In most regions during August, there is an obon dori (obon dance), Japanese families visit ancestors to pay their respects with food and gift offerings. I heard that the many colorful lantern decorations are used because it is believed to guide the spirits back to their world.
Unlike the traditional Japanese Obon dori, I just experienced our own base transformed into acres and acres of festival grounds. It was a really neat event. There was something for everybody, kids games & activities, rides, food, arts & crafts, food, drinks, vendors, food, and fireworks gallore. Thousands of Japanese people (esti. 30,000+) flocked onto the base to take part in the event every year. It was really nice to see so many local people taking advantage of the event.
Just snapped a couple photos. Fun for all.