Japanese tourism takes a beating -- another blow to the Japanese economy

A month after Japan's worst disaster in generations, the snow in the mountains surrounding the resort town of Osawa is melting and the cherry blossoms are bursting.

Diving ducks play in a trout-filled stream near a moss-slicked waterfall, pristine open air hot springs beckon -- and not another person in sight.

The tourists that normally flood the area this time of year are nowhere to be seen.

"We've never seen anything like this," says Noriyuki Takada, the manager of the Sansuikan Inn in Osawa. "This whole area will have some real difficulties if the guests don't come back."

The empty rooms at the Sansuikan are an indication of the pain being felt by the tourism industry in Japan.

In Iwate Prefecture alone, thousands of guests have canceled trips to Japan's snow country since the March 11 earthquake and tsunami, says Takada.

Foreign tourists are also steering clear of Japan.

Arrivals this past month were just half the number of the same time last year, according to the Japan National Tourism Organization. And after an initial rush for Japanese to get home and expats to get out, Japan Airlines says that passenger volume is off by at least 25%. (read more)