The organizing committee of the Tokyo Olympics on Friday revealed that the postponement of the mega-quadrennial event to 2021 is going to cost a whopping amount of around $2.8 billion.
The International Olympic Committee (IOC) and the Japanese government had decided in March to postpone the Tokyo Olympics to 2021 due to the novel coronavirus pandemic, which put a break on almost every sporting event this year.
It was the first time in its 124-year history that the Olympics had got postponed. The delay has not only affected the athletes and personnel involved, but also brought economic implications for the Japanese government.
Determined to host Tokyo Olympics as it will prove humanity's win over the pandemic: Japan PM Yoshihide Suga
In a video speech at the United Nations General Assembly, Japanese Prime Minister Yoshihide Suga expressed his determination in hosting the Games safely to show the world that humanity has defeated the COVID-19 pandemic.
"I expressed my strong determination to host the Tokyo Olympic and Paralympic Games in the summer of next year as proof that humanity has defeated the pandemic," said Yoshihide Suga.
Earlier, the IOC had announced that it would contribute $650 million to cover the postponement, which is separate from the cost revealed by the organizing committee on Friday.
Organizers have announced that the Tokyo metropolitan government is expected to pay 120 billion yen, the organizing committee 103 billion yen, and the Japanese government 71 billion yen.
Tokyo 2020's CEO Toshiro Muto said that the additional revenue received will be invested in sponsorship and insurance.
"Tokyo’s costs are Tokyo’s costs. Tokyo 2020’s (allocation) is revenue that we can secure. Within this revenue we have additional sponsorship that we have requested from partners and we also have insurance,” said Muto.
With the cost of the postponed-Tokyo Games ballooning, the organizers revealed that they could add an extra 27 billion yen ($260 million approx.) from the contingency fund to cover up the additional expenses.
Before the postponement, the Japanese government had said that the Tokyo Olympics would cost $12.6 billion in December 2019.
Toshiro Muto also expressed how IOC President Thomas Bach was determined to ensure that the Tokyo Olympics took place successfully next year.
“President Bach expressed his strong determination that the IOC and us should work as one team and cooperate to ensure the success of the Games.” he concluded.