Yufuin

Southwest of the majestic twin peaks of Yufu-dake, this tranquil village resembles a checkered quilt. Forests nestle up to clusters of galleries, local crafts shops, and rustic lodgings. Most of the year Yufuin is a relatively peaceful area, but things heat up in July and August with the arrival of national music and film festivals.

Yufuin has suffered from fewer of the pitfalls of modern tourism than the nearby and overdeveloped Beppu. But it wasn't an accident. City planners and investors went to Europe and came back with ideas about how to set up a quaint and lovely spa town—and how not to. This small town has blossomed into a quieter, more sedate getaway than its hideously garish counterpart to the east. Relatively unadorned natural baths can be found here, and a thriving arts-and-crafts industry—not to mention fantastic food.