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Getting to Takayama from Tokyo via Nagoya: Take the JR Tokaido Shinkansen from Tokyo to Nagoya. This takes about 2 hours. Then transfer to the JR Hida Limited Express train to Takayama (About 140 minutes).
The festival seems to have come from a thanksgiving celebration for a bountiful harvest. The links with the Shinto Shrine of Sakurayama Hachiman Shrine go back as far as the 16th of 17th Centuries.