Abstract
Hinoemata is a mountain village living chiefly on tourism industry. Change in population and financial capability index show that Hinoemata does not belong to marginal village. Some businesses in the field of food production, accommodation and hot spring are operated by village government agency, and these businesses take a major role in tourism industry of Hinoemata. In these businesses, products are used as souvenirs or materials for dish of local accommodations. Production technique and employee are based on this village. Therefore, these local government businesses have brought about circular flow of economic system to this village.