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Summary
- The delay of the Tokyo Olympics, which was due to restrictions from the Covid-19 pandemic, has cost Japan an estimated hike of 22% over last year.
- Although the Olympic Committee can still technically call of the event if there is a sudden steep spike in Covid cases, such a move seems unlikely.
- Despite health precautions taken by Olympic organisers, several athletes still tested positive for the Covid-19 virus, adding to over 6,000 daily cases in Tokyo, currently in a state of emergency.
Source: © Esperanta17 | Megapixl.com
Preparing to host just one Olympics costs an enormous amount of money. However, when that Olympics is cancelled and the host city must prepare another one the following year, the costs are exorbitant.
Such is the challenge faced by Tokyo right now as it prepares to host its first Olympic Games since 1964.
Cost of Delay
The delay of the Tokyo Olympics, which was due to restrictions from the Covid-19 pandemic has cost Japan an estimated increase in cost by 22%.
Furthermore, the chief of the Tokyo Olympics organising committee, Toshiro Muto, has not ruled out cancelling The Games again if there happens to be another spike in Covid cases.
Even though the possibility of cancellation looms in the air in Tokyo, Olympic organisers say they’re still committed to delivering a successful Games campaign.
Although Japan has lost a lot of money so far, cancelling the games altogether would have cost a devastating US$56 billion.
The Games, which are set to begin tomorrow, is the fifth version of the Olympic budget designed by the Tokyo Organising Committee in December 2020, which said it would estimate expenditure at approximately US$150 billion.
During the pandemic, the International Olympic Committee (IOC) allocated an emergency aid fund, including US$110 million for athletes who have encountered a great deal of stress arriving to this point.
Moreover, the IOC has allocated US$800 million for national Olympic committees around the world, including Japan, for which it has given US$650 million to cover the costs of postponement.
The total cost of the Tokyo Games will exceed US$20 billion with new construction costs and other logistical costs as per the Australian.
Source: © Imaraccoon | Megapixl.com
Cancellation Possible but Unlikely
Although the Olympic Committee can still technically call off the event if there is a sudden steep spike in Covid cases, such a move seems unlikely.
Toshiro Moto told a press conference that a five-party meeting would take place if such a spike occurs.
Preventive Precautions
Tokyo organisers are doing everything they can to prevent the spread Covid-19 virus, with the games taking place inside a Covid bubble to restrict the athlete’s interaction with the general public.
Moreover, the Tokyo Olympics will take place without a live audience. Therefore, the decision to have athletes compete in empty venues reduces the risk of the Covid spread.
Japanese Prime Minister, Yoshihide Suga, said that the absence of live spectators would be replaced by a global television audience of five billion people.
Despite these precautions, several athletes still tested positive for the Covid-19 virus, adding to the 6,000 daily cases in Tokyo, currently in a state of emergency.
International Olympic Committee president, Thomas Bach, made a startling admission saying he had underestimated the difficulty of staging the Olympic Games after a 12-month postponement.
Speaking at the opening of the 138th IOC session, Mr. Bach said that the IOC still had to instil confidence and give hope despite doubts.
Source: © Xzotica | Megapixl.com
Stocks to Watch During the Tokyo Games
Panasonic Corp. (TYO:6752) has been a hot stock during Olympic Games for a very long time. Panasonic has provided an array of electronic equipment to Games broadcasters over the years, including cameras and audio equipment. In fact, Panasonic is an official worldwide partner for the 2021 Tokyo Olympic Games.
Its website says “Panasonic’s aim is to support the Olympic and Paralympic Movement with its cutting-edge technology and carry it over into the future”.
Another partner of the Olympic Games and another stock to watch during The Games is the security service, Secom Co Ltd (TYO:9735). Secom provides security to businesses worldwide and partnered with The Olympics in 2015.
Dentsu Group Inc. (TYO:4324) is the largest PR firm in Japan so it was no surprise when they were chosen to be the official marketing agency of the Tokyo Games.
Dentsu received criticism when it was discovered in 2020 that it had donated millions of dollars toward Tokyo’s Olympic bid, which critics argued created a massive conflict of interest.
