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Rising up into the mountains, the Hakone-Tozan switchback railway zigzags for nearly 9km alongside a ravine from Hakone-Yumoto to the village of Gora. There are small traditional inns and temples at several of the stations along the way, but the single best place to alight - and even stay overnight - is the village onsen resort of MIYANOSHITA . As well as hot springs, the village has decent antique shops along its main road, and several hiking routes up 804-metre Mount Sengen on the eastern flank of the railway - one path begins just beside the station. At the top, you'll get a great view of the gorge below. Miyanoshita's real draw is its handful of splendid hotels . The Naraya Inn (tel 0460/2-2411, fax 7-6231; Y20,000-30,000), is a fabulous traditional ryokan founded in the sixteenth century, and hardly looks as if it has changed since. Guests sleep in mini-villas and there are several onsen baths dotted around the compound, which includes expansive of gardens. Also worth popping in - if only to peek at the handsome wooden interior - is the Fujiya Hotel (tel 0460/2-2211, fax 2-2210; Y15,000-30,000), which opened for business in 1878 and is a living monument to a more glamorous era of travel. Despite being the first Western-style hotel in Japan, the Fujiya has lots of Japanese touches, including traditional gardens and temple-like decorative gables. The plush, 1950s-style decor is retro-chic and the rooms are good value, especially from Sunday to Friday, when foreign guests qualify for a cheaper rate. There's also the delightful, European-style Motonamikan (formerly Pension Yamaguchi ; tel 0460/2-3158; Y15,000-20,000), roughly a five-minute walk downhill from the train station, and tucked away off the main road behind the post office - the rates here include meals. As far as eating goes, the Fujiya 's Orchid Lounge is great for afternoon tea, while its ornate French restaurant is an excellent, if pricey, choice for lunch or dinner. The Picot Bakery on the main road outside the Fujiya is a good place to pick up bread and cakes for breakfast or lunch.
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