Monday, September 9, 2013
2020 Olympics Could Add Y150tln To Economy
TOKYO (Nikkei)--Tokyo's successful bid to host the 2020 Summer Olympics has raised hopes for a big economic boost over the next seven years.
- The inland "Heritage Zone" is home to the Tokyo Metropolitan Gymnasium and other facilities used in the 1964 Summer Olympics.
Athletes from around the world will gather in Tokyo to compete in 28 sports to be held from July 24 to Aug. 9 at 37 venues. These will be located within a relatively small area allowing athletes, officials, and spectators to take advantage of the city's well developed infrastructure.
The Tokyo Metropolitan Government and others have estimated preparations for the Olympics, including construction of new stadiums, will generate direct economic effects worth 3 trillion yen to the Japanese economy. Private-sector economists forecast the total contribution could be as high as 150 trillion yen.
Host With The Most
Advanced transport infrastructure and excellent public safety in Japan should help the Olympics run smoothly. Tokyo's railways, which carry 25.7 million passengers a day, are world-renowned for their punctuality.
To ensure Olympic athletes and officials get to their events on time, special lanes will be set aside on expressways and main roads linking Narita Airport, the Olympic village and other important sites. These "Olympic Lanes" will run for 317km in all.
Tokyo's reputation for safety was undoubtedly big pluses for its bid. One senior Metropolitan Government official called Tokyo "one of the most advanced and safest cities in the world." While campaigning for the Games, Tokyo Gov. Naoki Inose repeatedly boasted people who lose their wallets in the city can expect to get them back with the cash still inside. He was not exaggerating. More than 50,000 police officers, private security guards and volunteers will be on duty for the Olympics.
- Tokyo's railways, which carry 25.7 million passengers a day, are world-renowned for their punctuality.
Close To Home
According to Tokyo's Olympic bid committee, the game's opening ceremony will be held at the National Stadium in Tokyo's Shinjuku Ward, which will be renovated to hold around 80,000 spectators. The ceremony is scheduled to start at 8 p.m. on July 24, 2020.
All Olympic events other than the knockout round for men's and women's soccer will begin July 25. The plan to hold events close to one another was praised by the International Olympic Committee and a factor in Tokyo's successful bid.
Of the 37 sports venues, 33 will be in or near Tokyo, with soccer the only exception. In addition, 28 out of the 33 venues in greater Tokyo will be within 8km of the Olympic Village to be built on Tokyo Bay in the Harumi district of Tokyo's Chuo Ward.
The site of the Olympics will be divided into two zones. The inland "Heritage Zone" is home to the Tokyo Metropolitan Gymnasium and other facilities used in the 1964 Summer Olympics. The National Stadium will be rebuilt at a cost of 130 billion yen to raise its seating capacity from 54,000 at present, and to install a retractable roof. The redesigned stadium will have a sleek, futuristic design and is scheduled for completion a year before the Games.
- The opening ceremony will be held at the National Stadium, which will be renovated to hold around 80,000 spectators.
New facilities will be built mainly in the "Tokyo Bay Zone." Many will be large, such as the 20,000-seat Aquastics Center, and so will greatly change the look of the city.
The 2020 Summer Olympics will be followed by the Paralympics, to be held between Aug. 25 and Sept. 6.
The total construction costs for the 2020 Summer Olympics are estimated at 455.4 billion yen. Other significant economic effects include the cost of organizing the event, increased demand for lodging and transport, purchases of goods by visitors, higher demand for TVs and likely increases in land prices.
By attracting people, goods and capital from all over the world, the Olympics could help spark an economic revival in Japan. The Tokyo Metropolitan Government and others estimate a direct economic impact of 3 trillion yen over the period from 2013 to 2020. They also expect 150,000 jobs to be created.
By industry, the services sector will receive the biggest economic benefit, estimated at 651.0 billion yen, followed by 474.5 billion yen for construction companies and 277.9 billion yen for retailers. With corporate capital spending expected to increase, financial and insurance companies are forecast to get a lift of 117.8 billion yen.
Eiji Kinouchi, chief technical analyst at Daiwa Securities Co., puts the economic effects of the Games at 95 trillion yen, predicting tourism will double over the next seven years.
Including an estimated 55 trillion yen gain from Prime Minister Shinzo Abe's "national land reinforcement" program brings the total economic benefit to 150 trillion yen, Kinouchi said.
(The Nikkei Olympic special edition, Sept. 8)