POSTPONEMENT OF TOKYO OLYMPIC 2020

Running head: POSTPONEMENT OF TOKYO OLYMPIC 2020
Postponement of Tokyo Olympic 2020
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POSTPONEMENT OF TOKYO OLYMPIC 20201
Introduction
International Olympic Committee of 2020 Summer Olympics of Tokyo have
announced that the Olympic Games would be postponed on account of coronavirus pandemic
that is wreaking havoc in various countries of the world. The Olympic Games is one of the
largest sporting event which brings together athletes and the fans from various countries of
the world. The games have been postponed till the year 2021 that would bear a great impact
on Japan. The cancelling of such a huge event have created the shockwaves among the people
of the world and it would have a disastrous effect on Japan (Nytimes.com 2020). The
accelerating pandemic have threatened the lives of the people in different countries and the
decision of postponement of Tokyo Olympics 2020 is meant to contain the spread of the virus
among the common people. This essay throws light on the effect of postponement of Tokyo
Olympics 2020 for Japan and how adversely it would affect the country.
Discussion
Historic decision of postponement of Tokyo Olympic Games 2020 would adversely
hit the economy of Japan. It was found towards end of year 2019, that total cost of games
would be approximately 1.35 trillion yen. The amount was divided in between Tokyo which
was paying 597 billion yen and organising committee of Japan which was contributing 603
billion yen. Central government of Japan was also playing an important role and it was
paying a sum of 150 billion yen (Japantimes.co.jp 2020). The various kinds of business
present in Japan have also contributed a great deal of money in the popular and grand event
with the help of the sponsorships. It have been brought out by the economists that spending
have already taken place by the various parties and hence the postponement would prove to
be fatal for the fate of the country. The country was already reeling under the effect of
controversial sales tax that was implemented in the year 2018 and the postponement of the

POSTPONEMENT OF TOKYO OLYMPIC 20202
Olympic Games would sound the death knell for the country. The tourism sector in Japan was
already struggling before the outbreak of coronavirus pandemic and the postponement would
severely hit the tourism in the country. The country had the diplomatic spat with that of South
Korea which was instrumental in prompting the boycott calls in the country. The visitors of
South Korea made up second largest contingent of tourists to the Japan and hence the
diplomatic spat would prove to be adverse for the fate of Japan (Wbur.org 2020). The
outbreak of the virus have further reduced the number of the people who are visiting from
South Korea along with China that have greatly cost the exchequer of the country. It have
been brought out by the official estimates that number of the foreign visitors to the country
have fallen by 58.3 % in the year 2020 and there have been a plunge of 87.9 % tourists who
were coming from China (Newsweek.com 2020). The consumer spending have been found to
be weak in the country and the postponement would leave a detrimental effect on the
economy of the country.
Coronavirus pandemic have pushed Japan towards recession and the GDP of the
country have contracted to a great extent owing to the influence of the pandemic. The
postponement of games would further worsen situation in the country and it would have an
effect on consumer confidence of Japan. The country would have to face the problem of
securing of venues after the postponement that would raise the challenges for the organisers
of the event. The exhibition facility called Tokyo Big Sight is the primary broadcaster centre
for Olympics and a part of it was reserved for the purpose of the games (Cnbc.com 2020). It
had felt that it would make up for the loss in the nest year with the help of full schedule of the
events. In the event of the games taking place in the next year, it would have to cancel the
other events and as a result it would have to pay the penalty to the contracted users. The
broadcasting is another important arena that would be hardly hit owing to the postponement
of the games. The US television network NBC had paid IOC $ 4.38 billion so that it can gain