The estimated cost of hosting the Tokyo Olympics has now risen to £ 11.5bn after the Games were postponed a year due to coronavirus infection; The Olympics are set to open on July 23, 2021, followed by the Paralympics on August 24.
The AP
Last updated: 22/12/20 9:57 am
Tokyo Olympics costs have risen sharply due to the one-year delay and associated costs
The official cost of the postponed Tokyo Olympics has gone up 22 percent, the local organizing committee revealed Tuesday as they unveiled their new budget.
In an online press conference, organizers said the Olympics will now cost $ 15.4bn (£ 11.5bn) to platform, up from a $ 12.6bn (£ 9.4bn) budget last year.
The additional $ 2.8bn (£ 2.1bn) is the cost of a one-year delay due to coronavirus pandemic, with additional costs coming from renegotiating contracts and measures to combat COVID-19.
The budget shows that the Swiss-based International Olympic Committee is contributing $ 1.3bn (£ 1bn) to the cost of the games but its contribution to Tokyo will not increase, according to Gakuji Ito, chief executive finance of the organizing committee.
Studies by the Japanese government over the past few years, however, show that costs are higher than officially reported and are at least $ 25bn (£ 18.6bn).
The Olympics are scheduled to open on 23 July 2021, with the Paralympics continuing on 24 August.
Tokyo initially estimated that the Olympics would cost around $ 7.5billion (£ 5.6bn) when the IOC handed over the games in 2013.
A study from Oxford University earlier this year said Tokyo was the most expensive Summer Olympics on record.
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Japanese government agencies are responsible for all costs except $ 6.7bn (£ 5bn) in a privately funded operating budget.
Organizers in October announced cost reductions of $ 280m (£ 209m), cutting out frills including hospitality donations.
However, no cuts were made to the sports program with a full complement of 11,000 athletes and tens of thousands of officials, judges and sponsors expected to be in attendance.
Decisions on follow-up and prevention measures for the pandemic are expected to be confirmed in 2021.
Japan has controlled COVID-19 better than most countries with just over 2,800 deaths due to the virus. But new issues have been rising for months, adding to public skepticism about the Olympics.