Will the 2020 Olympic Games be held? If the games are canceled, Japan will lose billions of dollars.
Should the Olympic Games be canceled again, the International Olympic Committee (IOC) and Tokyo 2020 organizers face a loss of more than $15 billion, as corporate sponsors lose interest in being affiliated with the event.
Because of the COVID outbreak, the IOC and Tokyo 2020 organizers postponed the Games by a year in March 2020.
The Olympics have never been canceled since their modern incarnation in 1896, with the exception of two world wars, and the IOC is sure that the Games will take place this summer.
However, public opposition in Japan has solidified in the last year. According to a recent Nikkei poll, as many as 62 percent of Japanese respondents oppose the concept of staging the Games this summer.
The percentage has dropped from 83 percent a month ago, but it is still significant.
The public backlash the IOC would face if it goes forward with the games could be insignificant in comparison to the financial cost of canceling them.
According to official data, Japan has spent $15.4 billion on the Olympics, with $8.6 billion coming from Japanese taxpayers.
The budget was originally set at $13.4 billion, but the total cost has now surpassed that figure.
Economists believe that if the Games are canceled, Japan will lose $16 billion.
Takahide Kiuchi, a former Bank of Japan board member and current executive economist at the Nomura Research Institute, cautioned in May that if the Games go ahead, the financial damage might be substantially greater.
According to Reuters, he stated in a study that “if the [Olympics] trigger the spread of illnesses and need another emergency declaration, then the economic loss would be far bigger than cancellation.”
According to Nomura, Japan’s first statewide state of emergency cost the country’s economy 6.4 trillion yen ($58.4 billion) last year. The financial impact was only worsened by the subsequent states of emergency Japan has imposed.
“These calculations suggest that the decision of whether to hold or cancel the Games should be made from the perspective of infection risk rather than economic loss,” Kiuchi added.
The decision to ban foreign spectators from attending has already cost organizers approximately $800 million in forfeited ticket sales. Should the Games be canceled, organizers would have to. This is a brief summary.