What Effect Did The Pandemic have On The Tokyo 2020 Games

Over the past few years, host cities have invested various amounts in the games, but more often than not have seen an economic decline post the event.

When Rio won the bid to host the 2016 Summer Games back in 2009, Brazil was in the midst of one of its best economic times in 50 years. Contrast that with today, when Brazil is in its worst recession since the 1930s

And in 2012, London budgeted $5 Billion yet spent $18 Billion, in 2018, Sochi budgeted $10 Billion for the Winter Olympics and went over $51 Billion. Rio de Janerio aimed for $14 Billion and spent $20 Billion.

Due to the fact that this edition of the Olympic games is being played behind closed doors, the Tokyo Olympic committee will not receive the estimated $800 million in ticket sales revenue. Not only will Tokyo miss out on ticket sales but they will not receive the money that foreign fans would have paid to get transported there.

Japan has had to invest into vaccinating 80% of the officials involved in the games. They have also employed 230 doctors per day.

The fact that no foreigners are allowed will mean that the tourist industry, that is, restaurants, hotels, transportation, etc. will incur losses. According to Normura Research Institute, Tokyo is likely to suffer an economic loss of 1.38 billion in this area alone.

In Japan, 16 out of 100 people of the population have been vaccinated, which is far below the levels of other G7 economies.According to Our World in Data Ogures, other G7 economies like USA who have vaccinated 91 per 100 people of their population.

Ahead of the Olympics, 49% of the Japanese population felt that the games should be cancelled altogether, so hosting them with foreign fans would not have gone down well with the citizens.