As we enter 2019, we can now officially say that the Tokyo Olympic Games are ‘next year’. As we look ahead to the biggest international competitive sporting event now less than 600 days away, Tokyo organizers announce that its overall budget figures have remained unchanged.
Committed to cost-cutting efforts, the Organizing Committee of the Olympic Games’ (OCOG) says its budget remains balanced and ‘privately financed by the International Olympic Committee (IOC), sponsors, licensing and ticket revenues at US$5.6 billion with no burden to taxpayers.’‘(Astralasian Leisure Management)
Although Tokyo 2020 says that transportation has risen US$100 million to US$300 million, while Games operations costs have risen US$100 million year-on-year to US$1 billion, sustained marketing efforts have increased domestic sponsor revenues for Tokyo 2020 from US$100 million to $3 billion, with another US$100 million of revenue expected.
Additionally, increasing costs have been covered by ‘a reduction in the existing contingency of US$100 million and savings achieved as a result of the IOC’s Olympic Agenda 2020 reform plan and its New Norm recommendations.’ (ALM)
Tokyo 2020 Chief Executive Toshiro Muto stated “with less than 600 days to go until the Games, we are finally entering a fully-fledged implementation phase. As many aspects of the Games have become more detailed, Tokyo 2020 has seen increases in some new areas but has successfully reduced expenditures in other areas, resulting in the updated budget remaining the same as the previous version.
“There is still a lot of work to be done to control expenditures, but with the cooperation of the IOC, Tokyo 2020 will continue to make best efforts to maximise revenues, contain costs and keep its budget within ¥600 billion (US$5.39 billion).”