Nara wooing tourists away from Kyoto and Osaka

PHOTOGRAPH BY ALAN SOLOMON/CHICAGO TRIBUNE

Nara’s Great Buddha, parts dating to the 8th Century, extends its message in massive Todaiji Temple, largest of the world’s wooden structures.

With the cost of hotel rooms rapidly rising in central Osaka and Kyoto prefectures amid overtourism, Nara prefecture is drawing attention as an attractive alternative.

Tourists previously visited Nara mainly for days trips because of its accessibility from Osaka and Kyoto. But in recent years, Japanese and global companies have been opening hotels and other lodging sites in Nara one after another, changing the flow of tourists in the Kansai region.

In Nara city, Accor Group of France opened Novotel Nara in September 2024. Central Japan Railway Co. (JR Tokai) is scheduled to open Hotel Nei Nara in fiscal 2030.

Hoshino Resorts Inc. will open the Hoshinoya Asuka hotel in Asuka village in 2027. The grounds are designed to better convey the scenery of the Asuka area, including a garden space that evokes stepped rice paddies. The company also plans to open a luxury hotel in 2026.

“Nara prefecture has lots of historic resources with more than 1,000 years of history, so it has the ability to attract tourists from all over the world,” said company President Yoshiharu Hoshino.

Nara has a number of visitor sites, including Nara Park and Todaiji Temple, home to the Daibutsu, one of the world’s largest bronze statues of the Buddha. The area is easy for tourists to access by train.

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According to the Health, Labor and Welfare Ministry and other sources, in fiscal 2018 there were 9,400 guest rooms in Nara, the smallest number among Japan’s 47 prefectures. By fiscal 2024, that number grew to about 10,400, and the prefecture is aiming for 12,000 rooms.

With overtourism becoming an increasingly serious issue in Osaka and Kyoto, Nara’s appeal has grown. An Australian visitor who stayed in a Nara hotel said the area was quieter than Kyoto and that the city was beautiful.

While hotel rates in Osaka surged during the 2025 Osaka-Kansai Expo, expo visitors who lodged in Nara commented on social media, saying, “It’s an unknown, good place because hotel rates are reasonable,” and “Access (to Osaka) was better than I expected.”

Public transportation to Nara has also become increasingly convenient. In March, West Japan Railway Co. (JR West) began regular, direct train service from various Osaka stations. Another line will make it it easier for people in the Tokyo and Chukyo areas to visit the prefecture.

“We feel a sense of success that the number of overnight visitors has increased,” said a Nara government official. The expo “prompted more people at home and from abroad to learn about the appeal of Nara prefecture.”

Nara’s government believes boosting the appeal of accommodations there would include, for example, enhancing its nightlife.

“The key is finding a way to establish places where tourists can enjoy the food culture and experiences particular to Nara prefecture,” said Takao Okuyama, an expert on the hotel industry.

See more:Focus on Japan

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