A yukata is a cotton robe featured in most ryokan stays. Yukata can be worn to the baths, to dinner and even when going to bed; In many hot spring villages, they are worn when walking around town as well.
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When entering a ryokan you must take your shoes off and then directly step up into the ryokan. Entering a ryokan with your shoes on or stepping or standing in the entryway where your shoes are is considered very dirty and rude.