I think the question is not as much whether it offends anyone, but whether it is appropriate, or whether it is in poor taste to chose such a place for a setting of a film, or whether the film does not exploit something that should be left alone (f.ex. the local authority stopped publicising numbers of suicides in the forest to stop attracting more potential suicides and 'advertise' the place gathering attention).
It could offend families of people who killed themselves, but since I am not Japanese, I dont know what sort of reception it received. Maybe if there is a Japanese member here, they could comment.
I don't think it's necessrily offensive as such, but its main claim to fame is the fact it uses a actual existing setting as a background, not just some imaginary location. And the film being not a great one, kind of cheapens the history of that area, which is a shame.
In the beginning there was nothing, and it exploded.
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