OSAKA - Hotels are springing up around Osaka's Shinsekai district, a neighborhood that once thrived as an entertainment hub for day laborers but is now drawing growing numbers of foreign tourists seeking a taste of the city's grittier side.
The area, home to the landmark Tsutenkaku Tower and bustling shopping streets, has become popular with overseas visitors attracted by its distinctive atmosphere and convenient transport links to destinations across the Kansai region.
Hotel operators are looking to cash in on the strong tourism demand, using flashy interiors, unusual accommodation options and neighborhood walking tours to entice guests.
"The area is becoming more attractive," said Kensuke Miyawaki, general manager of Anchored by Rihga Osaka Namba, which opened in April under a new brand operated by Royal Hotel.
The hotel has embraced Shinsekai's colorful character, with neon lights illuminating its restaurant and artworks by various artists decorating the lobby and guest rooms.
It has also teamed up with Tokyo-based event planning company Haregake to produce a booklet allowing guests to solve puzzles as they explore the surrounding streets.
Other hotel operators are adopting similarly distinctive approaches.
An accommodation facility opened in June by Tokyo-based Daiwa LifeNext offers shared rooms as well as guest rooms where visitors can play with model trains.
The project was developed in collaboration with Hankai Tramway, which operates a nearby streetcar service and owns the land on which the facility stands.
A major U.S. hotel operator also opened two business hotels in the area in May, adding to the growing number of accommodation options for visitors.
Meanwhile, Hoshino Resorts, based in Karuizawa, Nagano Prefecture, is expanding its efforts to introduce tourists to the district through its OMO brand of urban hotels.
The company has partnered with the operator of Tsutenkaku Tower to launch guided tours of the landmark and other activities from Wednesday, building on the popularity among foreign visitors of its existing tours of local restaurants and other attractions.
The expansion comes amid a sharp rise in hotel spending by foreign tourists in the area.
Sumitomo Mitsui Card Co. compiled an index of spending by inbound visitors at affiliated hotels in different districts, using 2021, when tourism was severely affected by the coronavirus pandemic, as a baseline of 100.
By 2025, the index had climbed to more than 50,000 in Osaka's Naniwa Ward, home to Tsutenkaku Tower, and exceeded 80,000 in neighboring Nishinari Ward.
That compared with a nationwide index of 3,803, highlighting the exceptional growth in the two districts.
Local businesses are welcoming the influx of tourists and the hotels catering to them.
Masataka Kondo, chairman of the Shinsekai neighborhood association federation, said the economic benefits of longer stays by foreign visitors were being felt throughout the neighborhood.
"The money they spend is helping the neighborhood prosper. We welcome the increase in hotels," he said.
Kondo attributed Shinsekai's growing appeal partly to efforts to strengthen the district's identity through regular events and cooperation with companies entering the area from outside.
But the hotel boom also presents challenges as Shinsekai seeks to balance its growing popularity as a tourist destination with the needs of its residents.
Hiroyuki Yagi, an associate professor of urban sociology at the University of Nagasaki, said the expansion reflected a combination of factors, including public-private efforts to revitalize tourism and development accompanying a broader trend of people moving back to city centers.
"The challenge is finding the right relationship between local residents, including workers, and tourists," he said.
