Tokyo Olympics / Para postponed Economic impact on March 25 5:57

The Tokyo Olympics and Paralympics have been postponed for about one year. A summary of possible economic consequences.

Impact on the Japanese economy

Regarding the impact on the Japanese economy, private economists predict that the holding of the Games will boost the GDP = Gross Domestic Product by about 2 trillion yen, and the effect will disappear.

Among them, Toshihiro Nagahama, chief economist at the Dai-ichi Life Economic Research Institute, estimates that the economic effects of the Tokyo Olympics and Paralympics will increase Japan's GDP by about 1.7 trillion yen, based on the growth rate of host countries so far. Was there.

If the event is postponed for about a year, the effect of boosting the GDP of the future will be lost, and this effect will be postponed next year.

On the other hand, if the event is postponed for one year, the cost of maintaining and repairing stadiums and other facilities and the cost of the competition group preparing for the event one year ahead will be incurred if the event is postponed for one year. , Japan's economic loss is estimated to be over 640 billion yen.

Accommodation

Let's look at an example of the economic impact of the postponement.
First of all, accommodation.

According to the “candidate file” at the time of the invitation for the Games, during the period, the demand for accommodations of the Games officials, sponsors, media, etc. is expected to be up to about 46,000 rooms per day, and the Organizing Committee will secure the accommodations I have advanced.

Due to the postponement, there may be a large amount of future cancellations at the property, including audience demand.

The challenge is how to mitigate this effect.

Watching tour

This also affects companies that have organized official tours of the tournament.

JTB, a major travel agency, KNT-CT Holdings, which has affiliated companies such as Kinki Nippon Tourist, and Tobu Top Tours, were selling watching tours.

Of these, JTB stated in the tour guide information that "if the game time is changed because the company is not involved, you will not be able to refund or exchange watching tickets."

However, we have not anticipated that the tournament itself will be postponed, and will consider ways to deal with it in the future.

Security company

Next is security for the tournament.

The required size of private security guards at and around the competition venue is expected to be around 14,000.

Hundreds of companies, including major security companies, planned to undertake security related to the tournament, but the delay is expected to have a significant impact on this plan.

Former use of the athlete village

The use of the former site of the Olympic Village may be affected.

The Tokyo Olympic and Paralympic Olympic Village, which is being constructed in the Harumi district of Tokyo's Chuo Ward, will have 23 condominiums built using buildings and surrounding land after the Games, with a total of 5,600 units for sale and lease. The remainder will be supplied.

Some of the properties have been on sale since July of last year, and occupancy is expected to start three years later, in late March 2023. However, there may be a delay in occupancy due to the postponement of the tournament.