On September 14, 1984 the 1984 Otaki earthquake caused a section of Mount Ontake to crumble and flow into the Ōtaki Valley, with 29 people reported dead or missing and 87 homes destroyed.

Though tourism remains the primary industry in Ōtaki, tourist numbers (including skiers and worshipers) have declined in recent years.

Ōtaki is struggling economically, due in large part to public debt accrued through the building and management of Ontake 2240 ski hill.

For 2008 roughly 3/4 of Ōtaki's annual budget is slated for administrative and financial operations, with almost a quarter of this being used to pay back public debt.

Major cuts have been made to the salaries of village employees and to money spent social, cultural, and educational activities.