Sunday, September 19, 2021

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Economic impact of Tokyo Games estimated at ¥1.6 tril.


Japan’s economy stands to gain a ¥1.6771 trillion windfall from the Tokyo Olympic and Paralympic Games, according to Takahide Kiuchi, executive economist at Nomura Research Institute, Ltd.

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The estimate included factors such as revenue from the sale of officially licensed merchandise and the construction of temporary facilities for the Games.

The figure was down from an earlier estimate of ¥1.8108 trillion, when the decision was made to bar overseas spectators. The absence of domestic spectators at most venues may have resulted in a ¥133.7 billion hit, including lost ticket and accommodation revenue.

The government has declared a state of emergency, in effect until August 31, for six prefectures including Tokyo and Osaka. Since the fourth state of emergency went into effect in Tokyo on July 12, there have been fewer opportunities to dine out and stay at hotels or other lodgings. Kiuchi projects that the economic loss from the states of emergency could total ¥2.19 trillion.

Yet the strong performance of Japanese athletes at the Tokyo Games stands poised to stimulate new consumption.

Katsuhiro Miyamoto, professor emeritus at Kansai University, has said that if major department stores and supermarkets were to hold post-Olympics sales in honor of the athletes for about a week or so in August, they could cash-in on a gold rush of their own, to the tune of ¥143.6 billion.

Published : August 10, 2021

By : The Japan News/ANN