G8 breathes life into Japan's rugged north island

By Chisa Fujioka

TOYAKO, Japan (Reuters) - In choosing a venue for this year's G8 summit, then-Prime Minister Shinzo Abe sought to show off Japan's rugged natural beauty, famous cuisine and legendary hospitality.

The country's northern island of Hokkaido, with its dramatic Alpine scenery, volcanic lakes and reputation for excellent seafood and fresh vegetables, fit the bill.

The three-day summit that started on Monday is the biggest thing to happen to Hokkaido since Sapporo hosted the Winter Olympics in 1972, and the area could use the help.

In 2000, the region around the summit site was smothered in ashes following the eruption of snow-capped Mount Usu, forcing 15,000 residents to flee their homes.

Apart from volcanic eruptions and the occasional earthquake and tsunami, the area, about 760 km (470 miles) north of Tokyo, has also fallen victim to tough economic times.

A local dairy company was hit by a tainted milk scandal in 2000, hurting the overall business mood, while a confectioner came under fire last year for mislabelling expiry dates on cookies popular with tourists.

The luxury hotel where the leaders are meeting has also had a rocky history.

The Windsor Hotel opened in 1993 but had to shut down four years later after it -- along with many other businesses in the area -- suffered from the bursting of Japan's "bubble economy" of soaring asset prices.