The Kappa Onsen Hotel (Kanugawa Kan Hotel) was built in the 1990s when the Kinugawa region was quite attractive to tourists because of numerous famous shrines and hot springs. Construction of huge spa and onsen hotels increased, which led to a total facelift of the town and the insidious end of tourism. Businesses had to close, a local bank followed, as well as the big hotels. Kappa Onsen Hotel closed its doors in 1999.
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