Bathhouses Raise Alarm as Industry Crisis Deepens

このページを日本語で読む

The ongoing turmoil in Iran is reaching an unexpected corner of Japan: local public bathhouses. A sharp rise in the price of heavy oil, which is often used to heat bathwater, is putting severe pressure on their finances.

These bathhouses have already been declining by around 5% each year across the country, and shrinking profits are pushing many operators into increasingly difficult conditions. If fuel costs continue to rise, even more closures could follow. What were once beloved community social hubs are now struggling to stay afloat.

Deepening Strain

On April 9, the National Federation of Public Bathhouse Associations explained the severity of the situation at a meeting with ruling Liberal Democratic Party lawmakers.

The group reported that heavy oil prices had climbed to 1.4 to 1.5 times their previous levels, making it extremely difficult for many operators to keep their doors open. Citing a wave of temporary closures and reduced operating hours driven by soaring fuel costs, the federation submitted a formal request for government support.

*Inside a bathhouse in Kanagawa Prefecture. (©File photo/Japan Forward)*

A survey released by Teikoku Databank on April 11 showed a similarly bleak outlook. More than 60% of operators reported worsening performance as of the end of March 2025 (preliminary figures), the highest level since the COVID-19 pandemic.

Industry-wide sales are expected to fall to around ¥27 billion (around $170 million), roughly half of the previous year's ¥49 billion. The share of companies reporting declining profits has also climbed to around 30%, the first time in eight years. Heavy oil costs, which account for a large share of operating expenses, are rising faster than revenues, leaving businesses unable to keep up.

Long-Term Decline

Public bathhouses were once a central part of community life, but they have been in steady decline for decades. The spread of home bathrooms, a shortage of successors, aging facilities, and competition from large "super sento" spa complexes—with their extensive amenities and dining options—have all contributed to this decline.

According to the federation, the number of bathhouses has fallen to 1,562 in 2025, down roughly 90% from a peak of 17,999 in 1968. At the current rate of decline, around 5% per year, the number could fall below 1,000 within the next decade.

The industry also faces a unique constraint that limits its ability to adapt. Public bathhouses are considered to serve a public welfare function, and prefectural governments set a cap on bathing fees. In contrast, large super sento facilities fall under a separate "other public baths" category in Japanese law and are free to set their own prices. As a result, traditional bathhouses lack this flexibility, making it difficult to pass rising costs on to customers.

The federation's secretariat warned that if fuel prices remain high, the industry's difficulties could deepen further.