There are plenty of inexpensive pensions and hotels in Sounkyo. The army of college-age Japanese you see working in the area comes from other parts of Japan to work for the summer. They may not know a lot about the area, but most of them speak some English. If you want to stay here in July, August, or September, be sure to make advance reservations. Rates include the ¥150 onsen tax.
Note: This information was accurate when it was published, but can change without notice. Please be sure to confirm all rates and details directly with the companies in question before planning your trip.