Japan is in a dilemma. The question is worth $17 billion. The people do not want it to happen. At least a majority of them are against it. The State is not in a position to let it go. You got it right. It is Tokyo 2020 Olympics.
The Games have been postponed once from its original 2020 dates. Due to Covid-19 outbreak. If the pandemic prevails yet again over the determination to stage the Games, the 32nd Olympiad will go down in the history as only Olympics called off during peace time.
The other times when the Games failed to take place were 1916 (World War I). Then in the 1940 and 1944 due to the World War II. Incidentally, the 1940 Games were also to be hosted by Tokyo, before being provisionally shifted to Helsinki upon outbreak of the War. The 1944 edition was to take place in London. The city then hosted the Games in 1948 as the Olympics resumed after the War.
Back to Tokyo. The pressure is mounting in Japan to cancel or postpone the Games. A section of sponsors, local politicians, activists and a majority of Japanese citizens is against the Games. Fear factor is subsiding the excitement and pride the Games bring to the host nation.
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A $17 BILLION DILEMMA
If staging the Games is being perceived as a big health hazard, cancellation will have no less consequence for the Japanese exchequer. A Tokyo-based research institute has reportedly estimated that Japan will suffer an approximate loss of $17 billion (Yen 1.81 trillion) for failure to stage the Games.
A cancellation might reduce operating costs like hospitality, transport, energy and the rehabilitation of the Olympic Village. But the loss of revenue is much bigger.
The major costs of the cancellation would include an estimated $3.3 billion reimbursement to local sponsors. The Tokyo 2020 Organising Committee will also have to pay back t$1.3 billion the International Olympic Committee has paid to stage the Games. The money off course is already spent on the infrastructure, which remains the property of the host nation.
The IOC also stands to lose the sponsorship and media rights revenues.
PRESSURE TO CALL OFF GAMES
Meanwhile, the pressure to call off the Games has gone viral. Local sponsor Asahi Shimbun, a Japanese news publication, has also asked to cancel the Olympics. The paper in its editorial has urged Prime Minister Yoshihide Suga to “make a calm, objective assessment of the situation and make the decision to cancel the Olympics”.
The paper further states that it “cannot accept the gamble” to stage the Games even after the organisers assurance that these will be safe (from Covid-19 virus). The editorial has also accused the IOC leadership, including vice-president John Coates, of being “self-righteous” and “clearly out of step with the Japanese citizens.
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