TOKYO: The organising committee of the Olympic and Paralympic Games (Tokyo 2020) Friday announced updated budgets for both events alongside the Tokyo metropolitan government and the government of Japan. The total amounts to $12.6 billion (JPY 1.35 trillion).
Firstly, it comprises of the “OCOG” budget which is the responsibility of Tokyo 2020. It remains balanced and fully privately financed by the International Olympic Committee (IOC) and local sponsors, licensing and ticket revenues at USD 5.6 billion (JPY 600 billion) with no burden to taxpayers. This includes the costs of the Paralympic Games. On the back of sustained marketing efforts, domestic sponsor revenues for Tokyo 2020 have increased by $100 million (JPY 10 billion) to $3 billion (JPY 320 billion) compared to the previous budget, with another $100 million of revenue expected.
Secondly, the ‘Other Entities’ public budget, for which the government and other local authorities are accountable, includes long term investments for the city and country that will serve future generations for decades after these Games. It remains at $7 billion (JPY 750 billion). Out of this amount, $3.2 billion (JPY 345 billion) is being invested in the nine new permanent venues, including the Olympic Stadium, which the central government will manage, as well as eight other venues which the Tokyo government will manage, including the Tokyo Aquatics Centre.
“As a major investor in the local economy, the Olympic Games Tokyo 2020 is already acting as a catalyst for companies and workers to benefit from the investments made in the Games. The IOC is pleased that the Games will continue to generate a substantial positive economic impact,” IOC Coordination Commission chairperson John Coates said.
“There will be no cost to the public purse for the Organising Committee’s operation of the Games. This will be covered entirely from the revenue generated by the Games themselves.”
Tokyo 2020 CEO Toshiro Muto added: “With less than 600 days to go until the Games, we are finally entering a fully-fledged implementation phase. As many aspects of the Games have become more detailed, Tokyo 2020 has seen increases in some new areas but has successfully reduced expenditures in other areas, resulting in the updated budget remaining the same as the previous version. There is still a lot of work to be done to control expenditures , but with the cooperation of the IOC, Tokyo 2020 will continue to make best efforts to maximize revenues, contain costs and keep its budget within $540 million (600 billion yen).”
The IOC’s Olympic Agenda 2020 and its New Norm recommendations have seen organizers limit the damage caused by unforeseen demands such as increasing costs for transportation which stands at $300 million (JPY 35 billion) and operations which is at $1 billion (JPY 105 billion). A contingency fund worth $1 billion has also been created.
These numbers match the organizing committee’s estimation in December 2017 which was set at JPY 1.35 trillion itself.
