Tokyo Olympics Rescheduled For July 2021, Economic Stress Deepens For Japan

01-Apr-2020 Intellasia | Forbes | 6:02 AM Print This Post

Topline: Today the International Olympic Committee announced new dates for the Tokyo Summer Olympics: July 23 to August 8, 2021, entrenching Japan’s economic devastation and creating problems for international sponsors.

* Officials expected the Olympics to boost Japan’s recovery with massive tourism, as the country struggled economically pre-coronavirus and had been devastated by COVID-19, reports The New York Times.

* Though Japan has had relatively low coronavirus virus cases, the global spread of the virus has had crippling economic effectscrushing tourism and exports.

Without the Olympics, prime minister Shinzo Abe authorised a $530 billion relief package, the largest in the Country’s history.

* Japan has spent an estimated $9 to $25 billion to ready its capital for the Olympics, infrastructure they will need to pay to maintain or take down and reinstall next summer.

* Local and international corporations have already dropped massive amounts of money for the games: with Japanese companies paying an estimated $3 billion on sponsorships limited in timespan, hotels undergoing billion-dollar restorations and NBCUniversal spending $1.4 billion for broadcast rights, according to The Diplomat.

* With 1,866 cases of COVID-19 in Japan with 54 deaths and 424 recoveries Japan has been relatively unaffected by the virus, allowing the country to avoid shutdowns that have paralysed nations like the US, Italy and China.

Key Background: The original Tokyo Olympics were to take place from July 24 to August 8 of this year. The Olympic Games were postponed last week with the world under social distancing restrictions and self-isolation to prevent the spread of COVID-19.The only other times in history the Olympics have been moved were in 1916, 1940 and 1944: all cancelled due to World War I and II.

Quote: “Under the current situation, we are just barely holding up,” said prime minister Shinzo on Saturday due to the onslaught of COVID-19 and the tanking economy.


Category: Japan

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