The Tokyo Organizing Committee of the Olympic and Paralympic Games has announced that the latest estimate for the Games' total expenses is 1.35 trillion yen, unchanged from the previous year's estimate.
For the first time, the organizing committee earmarked 37 billion yen to prepare for unforeseen events such as typhoons. This is the final estimate for the expenses, which will be paid together with the Tokyo metropolitan government and the central government. The organizing committee has released such estimates at the end of every year.
Domestic sponsor revenue, the main source of revenue, is estimated at 348 billion yen -- a record high in Olympic and Paralympic history -- with an increase of 28 billion yen from the previous year's estimate. As ticket sales have been upbeat, the committee expects the total sales to increase 8 billion yen to 90 billion yen.
Expenditures for transportation measures, such as securing parking lots near venues, are expected to rise by 6 billion yen to 41 billion yen, while personnel costs and expenditures for opening and closing ceremonies and other operations are estimated to increase by 19 billion yen to 124 billion yen.
At the Rugby World Cup held in Japan this autumn, three matches were canceled due to a typhoon. By taking this into consideration, the organizing committee has secured 27 billion yen, created from the difference between revenue and expenditures, as a "reserve fund" outside the budget framework. A total of 37 billion yen, including 10 billion yen secured by the Tokyo metropolitan government as "emergency response expenses," will be used to prepare for typhoons, earthquakes and other unexpected circumstances that would require more-than-expected personnel costs.
Of the total, the organizing committee will shoulder 603 billion yen, while 597 billion yen will be covered by the metropolitan government and 150 billion yen by the central government. As the venue for the race walk has moved from Tokyo to Sapporo, the organizing committee has been burdened with 3 billion yen, which the metropolitan government had initially planned to pay for costs such as constructing tents. Regarding who should shoulder costs stemming from the venue change of the marathon, the committee plans to discuss it with the International Olympic Committee.
The cost of hosting the Tokyo Games had been estimated at about 734 billion yen in 2013 when Tokyo won its bidding to host the Games. After that, it was discovered that the cost for venue construction had been underestimated, among other problems. At one point, some people noted that the figure could swell to 2 trillion yen to 3 trillion yen. After the organizing committee and the metropolitan government changed venue designs and revised plans to use existing facilities, the committee has maintained its estimate for the total expenses at 1.35 trillion yen since the end of 2017.
Waseda University Prof. Munehiko Harada, who specializes in sports management, said: "Securing the cost to prepare for a disaster that could threaten people's lives is understandable. But the organizing committee needs to continue examining if there are any wasteful expenses until the Games start. It is urged not to leave any debts after the Games."
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