Otaru is a port city located on the western coast of the island of Hokkaido, in northern Japan. It is situated on the Sea of Japan. The city used to be inhabited by the Ainu ethnic group and the name Otaru is most probably derived from their language. Otaru means “the river flowing through a sandy beach”. The city flourished only in the 19th century, when by emperor’s decree free trade with Great Britain and the United States was allowed. Since that time Otaru has been growing in significance and today the city is called the sea gate of Hokkaido.