I want to thank Gregory Clark for expressing an opinion that needs to be expressed, particularly when everyone else seems to be striving to be politically correct. I live in Japan and many things about Japan utterly annoy me, but I feel that they have more to do with me and my relationship with Japan.
We must realize that those annoyances are rooted in the same core that makes Japan one of the most wonderful, friendly and safe countries in the world. Please remember that the "racist" trying to speak English with you is truly making an attempt to be friendly and neighborly.
Remember that the owner of a private bathhouse is attempting to protect his business.
Remember that most foreigners do not understand the customs and etiquette of many Japanese establishments and to force their acceptance of foreigners anyway will only harm their business and the traditions of their culture.
If this is such a big controversy in Otaru, then it seems to me that somebody is missing a business opportunity to operate a bathhouse that caters to sailors.