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Miyanoshita and Surroundings

Rising up into the mountains, the Hakone-Tozan switchback railway zig-zags 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 (0460/2-2411, fax 7-6231; ¥20,000-30,000), 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 twelve acres of gardens. Also worth popping in - if only to peek at the handsome wooden interior - is the Fujiya Hotel (0460/2-2211, fax 2-2210; ¥15,000-20,000), 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 fantastic 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 Pension Yamaguchi (0460/2-3158; ¥15,000-20,000), 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 Western-style meals.

Moving on, two more stops on the Hakone-Tozan railway will bring you to Chokoku-no-Mori Station, where the nearby Hakone Open-Air Museum (daily: March-Oct 9am-5pm; Jan, Feb, Nov & Dec 9am-4pm; ¥1500) is well worth making time for. This wide-ranging museum, spread across 70,000 square metres, is packed with sculptures; works from Rodin and Giacometti to Michelangelo reproductions and bizarre modern formations are scattered across the landscaped grounds, which have lovely views across the mountains to the sea. There's an enclave of 26 pieces by Henry Moore, a "Picasso Pavilion", which houses 230 paintings, lithographs, ceramics and sculptures by the Spanish artist and four galleries featuring works by Chagall, Miro and Renoir and modern Japanese artists such as Umehara Ryuzaburo and Takeshi Hayashi. You can rest between galleries at several restaurants or cafes - there's also a traditional Japanese teahouse.

GoraOdawara and Hakone Yumoto