Coronavirus: Tokyo Olympic Games delay a blow to Japan’s economy but secondary to Covid-19 fallout
- Estimates of damage from the postponement of this year’s event in Tokyo by one year range from 600 billion yen (US$5.4 billion) to 2 trillion yen (US$18 billion)
- But the delay is overshadowed by the coronavirus outbreak which has deepened Japan’s recession fears having already caused tourism to grind to a halt
From tour operators and event sponsors, to merchandise hawkers and film studios, the postponement of the 2020 Olympic Games in Tokyo has added another wrinkle of anxiety to growing concerns about the outlook for the Japanese and world economies.
Nonetheless, while much of the economic benefit from the investment in infrastructure for the Olympics has already been banked, a cascading effect from the one-year postponement, which was announced on Tuesday, is certain to ripple through consumption and business confidence.
Companies around the world expecting a bumper payday off the back of the event are hoping their goods can keep and that orders will return when the Olympics eventually take place in 2021.
The postponement is clearly better than a cancellation, and [in that regard] it is a lifesaver for Japan
“The impact of this epidemic on tourism is extremely significant. The delay of the Olympic Games is even worse,” said Eiha Jo, founder of Tokyo-based tour company, China Enterprise. “My company served over 600 high-end Chinese tourists last year. They went to Japan to play golf, access health care services and look for properties to invest in. But I’m afraid I will see a big drop in business, compared to last year.”