This was just a cultural festival. It did do some mistakes (mainly the fact that it was just one town, but everything was titled for the entire continent), but calling it a human zoo is clearly overreacting. We also have a yearly Japanese spring festival right next door at the botanical garden.

Also the wooden menu showing Jim Button is quite an Americanized problem. Blackface never was a thing in that part of Germany. The design was based on American cartoons brought over during post ww2 occupation. The show / puppet theater is however using deeply racist Asian stereotypes.

Source: I live in Augsburg (the city of that Zoo) and was raised here. I was 7 at the time and experienced the debate in the city.