Go behind the hotel and you'll come to Happy Valley. This name was given to the district of old, stately villas by the missionary, A.C. Shaw. Here you'll find stonewalls covered in moss and paths paved in stone. Soft rays of sunlight strike them after filtering through the thick foliage overhead. You may want to stroll slowly, while listening to the birds.

Like the Manpei Hotel, the Kyu-Mikasa Hotel reminds us of Karuizawa's past. Built in 1905 in wood, it has an entirely Western design and was, until 1970, a favorite place for politicians and financiers and cultural figures to stay. Today the building serves as a place for archives, and is open to the public. It still retains the atmosphere of its days of glory.

Karuizawa changed a great deal after World War II. In 1961, His Imperial Highness the Crown Prince and Miss Shoda Michiko (today, Their Majesties the Emperor and Empress of Japan) met on a tennis court in Kyu-Karuizawa and fell in love. This quickly started a Karuizawa boom in Japan and attracted crowds of young people. Before long, many tourists were coming to relax and have a good time—to play tennis and golf, to ski and skate in the winter, and to shop.

The Kyu-Karuizawa Ginza area, where the inns for road travelers were once located, has become Karuizawa's biggest shopping district and is packed with visitors in the summer. The street from the Kyu-Karuizawa Rotary to Nite-bashi Bridge is lined on both sides with boutiques, restaurants, souvenir stores and other shops, a total of about 500 in a distance of just 800m. Many have been open for decades. A photo studio called Tsuchi-ya opened in 1906, and its walls are decorated with old photos of people who came to escape the summer heat. Another store, Osaka-ya, sells fascinating furniture carved in the Karuizawa style. The style was first seen in the carved furnishings of the Westerner's villas, and was influenced by the Nikko style of carving that developed in Nikko, Tochigi Prefecture. The detailed hand carvings attract the eye with their beauty.

A large retail development called the Karuizawa Prince Shopping Plaza recently opened just south of Karuizawa Station. Many women come here on day trips, and shop for hours.

Karuizawa has changed gradually, reflecting the times. But one thing that will never change is that people will always want to come and spend several days here in the summer, to enjoy the clear air, the lush greenery and the gentle breezes. Western culture has blended with the natural beauty and Japanese traditions, creating a world where life is different from the ordinary, a place that continues to charm visitors.