Tokyo Olympics to cost additional $2.4 bn due to postponement amid COVID-19: Organisers

Tokyo Olympics 2020, which was postponed earlier this year due to COVID-19 concerns, will cost at least an extra $2.4 billion to the organisers, Japanese government, and the Tokyo Metropolitan Government (TMG). The organisers on December 4 attended a meeting with representatives of the TMG and the Government of Japan, where the allocation of the additional costs incurred by the postponement of the Games was agreed between the three parties.

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Postponement of Games

Earlier this year, the Olympic Games were postponed for the first time since World War II due to the COVID-19 pandemic that hit the world in early 2020. It was later decided that the Games will be held in 2021 between July to August. Since then, all possible optimization and streamlining measures aimed at simplifying the operation of the Games and the various measures necessitated by their postponement have been actively discussed and progressed in cooperation with the IOC. 

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"Tokyo 2020, the Tokyo Metropolitan Government and the government of Japan shall fulfill their responsibilities based on their respective roles, and all necessary additional costs shall be allocated in accordance with the following agreement. In the event Tokyo 2020 is not able to cover any of the costs allocated to it by means of revenue growth, the Tokyo Metropolitan Government will bear those costs," Tokyo 2020 said in a statement. 

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After the conclusion of the meeting on December 4, Tokyo 2020 said that an additional $1.5 billion would be required for operational purposes in organising the Games next year, while an extra $900 million would be required for COVID-19 countermeasures, such as conducting regular testing of all athletes and people involved in the Games. 

Tokyo 2020 and TMG will provide $700 million each for covering operational costs, while the Japanese government will contribute $100 for the same. For COVID-19 countermeasures, the TMG will give $400 million, while the Japanese government will have to empty $500 from its treasury. All figures are in US dollars and at the present exchange rate of USD 1 = JPY 107. 

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(Image Credit: AP)