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how-the-tokyo-olympics-became-the-most-expensive-summer-games-ever-wsj

The Tokyo Games are on track to be the most expensive summer Olympics ever, with the pandemic adding to mounting economic losses. WSJ unpacks the financial costs.

The Tokyo Olympics made history even before they began.

They're the first Games to ever be postponed.

They're also on track to be the most expensive Summer Olympics Games ever.

- So when Japan won its bid to host the Olympics in 2013,

it said that it would cost around $7.4 billion

the budget had risen by 70% to $12.6 billion

Later, Japan's Board of Audit said the cost would exceed $20 billion.

That was before pandemic-related costs set in.

- So the biggest costs for the Olympics are the facilities.

as well as several other large facilities,

aquatic center and others that have been built for the Games.

that was spent on renovating other facilities

to bring them up to standard for the Games.

So the whole thing, in terms of venues, was around $7.5 billion.

And the other big cost is the operational budget for the Olympics.

Almost every Olympics ends up going over budget.

- What's different in Tokyo, of course, is that we've had this one-year delay

for venues, for having to keep staff on for an additional period

And the public risk from the pandemic hasn't gone away,

so the Tokyo Olympics are now proceeding with COVID countermeasures

that require new costs, manpower and infrastructure.

Together, the postponement and COVID measures

will add an estimated $2.5 billion to the Games' budget

COVID is also taking away much of Japan's ability to recoup what they've spent.

- Ticket sales would be around $800 million

because there'll be almost no spectators.

And there'll be almost no income from visitors.

Of course, athletes and officials who have come here from overseas

but nothing like the amounts that the organizers were hoping for

from spectators who would fill the stadiums,

buy merchandise, spend money in hotels and restaurants

as much as $2 billion and now that's lost.

Corporate sponsors have contributed around $3 billion to the Games

to help cover the extra costs resulting from the pandemic.

Still, that leaves the bulk of the costs to Japan

with little ability to recoup in the short term.

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How the Tokyo Olympics Became the Most Expensive Summer Games Ever | WSJ

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