TOKYO – The organizers of the pending Tokyo Olympics have refused to confirm widely circulating reports in Japan that the one-year delay costs will be around $ 3 billion.
The estimates have been published in recent days by some of Japan’s top-circulating newspapers, national broadcaster NHK, and the Japanese news agency Kyodo. All cited similar figures and unknown sources close to the match.
“We are in the process of assessing the additional costs associated with postponement of matches due to COVID-19 and therefore cannot comment on any details at this time,” Tokyo organizers said Monday in a statement.
The statement does not refute any reports.
The Tokyo Olympics are becoming very expensive.
The official cost of hosting the Tokyo Olympics is $ 12.6 billion. However, last year’s government audit said maybe twice a lot. All but $ 5.6 billion is public money.
Tokyo said the game would cost $ 7.3 billion when it won its bid in 2013.
$ 3 billion in tardiness only adds to the total. A Oxford University Studies published earlier this year – counting before the postponement – said Tokyo was the most expensive Summer Olympics on record and its meters are still running.
The Yomiuri and Kyodo newspapers on Sunday detailed an additional cost of 200 billion yen, about $ 2 billion, to renegotiate leases, pay staff salaries and cover other operating expenses.
NHK and the Asahi newspaper on Monday said another 100 billion yen, around $ 1 billion, was needed for the response to COVID-19. This could include the cost of vaccines, rapid testing, and countless precautions to guard against the coronavirus.
The reported delay costs due to the pandemic are in line with repeated estimates of between $ 2 billion and $ 3 billion in Japan over the past several months.
The organizers, the Tokyo metro government, and the Japanese national government are expected to explain the surcharges in December and detail how they will be shared.
Organizers in October said they had found an estimated $ 280 million in cost savings by simplifying and cutting some frills from next year’s postponed games. This is about 2% of the official fee.
The International Olympic Committee said it would contribute about $ 650 million to partially cover the costs of the postponement, but provided few public details.
The Switzerland-based IOC is heavily reliant on revenue from the sale of broadcast rights, which accounts for nearly three-quarters of its revenue.
The unprecedented delays have put financial pressure on the IOC, the national Olympic committees and international sports federations that rely heavily on the IOC for sustenance.
The IOC and organizers have been campaigning over the past few months to convince Japanese sponsors and a skeptical public that the Olympics can be held safely amid the pandemic.
Domestic sponsors in Japan have paid a record $ 3.3 billion to organizers, but there have been reports of some rejecting further payments during the economic downturn caused by the pandemic.
The Olympics will open on July 23, 2021, followed by the Paralympics on August 24. They involve 15,400 athletes and ten thousand officials, judges, staff, VIPs, sponsors as well as media and broadcasters.
Kyodo reported last week that the Japanese government may require overseas visitors to have private health insurance to cover the costs of any complications of COVID-19.
IOC president Thomas Bach, who was in Tokyo a few weeks ago, said an improved vaccine and rapid testing would help organize the Olympics. But he warned it was not a “silver bullet”.
Athletes are expected to be closely monitored, held in conditions such as quarantine, discouraged from traveling and encouraged to leave as soon as they have finished competing.
Several fans are expected to attend the event, but it is unclear whether many fans from abroad will be allowed to attend.
Japan has controlled COVID-19 relatively well, but has seen a spike over the past few weeks in Tokyo and elsewhere. Tokyo set a one-day record for new infections on Friday with 570.About 2,000 deaths in Japan have been linked to COVID-19.
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