This summer’s Tokyo Olympics could result in billions of dollars in losses for Japan as costs continue to rise.
Funding for stadium renovations, athlete accommodation and event marketing has amounted to more than $ 20 billion in estimated costs to host the delayed 2020 Tokyo Olympics, making it one of the Most expensive games in history.
But gold is not needed.
The 2014 Winter Olympics in Sochi were the most expensive, followed by this year’s Tokyo Summer Games, according to a Oxford University newspaper. Of course, the total cost associated with this year’s Games is still an estimate, according to the Wall Street Journal, and a clearer picture of Japan’s spending will be available in the coming weeks once international competition ends.
It’s important to keep in mind that the expenses for the Olympics listed here are “sport-related costs”. These include things like stadium construction, ceremonies, and other operating costs, such as labor and restoration.
The non-sporting activity of the Organizing Committee of the Olympic Games (OCOG) is not included in the official expenditure. These “indirect costs that are not OCOG” include the construction of roads, rails, airport infrastructure, and hotel upgrades, which are also related to the holding of the Games.
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And these costs often decrease the official expenses related to the sport of the Games, but the benefits can be obtained years ago.
For example, the 2008 Beijing Olympics had a sporting cost of $ 6.8 billion, but China’s total expenditure was about $ 42 billion due to external costs. These costs range from a $ 3 billion airport terminal to $ 30 million spent on trees and flowers, according to WSJ.
Host governments will make public that, beyond the lack of revenue from the Games, having the Olympics lifts the economy by creating jobs, boosting tourism and adding much-needed infrastructure. These measures are more difficult to quantify and some studies have found these claims about employment and tourism to be more ambiguous.
In fact, it took Montreal decades to pay for the money to build an Olympic stadium for the 1976 Games, which was eventually renamed Big Owe. And the cost of the 2004 Athens Olympics has been associated with the Greek debt crisis.
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The OCOG has budgeted a projected revenue of $ 6.7 billion for the Tokyo Games, which is well below the estimated costs of $ 20 billion.
The Tokyo Olympics officially begin on Friday, although dozens of COVID-19 cases have infected some athletes and dozens of “game-related personnel.”
But if the Olympics were to be canceled, the International Olympic Committee would have to return about $ 4 billion to its broadcasting partners.