Even with the ever-increasing price tag of the Tokyo 2020 Olympic Games, experts estimate that hosting the Games will boost the Japanese economy by as much as 30 trillion yen ($350 billion) by 2020. (The Straits Times)
The news comes despite the fact that reports earlier this month project that the high costs of security and anti-terrorism measures mandated by Japanese authorities are contributing to a new 2020 Games projection of around $15 billion, well ahead of both the London and Rio Olympics’ operating budgets.
But, the Bank of Japan released a report earlier this week that increasing number of foreign tourists, as well as Olympics-related construction investments are helping to ‘expand Japan’s gross domestic product (GDP) by .02-.3 percentage points’ on an annual average basis from 2014 to 2020.
An economist at SMBC Nikko Securities, Inc says, “This is a reasonable estimate. There is no doubt the Olympic Games is good news.” Additionally, Japan’s economy is expected to expand by as much as .6% between 2017 and 2018 from 2014 levels due to the Olympic preparations.
Interestingly, in a study conducted by Mizuho Research Institution in an October 2014 report, of all the host cities since the inception of the modern Olympics, the Games in Beijing, Seoul and Montreal showed the biggest economic benefit of hosting the world’s biggest competitive events.