Yanai is a small port city in eastern Yamaguchi Prefecture, about 70 km southwest of Hiroshima. It is not trying to compete with the big temple towns. Its appeal is quieter: white-walled merchant houses, old soy-sauce warehouses, and red paper goldfish lanterns hanging along the lanes.
The old Furuichi-Kanaya district is compact enough to see in a relaxed half day. Kunimori Residence and Muroya-no-sono give the streets some depth, while Yanai Nishigura keeps the lantern craft visible to visitors.
Yanai is best as a rail stop or day trip from Hiroshima, Iwakuni, or Miyajima. Time it for the Goldfish Lantern Festival in August if you can; otherwise come for a slower look at a Seto Inland Sea merchant town that escaped the usual tourist crush.