The organizers of the Tokyo Olympics, delayed by the coronavirus pandemic, cost the final cost of the game 1.42 trillion yen, almost double what IOC expected when it awarded the venue in 2013.
Tokyo Olympic officials, who met on Tuesday before the body broke up at the end of the month, released details of the final figures, which were swollen by the pandemic but reached record heights much earlier.
Due to recent fluctuations in the exchange rates between the dollar and the Japanese currency, it is difficult to calculate the cost. When the game started a year ago, one dollar was worth 100 yen. One dollar on Monday was equivalent to 135 yen, the highest level of US currency against the yen in 25 years.RELATED
Victor Mathieson, a sports economist at the College of the Holy Cross and author of numerous works on the Olympics, wrote to the Associated Press by email: The numbers do not affect the “feel” that the organizer has about the event.
For the Tokyo Olympics, the organizers were using an exchange rate of 107. In this case, 1.42 trillion yen is equivalent to a final price of 13.33 billion dollars.
Matheson and Robert Baade investigated the costs and benefits of the Olympics in a paper entitled “Going for Gold: The Economics of the Olympics.”
They write: “The decisive conclusion is that, in most cases, the Olympics are a business that causes losses to the host city. They only bring net profits under very special and unusual circumstances.”
Accurately measuring the cost of the Olympics (who pays, who benefits, and what costs are games and not) is a moving maze.
The organizer has set an official cost of $ 15.4 billion at the end of the tournament a year ago.
Four months later, they said the number had dropped to $ 13.6 billion. According to them, the savings were due to the fact that the absence of the public reduced costs such as security and arena maintenance.
However, the organizers lost at least $ 800 million in income because they didn’t sell their tickets. This is a number that Tokyo had to cover.
According to a 2020 Oxford University study, universities in Tokyo were the most expensive in history.
There is an undeniable fact: more than half of the cost was funded by public resources: the Tokyo government, the national government and other public institutions.
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