Otaru Tenguyama occupies the northern slopes of 532-metre Tenguyama in Otaru City, Shiribeshi Subprefecture, within the region known as Donan or Southern Hokkaido. The ski area sits just 3.3 kilometres southwest of central Otaru, perched directly above the historic port city that faces Ishikari Bay and the Sea of Japan. The base station at 122 metres elevation is a 15-minute drive from Otaru's canal district, whilst the 532-metre summit offers panoramic views across the city, bay, and on clear days the Shakotan Peninsula and Shokanbetsu Mountain Range. The mountain functions as Otaru's symbol, visible from the waterfront and accessible enough for half-day missions.

Otaru city (population approximately 110,000) spreads along the coast 36 kilometres northwest of Sapporo, Hokkaido's capital. Once a major financial centre during the Meiji and Taisho eras (1868-1926), Otaru now thrives on tourism, glassworks, sake breweries, and seafood markets housed in century-old canal-side warehouses. Sapporo sits 36 kilometres southeast and serves as the primary regional hub. The resort location within city limits makes lodging, dining, and transport straightforward compared to isolated mountain resorts. Otaru Station connects directly to the ski area via 20-minute local buses departing from the station forecourt. Niseko's Hirafu village lies 68 kilometres southwest.

Road access from Sapporo follows the Sasson Expressway, a 38.3-kilometre motorway linking Sapporo Junction to Otaru Interchange in approximately 40 minutes. From Otaru IC, Tenguyama sits 10 minutes south via local roads. The drive from central Otaru takes 15 minutes without traffic. Kiroro (28km south), Sapporo Kokusai (22km east), and Teine (32km southeast) all fall within 40-minute drives, enabling multi-resort powder chasing from an Otaru base. Route 5 provides the main coastal highway connection. Free parking at the base makes driving convenient for those with rental vehicles. Google Maps occasionally flags Route 1 past Asari towards Kokusai as closed when it remains open during daylight hours.

New Chitose Airport sits 72 kilometres south of Otaru, a 75-minute journey via JR Rapid Airport trains that run every 15 minutes during daytime. The train costs 2,040 yen one-way and continues through Sapporo (40 minutes, 800 yen from Otaru) before reaching the airport. Two trains per hour extend to Otaru, providing seamless connections from touchdown to town. Airport buses run less frequently with journey times around 2 hours 30 minutes. From Sapporo Station, rapid trains reach Otaru in 30-35 minutes or locals in 45 minutes. Otaru Station sits 2.2 kilometres from the ropeway base station, bridged by 20-minute local buses or 10-minute taxis. The resort operates no dedicated shuttle services, relying on municipal transport and private vehicles for access.