Tokyo Olympics to Incur Additional Costs of $2.4 Billion Due to Pandemic
The Tokyo Olympics, postponed several months due to the new coronavirus pandemic and scheduled for July 2021, will incur an additional cost of 267 billion yen ($2.4 billion), organizers said on Friday.
The cost overrun is explained by the expenses generated by the delay of the Olympic event (171 billion yen - $1.6 billion) and the investment needed to ensure all required health measures (96 billion yen - $922 million), according to these sources.
The cost of the Games could still increase, according to the organizers, who are already planning an additional reserve budget of 27 billion yen ($259 million).
This cost overrun could further disappoint the Japanese public opinion, which, according to several polls, is mostly in favor of further postponing the Olympic Games or canceling them altogether.
But the organizers insist that they can be held in 2021 even if the epidemic is not yet under control by then.
This additional cost will be shared between the Japanese government, the Tokyo municipality, and the Japanese organizing committee. (D)