In March 2020, a number of members of the Tokyo Organizing Committee for the Olympic Games (TOCOG) agreed that the Games would be postponed until 2021. At the start of the Shinkansen outbreak, then-Japanese Prime Minister Shinzo Abe and IOC President Bach agreed, after a phone call, that the 2020 Olympics would be postponed until the summer of 2021. Japan's Tokyo Olympic Games organizers estimate that delaying the Tokyo Games by one year due to the new crown epidemic will require an additional investment of about 200 billion yen.?
I. Sharp increase in epidemic prevention costs
The Tokyo Olympics will spend about 100 billion yen (about $960 million) on initiatives to deal with the new crown outbreak. The Epidemic Prevention Committee, a tripartite group of people from Japan's central government, the Tokyo Metropolitan Government and the Tokyo Organizing Committee for the Olympic Games, will issue a report announcing specific measures to prevent epidemics during the Games. Today's Olympic Games require strict consideration of the impact of epidemics, and with the Olympics encompassing a huge number of delegations from all over the world and a wide geographic area, the pressure to prevent and control epidemics is very heavy. Therefore, the equipment, personnel and medical facilities needed to prevent and control the outbreak of the disease require the full commitment of Tokyo, Japan.
Second, the serious impact on the economy of Tokyo
Tokyo Olympics postponed for a year will make the cost of an increase of about 200 billion yen (about 1.92 billion U.S. dollars), and these increased costs do not include money spent on epidemic prevention. Additional expenses include paying employees' salaries and capital investment in setting up a ticket refund system, among other things. The losses of postponing the Olympics range from $5.4 billion to $6.3 billion, and these are just the losses of the Games themselves and the financial drain caused by postponing them for a year. If the Olympics were canceled, the loss would be $41 billion. As personal consumption slides, the Japanese government has been hoping to boost consumption through the Olympics, and at the same time drive domestic business investment and real estate investment. At the same time, even if the Olympic Games are held as scheduled, because of the impact of the epidemic, the attendance of the competition will not be too good, "Olympic effect" greatly reduced.
Three, the impact on all aspects of Tokyo increased
Postponement of the Olympic Games is a huge project, there will be countless questions submitted to the organizers and host city Tokyo, the most direct loss is a lot of engineering projects in default. The Olympic Village will be converted to condominiums for sale after the Olympics, and the loss of many home buyers is also a big hidden problem when the delivery time is delayed. The Olympic Games are of great significance to the trend of Japan's economic cycle, and the Japanese government hopes to get rid of the economic downturn through the Olympics. Because the Olympics will attract a large number of overseas spectators, which will boost revenues from tourism, catering, transportation and so on. But if the Olympics are canceled, all of these visions will be in vain, and Tokyo and even Japan's economy may enter a full-blown recession. Readers, remember to interact with me.