I'm pretty sure this place exists in the real world. Does anyone know the name of the real samurai village tourist attraction?
Toei Kyoto Studio Park (東映太秦映画村, Tōeiuzumasaeigamura) is where this movie was shot. It's literally the only theme park in Japan that also doubles as a film set for jidaigeki films.
From an article containing an interview with Seizo Fukumoto:
In “Uzumasa Limelight” he plays an elderly kirare-yaku named Kamiyama, facing the end of his career as the title Uzumasa Studio in Kyoto — a real production studio that has been making period dramas for decades — abandons its declining signature genre. A ray of hope appears in the form of Satsuki (real-life martial arts champion Chihiro Yamamoto), a young actress who is handy with a sword. She becomes Kamiyama’s apprentice, seeking to polish her technique but not knowing if she will ever use it again on the screen.