Tokyo 2020 Olympics were the most expensive in history

Tokyo 2020 Olympics were the most expensive in history

The official price of the summer fair was 15,400 million dollars, although government audits assure that it is higher

The official price for organizing the Olympic Games of Tokyo 2020 it was of 15,400 millions of dollars, which according to a study by the University of Oxford would be the most expensive in history.

What else could you buy with that amount?

The estimated cost of building a 300-bed hospital in Japan is 55 million. So almost 300 of them could have been built.

The average price of a primary school in Japan is about 13 million. For that price, you would have 1,200 schools.

A quick search turns up that a Boeing 747 is valued at around 400 million. So you would have 38 jumbo jets for the cost of about Olympic Games.

The point is that Olympic Games they are expensive and could overshadow other priorities. In fact, several government audits ensure that the real price of the Tokyo Olympics it is even higher than the official figure, even double. With the exception of 6,700 millions of dollars, the rest comes from public funds from Japanese taxpayers. According to the most recent budget, the IOC contribution is 1.3 billion. It also brought in an additional several hundred million after the pandemic.

Olympic costs were analyzed by an Oxford University study, which found that all jousts since 1960 have exceeded their budget by an average of 172 percent. Excess of Tokyo it is 111 percent or 244 percent, depending on which figure is chosen.

“Neither the IOC nor the host cities are interested in tracking costs, because that tends to reveal budget overruns, which have more often become an embarrassment to the IOC and host cities,” said study author Bent Flyvberg. in an email. Flyvberg stressed that costs would be reduced if the IOC contributed a larger amount rather than dedicating itself to opening the organizers’ wallets.

Keeping track of costs is a tedious exercise, packed with arguments of what does and does not constitute an Olympic expense. Flyvberg explained that the figures for the different Games may not be comparable and require further analysis.

“The problem is to separate what is an Olympic expense from a general infrastructure expense that would have been carried out in the same way, but was sped up to carry out the fair,” Victor Matheson, who studies sports economics at the Holy Cross University.

For example: Olympic games Tokyo 1964, he says, “were one of the cheapest or one of the most expensive depending on how much of the preparation fits within the definition of Olympic spending.”

Beijing 2008, often listed as costing over 40,000 millions of dollars and the 2014 Sochi Winter Games – priced at $ 51 billion – are often incorrectly highlighted as the most expensive.

“The figures for Beijing and Sochi include higher infrastructure spending: roads, trains, airports and so on. Our figures do not,” Flyvberg said in an email.

The ambiguity around costs – and who pays for them – allows the IOC to host the Games as a global party promoting peace and unity across the globe. Everyone seems to benefit and the economic interests of the IOC are hidden behind national flags, parades, ceremonies and success stories of athletes winning medals and defeating a pandemic.

In the case of Tokyoexpenses, of course, skyrocketed with the postponement. Authorities say the postponement added 2,800 millions of dollars to the final total. The postponement and subsequent ban on the presence of fans also wiped out virtually all ticket sales revenue, which was estimated at $ 800 million. That deficit went to the account of the governmental entities of Japan, possibly to the metropolitan government of Japan. Tokyo.

The organizers of Tokyo raised a record 3,300 millions of dollars from local sponsors, led by the Japanese advertising company Dentsu Inc, but many of the sponsors openly complained before the fair that their investment had been wasted without the presence of fans. Toyota, one of the top 15 IOC sponsors, withdrew all its fair-related advertising from Japanese television due to public discontent over hosting the Olympic Games in the middle of a pandemic.

The biggest winner seems to have been the International Olympic Committee which, by organizing the Olympic Games –even without viewers– an income from transmission rights of between 3,000 and 4,000 was assured millions of dollars. The Swiss-based IOC is basically a sports and entertainment business with nearly 75 percent of its revenue coming from the sale of broadcast rights and the other 18 percent from its sponsors.

So why did you want Tokyo the Olympic Games? Why would any city want them? German sports economist Wolfgang Maennig said that the Olympic Games offer minimal economic boost. So the benefit must be elsewhere. He often compares Olympic Games with organizing a big party for your friends and spending more, in the hope that they will be happy and remember you fondly.

“After three decades of empirical research, economists agree that Olympic Games they do not generate any significant positive effects on national (or even regional) income, employment, tax revenue or tourism, “Maening, a 1988 Seoul gold medalist in rowing, said in an email.

He assured that the benefits are other, such as the advantage of athletes to be in their country and, therefore, more medals for their delegations, new sports facilities, a greater international presence and accelerate redevelopment decisions. Japan’s performance in the fair is a true reflection of obtaining more gold medals and totals than in any other Olympic participation.

Most of the Olympic benefits go to construction companies and contractors. Tokyo built eight new venues. the two most expensive were the National Stadium, with a price of 1,430 millions of dollars and the new Aquatic Center, of 520 million. The next two Olympic organizers – Paris in 2024 and Los Angeles in 2028 – say they are drastically reducing the construction of new venues.

Although it is likely that Tokyo suffered short-term economic losses from the pandemic and the absence of fans, any loss is relatively small in a nation with a $ 5 billion economy.

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