lthough the cancellation scenario is looking less likely by the day, global insurers would face a hefty bill should that happen, with estimates running to a loss of $2-3 billion
Despite growing local opposition amid the coronavirus pandemic, the Tokyo Olympic Games that were postponed last year will get under way in less than two months – barring “Armageddon”, as one International Olympic Committee member said.
Here are some areas where costs have grown, and where income that had been expected will not materialise.
The costs: Organisers said last December that the entire cost of holding the Games would come to about $15.4 billion, including $2.8 billion in costs for the unprecedented postponement from 2020. Since then, the projected bill for postponement has risen to $3 billion.
Sponsors: More than 60 Japanese companies together paid a record of more than $3 billion to sponsor the Games. Sponsors paid another $200 million to extend contracts after the Olympics were postponed.
Insurance: Although the cancellation scenario is looking less likely by the day, global insurers would face a hefty bill should that happen, with estimates running to a loss of $2-3 billion.
Economy hit: The Olympics were originally expected to be a huge tourist draw, but banning foreign spectators put paid to hopes of an early recovery in inbound tourism, frozen since last year.
In 2019, Japan hosted 31.9 million foreign visitors, who spent nearly 4.81 trillion yen ($44 bln). Numbers plunged 87% in 2020.