Not all business will close on New Year’s period (Dec. 31 – Jan. 3) in Japan. Maybe 30 years ago most businesses did close during New Year’s period in Japan. But still see noticeable number of businesses will be closed during New Year’s period.
Most business will be open during Obon period. However, it will be hot and muggy during Obon period. Trains and roads will be very busy during Obon period. Most tourist attractions will be very busy with long wait during Obon period. Many people do take time off from work during Obon, and same time kids are in summer break from school. Places get very busy during Obon.