TOKYO: The Tokyo Organising Committee of the Olympic and Paralympic Games (Tokyo 2020) Tuesday unveiled the version five budget for the Olympic and Paralympic Games Tokyo 2020, in conjunction with the Tokyo Metropolitan Government and the Government of Japan.
This comprises the “OCOG” budget, which is the responsibility of Tokyo 2020, and the “Other Entities” budget of the Tokyo Metropolitan Government and the Government of Japan, which includes long term investments for the city and country that will benefit future generations by helping to create a more inclusive society – a key legacy of these Games.
Ever since the historic decision of the postponement of the Games due to the COVID-19 pandemic, all possible optimisation and streamlining measures aimed at simplifying the operation of the Games have been discussed and progressed in cooperation with the IOC and IPC. The version five budget reflects the reduction of expenses arising from these simplification measures. This version constitutes an update of the OCOG budget version four announced in December 2019, based on the agreed allocation of additional costs due to the COVID-19 pandemic for the Games between Tokyo 2020, the Tokyo Metropolitan Government and the Government of Japan that was announced on 4 December.
Compared with the version four OCOG budget, total expenses have increased by $900 million ― including $300 million for Paralympic expenses – to a total of $6.7 billion.
The OCOG budget, which already includes a significant contribution from the IOC, foresees revenues increasing by $700 million, which will help cover the additional expenditures arising from the postponement of the Games. A further $100 million of additional expenditures, if they cannot be covered by Tokyo 2020, will be met by the Tokyo Metropolitan Government.
The OCOG budget includes $1.2 billion of temporary and overlay facility expenditures, an increase of $300 million over the version four budget, operational expenditures of $1.6 billion, an increase of $400 million, and general affairs and communication expenditures of $800 million, an increase of $200 million.
The Games organisers further declared they would continue to work closely with the IOC, IPC, the Tokyo Metropolitan Government, the Government of Japan and all other relevant organisations to prepare for a safe and secure Games, allowing the city of Tokyo and all of Japan "to benefit from hosting the Olympic and Paralympic Games. We aim to continue seeking further efficiencies and expenditure reductions, on top of the $280 million announced in October".
Other Entities Budget
The total expenditures that will be borne by the Tokyo Metropolitan Government will be $6.6 billion, an increase of $1 billion from the version four budget; this includes an increase of $100 million for the Paralympic Games and $400 million to cover the cost of COVID-19 countermeasures. In addition, the Tokyo Metropolitan Government will cover the balance of $100 million of costs that cannot be covered by the Organising Committee's efforts to reduce expenditures and increase revenues.
The total amount of expenditures that will be borne by the Government of Japan is $2.1 billion, an increase of $700 million over the version four budget; this includes the increase of $100 million in the Paralympic Games budget and $500 million to cover the cost of COVID-19 countermeasures.
Including the OCOG budget of $6.7 billion, updated overall Games expenditure will now total $15.4 billion. This comprises the $12.6 billion forecasted in the version four budget, plus the OCOG’s contingency fund of $300 million and the additional costs due to the COVID-19 pandemic of $2.5 billion, including $600 million of additional Paralympic Games costs.
Economic Effects of Tokyo 2020 Games
In 2017 the Tokyo Metropolitan Government announced that the economic benefits brought about by the Tokyo 2020 Games over 18 years from the bid decision in 2013 reached JPY 32.3 trillion. A 2015 report prepared by Bank of Japan staff estimated a boost to GDP growth rate of 0.2~0.3% annually over the period between 2015 and 2018. Furthermore, hosting the Games will inspire the next generation and make major contributions to social change, including the realization of a diverse society, increased awareness of sustainability, and furthering of SDGs.