Cost of Tokyo Olympics delay may reach US$2.8 billion as Covid-19 measures hit organisers hard
- Before its postponement Japan said the Olympics would cost US$12.6 billion, though an audit estimated the cost as twice the amount
- Organisers say 18 per cent of tickets sold would be refunded with more than 3.6 million seats still reserved domestically
The cost of the postponement for the Tokyo Olympics could reach about US$2.8 billion, according to figures released on Friday by the Tokyo organising committee, the Tokyo city government and Japan’s national government.
The numbers are in line with estimates that have been made in Japan since the Olympics were postponed eight months ago. They are now set to open on July 23, 2021.
About two-thirds of the added costs are being picked up by the two government entities, with the other one-third going to the privately funded organising committee.
The operational cost for the delay is listed at 171 billion yen, or about US$1.64 billion at the present exchange rate. The organising committee and the Tokyo government share equally in covering the expenses. The national government will pick up a small portion.
The cost for coronavirus countermeasures is 96 billion yen. This is being covered solely by the governments. Tokyo organisers also said they could add 27 billion yen from a contingency fund to help cover added costs.
Tokyo costs are ballooning and could reinforce scepticism about holding the Olympics in the middle of a pandemic. Recent polls show the public is divided on the issue of the Olympics, and allowing fans from abroad to enter. Before the postponement, Japan said the Olympics would cost US$12.6 billion. But a government audit last year said it was likely twice that much. All but US$5.6 billion is public money, before any delay costs.