From Morioka you can either take a train or a bus. The train leaves mainly around 2:30 and 4:20 and takes either 2 1/2 hours or 3 1/2 hours depending on if you have to wait in Hanamaki. This costs about $22 or $25.
The bus leaves from in front of Morioka eki at 4:20. This also costs about $25. (but this goes just to Kamaishi, where you get off the bus in front of the eki and take another 20 minute bus to Otsuchi (the correct buses are _Q or_@___l).
Namiita Beach and Kiri Kiri Beach. Namiita = surfing (they have a rental shop). Kiri Kiri = relaxation. In Namiita, there is the cutest little tea/cake shop a little walk from the beach. It is right in front of the train stop. You can eat beautiful little cakes and drink maccha that you make in little tatami mat rooms. Feels like you went back in time.
Also, Shiroyama Park_@(___R____). Climb up the little mountain and see beautiful views of the town, mountains, and sea.
Surf, swim, hike, walk around the town and talk to the locals.
Also, although there are no "real" (natural) onsens (hot spring bath) in the area, there is a "spa" or "fake onsen" behind Mast, which is fantastic. There are six baths and two saunas on the mens and womens side. Three of the baths are outside, which are wonderful after a long day in the winter. Plus, they have a tank full of fish that you can stick your feet in "for relaxation" and to clean your feet.
Not much to buy in terms of souvenirs here, but there is a nihon-shu (sake) that is made in Otsuchi that is delicious. Just go in any liquor store and ask for Otsuchi no nihon-shu, and they should be able to help you find it.
Also, Mast has anything you could possibly need. Grocery store, a Homac, a department store, video store, shoe store, a cute little hippy/Indian store.
'''Crayon''' (_N______). the cheap cheap karaoke bar. about 6 dollars an hour for all you can drink.
In Otsuchi proper, there are no hotels. But in the Namiita beach area there is one hotel overlooking the ocean. Also, in Kamaishi there are several hotels like the Bay City Hotel and Sunroute.
Most people in this town do not speak English.
About an hour away is Tono, home of the kappas. It's a cute little town with a lot of folk history.
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