No city likes to be second. But by quirks of history, geography and fate, many countries have a runner-up city, an almost-but-not-quite city, a city forever in the shadow of its preeminent rival. In Japan, that dubious honor goes to Osaka.

It wasn’t always so. For centuries, the capital of Japan was Kyoto, 35 miles from Osaka. Kyoto held the seat of power while Osaka was the economic hub. The center of gravity began to shift to Tokyo (then known as Edo) in the 18th century, and in 1868 Tokyo formally became the nation’s official capital.

Osaka’s rivalry with Tokyo has simmered ever since, fueled further by differences in temperament, dialect and general outlook on life. Osakans think of themselves as outgoing and passionate while Tokyoites are regarded as reserved and disciplined. The Osaka dialect is lilting and harsh, whereas Tokyoites tend to speak with more refinement and consider their dialect standard Japanese.

The rivalry gave rise to stereotypes. Osakans are reputed to be bad drivers, perhaps overstating it, but the traffic certainly seems more chaotic in Osaka. Also, Osakans are regarded as obsessed by food, encapsulated by the popular local phrase kuidaore: “Eat until you pass out.”

Downtown Osaka divides into two main areas: Kita (meaning north) and Minami (south). The iconic Umeda Sky Building stands in Kita, the main business and administrative district. Minami is renowned for its restaurants, shopping and nightlife.

At the heart of Kita sits Osaka Railway Station, the fourth-busiest in the world. The station and the surrounding area have seen huge redevelopment since 2009. Shiny new commercial buildings tower above the platforms, and the former rail yards to the north of the station transformed into a new high-rise district, Grand Front Osaka.

Grand Front Osaka commercial complex, built in a former rail yard © CHECCO | DREAMSTIME.COM

With the first phase complete, the next phase of redevelopment aims to transform the remaining rail yard adjacent to Grand Front Osaka into a desperately needed public park. For now, downtown Osaka remains relentlessly urban, with densely packed buildings threaded through with highways, waterways and train lines.

Although Tokyo is more than three times larger in terms of population, Osaka hums with palpable around-the-clock energy. This dynamism translates into economic performance. Osaka’s gross domestic product outranks the GDP of Thailand, while the GDP of the Kansai region (in which Osaka lies) exceeds countries such as Switzerland and Sweden.

Much of Osaka’s wealth flows through Hanshin Port, built on a cluster of manmade islands in Osaka Bay. The port suffered greatly in the Great Hanshin Earthquake of 1995, which severely damaged 120 of the 150 quays. Despite that catastrophic setback, the port rebuilt and once again operates as one of the busiest in Asia, with more container capacity than any other Japanese port.

The city’s most significant infrastructure project remains the construction in the early 1990s of Kansai International Airport, also built on artificial islands in Osaka Bay. Three mainland mountains were moved — literally — to provide the landfill for the first of the islands, on which the initial runway and the terminal buildings opened in 1994. (The airport survived the Great Hanshin Earthquake the following year, unscathed.)

Ten years later, developers constructed an adjacent island to accommodate a second runway, coming into operation in 2007. Thanks to its offshore location, the airport operates around the clock and already established itself as the third-busiest cargo hub in Japan (after Tokyo’s two major airports). The airport was privatized in 2015 in a deal worth $18 billion, and a Japanese-French consortium now operates the facility.

In an increasingly globalized world, Japan’s economy tends to be perceived as insular and hasn’t always welcomed inward investors. Osaka aims to change that with a one-stop agency, the Osaka Business and Investment Center.

Established in 2001, O-BIC offers a range of services to simplify and streamline the process of investing in the local market, including free temporary office space for up to six months; advice on bureaucracy; public relations support; and referral to appropriate legal, real estate and recruitment agencies.

Osaka’s competitive advantages over Tokyo include significantly lower office and housing costs (monthly rent is typically 35 percent cheaper than in the capital), lower average salaries for employees and a diversified local economy offering a wide range of opportunities.

After centuries of rivalry, it is unlikely Tokyo’s mantle as Japan’s premier city will be challenged any time soon. But in recent years Osaka emerged from Tokyo’s shadow, forging its own distinctive presence on the world stage.

Things to Do in Osaka

At 568 feet tall, the Umeda Sky Building ranks as the 19th tallest building in Osaka, but the top-floor Floating Garden Observatory, which bridges twin towers, offers the best 360- degree view in the city. Be warned: The building’s distinctive shape, which made it one of Osaka’s most recognizable modern landmarks, can also create a bit of a wind tunnel — hold on to your hat!

Look for other bird’s-eye options in the city. Close to the city zoo, immediately south of downtown, find the Tsutenkaku Tower, an integral part of Osakan life since 1912. (Fire destroyed the original; the current tower dates from 1956.) Enjoy fine views from the observation deck, 300 feet up. The tower itself plays an important nightly role, proclaiming the following day’s weather forecast through the sequence of red, blue or white lights shining at the top (for example, two white lights for clear; two blue lights for wet; red and white for partly cloudy).

Discover another excellent vantage from the 350-foot Ferris wheel integrated into the HEP Five shopping mall, with breathtaking views of the downtown cityscape, especially at night.

For a scenic experience particularly magical after dark, take a voyage along the Dotonbori (or Dotombori) Canal, gaudily lined with neon billboards and shop signs which transform the water into a kaleidoscope of color. The most famous billboard — the Glico running man, advertising Glico candy in the same spot since 1935 — has become one of the symbols of Osaka. A typical sightseeing cruise lasts 90 minutes and costs around $27 per adult.

Osaka Castle © ATOSAN | DREAMSTIME.COM

The historic focal point of Osaka lies east of downtown: the imposing Osaka Castle, set within extensive grounds (a rare expanse of greenery in this city) behind formidable walls. The original castle was built in the 16th century but has periodically been damaged or destroyed throughout its history due to war or accidents. (For instance, a gunpowder mishap caused a major fire in 1660.) Most recently it was largely leveled during World War II, only restored to its current glory in 1997. The top of the Main Tower offers great views, and in the castle museum visitors have the opportunity to dress as a samurai and pose for photos.

To the west of downtown, on the shore of Osaka Bay, redevelopment of part of the port area resulted in several major visitor attractions, including Universal Studios Japan (with its immensely popular Harry Potter attraction) and Osaka Aquarium Kaiyukan (famous for its whale sharks).

CHECKING IN WITH

STEPHEN A. ZURCHER, dean, Kansai Gaidai University
AKIO “ARTHUR” MATSUMOTO, president, LS7 Corp.
HELEN HWANG, advisor to American Chamber of Commerce Japan Kansai

What opportunities does Osaka offer American investors?
ZURCHER: Osaka is well-known for its entrepreneurial spirit, which can be seen in its large number of small- and medium-sized enterprises. The Osaka area is surrounded by the cities of Kyoto, Nara and Kobe, making it the cultural heart of Japan.

What are the advantages and disadvantages of Osaka compared to Tokyo?
ZURCHER: Japan has an over-concentration of government and business activity in the Tokyo area, and Tokyo hosts most of the headquarters of Japanese and foreign companies in many sectors. This can be considered an advantage Tokyo has over Osaka. On the other hand, competition and costs of doing business are higher in Tokyo than in Osaka. Many large companies are actively diversifying their operations across the Tokyo and Osaka regions for better coverage of the Japanese market.

What cultural differences should American investors be aware of when doing business in Osaka?
ZURCHER: Osaka, of course, is a part of Japan, and hence the cultural differences, such as the style of doing business here as opposed to the United States, are quite numerous. But in contrasting Osaka with Tokyo, Americans will find doing business in the Osaka area tends to be easier than in Tokyo. This is because, relatively, the Osaka business style tends to be more open and engaging than in the Tokyo area.

What are the key future developments to look out for?
MATSUMOTO: We are constantly thinking about employment, particularly of young people. In the short term, tourism is important. Kansai aims to attract half of all visitors to Japan. In order to make it possible, we will have to increase accommodation. New hotels and minpaku [accommodation in private homes] will be important.

Which attractions in Osaka do you recommend visiting?
HWANG: Take a scenic river cruise to Osaka Castle, a great backdrop for a been-in-Osaka signature photo. Wear your Hogwarts gown and scarf and try the butter beer at the Harry Potter attraction at Universal Studios Japan. Sipping a coffee in a pod seat, overlooking a clear sunset from the Umeda Sky Building with your loved one makes any romantic sigh. There’s shopping, shopping, shopping in the immediate vicinity of the downtown Umeda train station area.

Osaka Info to Go

The international gateway for Osaka and the Kansai region is Kansai International Airport (KIX), built on an artificial island in Osaka Bay, 24 miles southwest of downtown. There are excellent connections to the city by rail (approximately 50 minutes). The old Osaka/Itami International Airport (ITM), located about 25 minutes by car from downtown, now primarily serves as a hub for domestic flights.

Osaka: Just the Facts

Time Zone: GMT +9
Phone Code: Country code: 81 City code: 66
Entry/Exit Requirements: All U.S. citizens require a passport valid for the duration of their visit to Japan and an onward/return ticket. U.S. citizens are eligible for visa-free entry on stays of up to 90 days. Visa-free entry does not permit you to work in Japan, and you cannot change to another visa status during your stay. If in doubt, contact the Japanese Embassy before embarking on your visit.
Currency: Yen
Official Language: Japanese. Only a minority of Osakans speak English, though written English is common on public transport and in shops and restaurants.
Key Industries: Electronics, pharmaceuticals, hightech industries, finance

Where to Stay in Osaka

Cross Hotel Osaka Discover this smart, good-value hotel close to the fashionable entertainment district on the banks of Dotonbori Canal. 2-5-15 Sinsaibashisuji, Chuo-ku $$$

Hilton Osaka In a great central location right beside Osaka Station and adjoining a major shopping mall, the Hilton’s upper floors offer panoramic city views. 1-8-8 Umeda, Kita-ku $$$$

The Ritz-Carlton, Osaka Classically stylish with spacious rooms and set in a strategic location, The Ritz-Carlton was purposefully designed to provide a tranquil haven amid the bustle of the city. 2-5-25 Umeda, Kita-ku $$$$

Restaurants in Osaka

Fukutaro Osaka-style okonomiyaki, savory pancakes, are a must-eat during your visit. Many varieties, always tasty. The main Fukutaro outlet in Namba is justly popular. 3-17 Sennichimae 2 chome, Chuo-ku $$

Kaiseki Tama Kaiseki is a traditional multicourse meal, part cultural performance, part near-religious experience. Expensive — but worth it for special occasions — Kaiseki Tama is one of the best in town. 1-13-17 Itachibori $$$$

Kani Douraku Dotombori Honten This popular chain of sushi restaurants specializes in crab, hence the trademark model of a giant crab above the entrance. There are several Osaka outlets; Dotombori Honten is the original. Dotonbori Canal $$$