Yanai City has a Seto Inland Sea climate, with mild temperatures even in winter and relatively little rain. Flower and fruit cultivation is popular in Yanai City, with carnations and miniature roses being particularly popular. Other agricultural, fishing, and commercial and industrial sectors are also thriving. The city boasts a traditional craft called the goldfish lantern, which uses Yanai Stripe dye, another traditional craft of the city. The city's famous tourist spot is the "White-Walled Townscape." The area is also designated as an Important Preservation District for Groups of Traditional Buildings, and the traditional townscape is still carefully preserved. The city also hosts famous festivals, such as the Goldfish Lantern Festival.