There is a lot of uncertainty around the Tokyo Olympics while Japan is devastated by the second wave of the pandemic. Should the event not continue, the Japanese government along with all entities associated with the organization of the Tokyo 2020 Summer Olympics are likely to lose a whopping 1.8 trillion yen ($ 16 billion).
The alarming figures came after a study by the Japan-based Nomura Research Institute. They also warned of an even greater financial drain if a new state of emergency is declared to cope with a further surge in coronavirus cases after the Tokyo Olympics and Paralympics are held as scheduled, which will act as a super spreader event.
“If the (Olympics) trigger the spread of infections and require another emergency declaration, then the economic loss would be much greater,” he added. said Takahide Kiuchi, executive economist at the Nomura Research Institute (h / t Reuters). He also mentioned an estimated loss of 6.4 trillion yen during the first nationwide state of emergency last year. He also said that the cancellation will lead to a loss equivalent to a third of nominal GDP in 2020.
According to the institution, if the Tokyo Olympics They are held from the end of July with no viewers, Japan would generate 1.66 billion yen, while the inclusion of domestic viewers would add up to about 146.8 billion yen. Although the organizers make sure to maintain tight security measures, the polls reflect the majority of the Japanese public’s resentment of the plans and want the big event canceled.
Japan has been hit by the second wave of the pandemic, especially in the populated areas of Osaka and Tokyo. Although the inoculation process in the country has been accelerated, it still lags behind advanced countries such as the United States and the United Kingdom.
Speaking of vaccines, the organizers are looking forward to preparations for the games despite the uncertainty that they will take place. The vaccination campaign for the participants, which will start from June 1, will include around 600 athletes and 1000 employees who will be in close contact with them. The International Olympic Association is adamant that the games are scheduled to go ahead.