The Strategist

Japan to lose nearly $1.37B due to non-admission of guests to the Olympics


03/22/2021 - 05:42



Japan's economy will lose 150 billion yen (about $1.37 billion) because of the decision to hold the Olympics this summer without foreign fans, local media reported citing experts from Japanese think tanks.



pixabay
pixabay
Economists with the Dai-ichi Life Research Institute cited by the Nikkei business daily believe that the economic effect expected by Tokyo from holding the Olympics will be reduced by 150 billion yen (about $1.37 billion). The same figure was cited by Takahide Kiuchi of the Nomura Research Institute in an interview with NHK.

Japan was hoping that hosting the Olympic and Paralympic Games would attract many foreign tourists, who were to be shown not only the capital, but also the regions. Among the long-term effects was to showcase the reconstruction picture in northeastern Japan, which was hit by a devastating earthquake and tsunami in 2011.

On Saturday, it was decided to hold the Olympics without foreign spectators and 630,000 tickets will be returned to them. The International Olympic Committee (IOC) has agreed to hold the games without foreign spectators quite easily, the Nikkei newspaper found, as about 70% of its income depends on the sale of TV rights and 20% on sponsorship funds.

The US company NBCUniversal bought the rights to broadcast the Summer and Winter Olympics in the USA until 2032 for a total of 1 trillion yen (about 9 billion dollars). Thus, it is important for the IOC that the Olympics take place. It supported Tokyo's decision to hold the games without foreign fans, as, firstly, in this format they would be safer from an epidemiological point of view, and secondly, the IOC "would not receive a tangible blow in terms of revenues".

source: asia.nikkei.com