The Tokyo Olympics are gone, and huge deficits are coming…
China News Service, August 10th. On August 8, the Tokyo Olympics officially came to an end. The wonderful performances of the athletes on the field and the feats of repeatedly breaking the world record have become the precious wealth of this Olympic Games. However, after the Olympics ended, the host Japan had to face the huge deficit caused by the Olympics.
On August 8, the closing ceremony of the 32nd Summer Olympic Games was held in Tokyo, Japan. The picture shows Seiko Hashimoto, chairman of the Tokyo Olympic Organizing Committee, giving a speech at the closing ceremony. Photo by China News Agency reporter Han Haidan
The chief economist of Japan’s Daiichi Institute of Economics Hideo Kumano wrote in Japan’s “Mainichi Shimbun” that in addition to the construction cost of the venue, the additional cost caused by the one-year postponement The increase in public expenditures such as the cost of responding to the new crown pneumonia epidemic has brought huge deficits to the Tokyo Olympics.
The article pointed out that the Tokyo Metropolitan Government originally planned to create 2.26 trillion yen (approximately RMB 135.6 billion) through measures such as the use of the Olympic Village again, and 91,700 yuan through tourism and the application of advanced technology. Billion yen (approximately 550.2 billion yuan) in income. However, it now appears that none of these can be achieved.
Japan’s “Mainichi Shimbun” quoted the chief researcher of Mitsubishi UFJ Research and Consulting Company Shinichiro Kobayashi as saying that because the Tokyo Olympics are in principle empty games, the economic effect during this period is “almost zero.” Many sponsors have also reduced their advertising activities.
“The New York Post” previously stated that a study by Oxford University showed that since 1960, the average cost of each Olympic Games has exceeded 172%. However, the cost of the Tokyo Olympics may be about 400% higher than the initial budget. Most of them will not be recovered.
p >On August 8, the closing ceremony of the 32nd Summer Olympic Games was held in Tokyo, Japan. The picture shows IOC President Bach (left) handing over the Olympic flag to the Mayor of Paris at the closing ceremony of the flag handover ceremony. Photo by China News Service reporter Du Yang
Zimbalist, an economist at Smith College in the United States, predicted that the Olympics will cost Japan at least US$30 billion (approximately RMB 195 billion). The Tokyo Olympic Organizing Committee spent 35 billion U.S. dollars (approximately RMB 227.5 billion) on the Tokyo Olympics, which is a far cry from the original budget of 7.3 billion U.S. dollars (approximately RMB 47.5 billion).
And Japan’s “Yomiuri Shimbun” reported that according to Nomura Research Institute economist Tohide Kiuchi, due to the impact of empty venues in most of the stadiums, the ticket revenue and the accommodation fees for spectators dropped sharply, resulting in 133.7 billion yen (approximately RMB 8 billion) in revenue has evaporated.
At the same time, Kiuchi Tohide pointed out that since the fourth Tokyo Metropolitan Emergency Declaration was issued on July 12, the economic loss caused by a series of emergency declarations will reach 21,900 due to the reduction of dining and accommodation opportunities. Billion yen (about 131.4 billion yuan).