The Kihoku Lantern Festival takes place in the port town of Nagashima in Kihoku, Mie Prefecture. Each year a large, elaborate cloth lantern is set afloat on the harbor in the afternoon. After nightfall, there is a spectacular fireworks display known as the Saiun Kujaku (Rainbow Peacock) as a backdrop to the floating lantern. From 3pm until the fireworks begin at 8pm there are performances and other entertainment on a stage.
Use the Japan Rail Pass to get here.