[Sangetsu]

Personally, I don't think there is so much racism in Japan. It is true that there are still a few small inns and "soap lands" which do not allow foreigners, but these are quite hard to find, and with business having slowed down throughout much of the country, even these will disappear.

Visitors to Japan will find the Japanese to be very helpful and polite, probably much more so than in the visitor's own countries.

Foreign residents on the other hand have a more difficult time. There is still discrimination when it comes to things like renting/buying a home or apartment, or getting a credit card. And even if you live in Japan long enough to be fluent in Japanese, become a permanent resident, and get a Japanese passport, you will always be a "gaikokujin" (foreign country person).