Billion-dollar budget cut for Tokyo 2020 Olympics as city clamps down on spiralling costs
Organisers to continue cutting cost of Summer Games as they seek extra funding to balance the books
Tokyo 2020 organisers on Friday unveiled a “significant” cut in their budget for hosting the games, as the city comes under pressure to keep a lid on spiralling costs.
The overall games budget now stands at a total of 1.35 trillion yen (US$12.6 billion), organisers said in a statement.
This represented a cut of US$1.4 billion compared to the previous version of the budget unveiled last December and US$0.3 billion compared to an interim figure agreed in May.
“Going forward, Tokyo 2020 will continue to seek further cost reductions, particularly in the areas of event operations, transport, accommodation and security,” organisers said in a statement.
They hailed a “significant reduction in costs” resulting from “sustained efforts … to avoid recourse to public funds”.
The Tokyo 2020 organising committee will cover US$5.6 billion of the costs, with the Tokyo city authorities and the Japanese government stumping up US$7.0 billion between them.
The US$5.6 billion organising committee budget is covered by ticket sales, licensing and sponsorship and the statement hailed an increase of US$0.9 billion in sponsorship revenue.
However, Tokyo 2020 admitted it still needed to find US$0.2 billion in “expected additional revenue” to balance the books and vowed it would “continue to look at ways” to secure the extra funding.
Tokyo organisers are under pressure to keep costs down, with the International Olympic Committee worried ballooning price tags for hosting the games will deter cities from bidding for the showcase event.
The roll-out of the centrepiece Olympic Stadium turned into a fiasco when prime minister Shinzo Abe tore up the blueprints amid public anger over its price tag.