Cost of Tokyo's pandemic-delayed Games
June 23, 2021 - Tokyo’s postponed Olympics budget has more than doubled from the $7.3 billion Japan initially earmarked when the International Olympic Committee awarded the games in 2013.
Japanese taxpayers learned last December that the entire cost of holding the Games would come to about $15.4 billion. The price tag includes $2.8 billion for postponement due to the pandemic. Taxpayers will be responsible for two-thirds of this bill.
Organisers initially sold some 4.48 million tickets worth some 90 billion yen ($815 million). On June 21, Tokyo 2020 CEO Toshiro Muto announced a cap on spectators at half venue capacity, with an upper limit of 10,000 -- and a ban on overseas spectators. This cap will result in lost ticket revenue of $335 million.
When the IOC awarded the Games to Japan, Tokyo expected spectators to spend some $2 billion on tickets, hotels, sushi meals, merchandise and travel around the country. Most revenue would have come from overseas spectators.
In 2019, Japan hosted 31.9 million foreign visitors, who spent nearly 4.81 trillion yen ($44 billion). Numbers plunged 87% in 2020 to just 4.1 million, a 22-year low -- equivalent to a plunge of $38.4 billion in tourism revenue.