The Japan Tourism Agency is considering introducing a system in fiscal 2026 to partially subsidize the demolition of abandoned ryokan Japanese-style inns in onsen hot spring resorts and other locations.

The demolition support system would be available to business operators who will use sites where inns are demolished.

The move comes amid concerns that abandoned inns could collapse and negatively impact the appeal of tourist destinations. The agency hopes that the envisaged system will lead to regional revitalization.

In onsen resorts across the country, many large inns and hotels opened during a group tour boom after the end of World War II. However, many have closed, partly due to the collapse of the asset price bubble from the late 1980s to the early 1990s, and some are left intact due to high demolition costs.

Under the current system, the agency covers half, or up to ¥50 million ($325,000), of demolition costs as part of efforts to improve the environment for receiving tourists from abroad. Still, this support is said to be inadequate for demolishing large facilities.

The new system is expected to increase both the coverage rate and the maximum amount.

The agency also plans to support the demolition of other large, abandoned buildings that spoil the scenery of tourist destinations. It is considering applying the new system to cases in which municipalities lead demolition work and the private sector redevelops sites.

According to the agency, many business operators abandon plans to redevelop former ryokan sites due to massive demolition costs. In light of the situation, the agency believes it is necessary to expand demolition support.

The agency expects new ryokan inns to be built after demolitions.