The Olympic Games is not just a sports competition, but it is a serious financial event. The fact is that countries that organize the Games may both spend and earn a lot of money. Such outstanding occasions, as a rule, bring significant income to everyone who is involved in its organization, especially the services sector.
However, this year, Japan risks losing $1.4 billion, if it decides not to invite tourists. Restaurant and hotel businesses will suffer enormous losses. The Olympic and Paralympic Games to take place in Tokyo will cost the country $1.37 billion. What is more, without tourists it will never recoup the spending.
At the same time, the Olympic Games were postponed because of the coronavirus pandemic. This, in turn, has greatly affected the cost of the event, increasing the budget of the Games to $15.9 billion. According to economists at Nomura Research Institute, the lost profits may surge, if the country’s government bans Japanese fans from attending the event and other public places.
Notably, the decision to limit the number of visitors due to the exclusion of foreigners was taken by the Tokyo Organizing Committee of the Olympic and Paralympic Games and other international committees.
