primarily due to soaring energy costs.Many bathhouses face rate restrictions due to long-established price control regulations.

Even with energy costs rising, these establishments can't raise prices.

New sauna establishments can avoid these restrictions due to being classified differently under business law, as well as being able to take advantage of grants introduced by the government to encourage new ventures.

Compounding the issue is the fact that many hot springs across the country operate at a loss, commonly subsidized with taxpayer money.

Closing these facilities proves difficult amidst local opposition. Under these circumstances, there is little capital for renovations or upgrades, widening the gap between saunas and hot springs further.

Source : https://diamond.jp/articles/-/321337

© 2022 Shibuya City Office All rights reserved.
Terms & Conditions