Nomura Research Institute: Japan Would Lose $16 Billion with Games Cancellation

A recent report published by the Nomura Research Institute noted that canceling the Tokyo 2021 Olympic Games would result in the country of Japan losing approximately $16 billion. 

The research was led by Takahide Kiuchi, the top economist at the institute. According to Kiuchi, the country already lost about 6.4 trillion yen during the first lockdown last spring. 

“If the (Olympic Games) trigger the spread of infections and necessitates another emergency declaration, then the economic loss would be much greater,” Kiuchi told news outlet Reuters. 

“These calculations suggest that the decision of whether to hold or cancel the Games should be made from the perspective of infection risk rather than economic loss.” 

The country of Japan is currently under another state-mandated lockdown amongst rising Coronavirus cases. During the original lockdown in 2020, the country’s economy suffered a 4.8% loss for the year. According to the Japan Times, economists have estimated that the most recent lockdown may cost the country an additional $9.2 billion. 

When originally granted the rights to host the 2020 Olympic Games, Japan’s government estimated that it would cost about $13 billion. However, due to the pandemic, the cost of hosting the games has nearly doubled, as it is estimated to cost more than $26 billion. 

In recent weeks, there have been rising concerns about the Games amid rising coronavirus case numbers in Japan, as the country has re-entered a state of emergency. On May 26, Japanese newspaper and official Olympic sponsor, the Asahi Shimbun published an editorial urging Japanese Prime Minister Yoshihide Suga to either cancel or delay the 2020 Tokyo Olympics. However, the International Olympic Committee has repeatedly reassured the public that the Games will continue as planned. 

On May 27, Japan reported 4,300 new COVID-19 cases, with a 7 day average of 4,200 cases per day according to the World Health Organization. Cases in the country hit their all-time high on May 13, 2021, with nearly 7,500 cases reported. In addition, Japan has only vaccinated approximately 5.3% of its population of 126.3 million people. 

 

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trains, shopping, and ekiden
1 month ago

The country of Japan is currently under another state-mandated lockdown amongst rising Coronavirus cases.”
 
Who is writing this stuff? I live in Tokyo. There is no lockdown. No social distancing. Schools are all open. Everyone is working. Trains crowded, shopping crowded.
 
There was also no lockdown in 2020. Schools closed for 1 week in April 2020. That’s it. Restaurants and bars closed before 8pm, because covid infects after 8pm apparently, but not during the day while shopping or on crowded trains.
 
Dear world, what Japan reports is not what happens here. Remember Fukushima? Fudging on all reports to posture assertiveness and control? Insert here. They want to appear concerned without inconveniencing their lives. Masks are about it here.

Breaking Bad News
Reply to  trains, shopping, and ekiden
1 month ago

Absolute “social harmony” right sensei?

trains, shopping, and ekiden
Reply to  Lama
1 month ago

Yup, that’s why me and my team of documentary film makers are focused on educating Japan about this issue…. in Japan!

I have been researching dolphins for 7 months, interviewing players in the cruelty slaughter industry, and we just started releasing videos on one of the aquarium ring leaders, Enoshima aquarium. They, along with Shimonoseki, are starting a new cruelty based association (Japan aquarium association). They are trying to get aquariums that voted for JAZA to remain in WAZA in 2015, to now suddenly turn against those gains and join their ass. to once again support cruelty slaughter aquired dolphins.

You already know all this though, right?

Your Vice link focuses on one person, Ren Yabuki, in Taiji.… Read more »

Breaking Bad News
Reply to  trains, shopping, and ekiden
1 month ago

Sheesh

MIKE IN DALLAS
1 month ago

The utterly feckless ‘media class’ in Japan wants nothing more than a cancellation of the Games. They could have done this gracefully more than a year ago — and let a non-lockdown country like USA hold the Games in a more modified way. But, NO! The eternal two-faced approach of the government of Japan vs. The Media, et al — continues. It is a travesty to the athletes who are preparing 110 % for the Games in less than 2 months. I hope the GAMES go forward!! Test events in Tokyo have shown: it is safe! Get a grip, and do the right thing!

Comet
Reply to  MIKE IN DALLAS
1 month ago

💯

Delta
Reply to  MIKE IN DALLAS
1 month ago

What’s the definition of a „non-lockdown country“? Those with the highest number of deaths?

Ol' Longhorn
Reply to  MIKE IN DALLAS
1 month ago

Then there’s the utterly feckless doctor class (Tokyo Medical Practitioners Association) in Japan who also want the Games cancelled. Then there’s this other utterly feckless professor, Hiroshi Nishiura, with 421 scientific publications in the areas of viral pandemic to his credit, who also wants the Games postposed. Guess they’re just all utterly feckless and there’s no there, there. https://www.reuters.com/lifestyle/sports/tokyo-doctors-call-cancellation-olympic-games-due-covid-19-2021-05-18/.

Breaking Bad News
Reply to  MIKE IN DALLAS
1 month ago

What has come of the ancient “social harmony” that Sensei Ekiden has spoken about…one wonders, are we returning to the turmoil of feudal times!? (Cue the Kabuki music)

Corn Pop
Reply to  Breaking Bad News
1 month ago

This is a cry for help by the people of Japan . An 80% vehement opposition requires we embark on a regime change operation .

The problem is …..we are the Regime since 45. ..2nd thoughts WE know what is best for Japan . They must hold the Olympics because you know, it’s about us .

Last edited 1 month ago by Corn Pop
Breaking Bad News
Reply to  Corn Pop
1 month ago

Hostages in their own country…hmm, sounds familiar.

Aquajosh
1 month ago

If Japan cancels the Olympics, they will never again be permitted to host another one. They would be wasting their money even putting up a bid.

Istanbul (the runner-up for the 2020 Olympics) must be really pissed right now. Turkey has been open to tourists for months.

DrSwimPhil
Reply to  Aquajosh
1 month ago

The Champions League Final moved from Istanbul for a reason…

Lama
Reply to  Aquajosh
1 month ago

What’s more , Turkey is actually practicing quarantine

Dee
1 month ago

Very uncomfortable situation for the games organisers and Japanese government now.

Their guarantees have seen us well past the point of no return in regards to the games being cancelled in the least damaging way possible, both financially and reputationally for the IOC and Japan alike – If they drop the ball now, I think Japan can kiss goodbye to any hope of hosting another global event for a very long time.

commonwombat
Reply to  Dee
1 month ago

Realistically the “cancellation/redistribute the various sports to willing countries” boat sailed by about the end of January. Whilst there could, of course, be the last minute call to call it all off but you’re right in saying it would be a major knock to Japan’s national image and and even greater blow to the IOC who have often seemed to be existing in an alternate reality with their overall handling of the issue(s). Even with things going ahead, the Olympic brand is likely to be severely damaged. A “normal” Tokyo would have at least been a relief after Rio being “problematic” but two successive “misfires” is something they can ill afford; especially given the sharp decrease in public support in… Read more »

Corn Pop
Reply to  Dee
1 month ago

There is a lot of the world who understand Japan’s position & are sympathetic to the position they are in .

Last edited 1 month ago by Corn Pop
Dee
Reply to  Corn Pop
1 month ago

Sympathy begins to wain when you see the Japanese Govt doing next to nothing to combat the spread of covid, despite endless guarantees. ‘Blame the foreigner’ has become modus operandi in Japan during covid, with Japanese citizens asked to change very little about their daily routines while breaking out in to a xenophobic frenzy at the prospect of ‘foreigners’ spreading covid. One Japanese prefecture health centre has instructed Japanese people “not to eat with foreigners” in order to combat covid. That includes those who live in Japan, but aren’t ethnically Japanese.

They’d have had my total sympathy 6 months ago, but not now, the Japanese Govt and organisers created this mess through their inaction.

Last edited 1 month ago by Dee
Olympian
1 month ago

Qualified athlete here… word on the street is that we’re gonna be tested everyday and not allowed out of our rooms for most of the time (still unclear when exactly), it’ll be a prison regardless your vaccinated or not and despite of the efforts of most NOCs to get everybody vaccinated.

Friend of mine, swimmer from the Japanese national team confirms what “trains, shopping, and ekiden” is saying and laughs about the possibility of cancellation.

Hope that works to calm the alarming paranoid reporters out there.

Anonymoose
Reply to  Olympian
1 month ago

Good luck!

trains, shopping, and ekiden
Reply to  Olympian
1 month ago

Congrats on making it. It will be a very forgettable experience outside competition. If you come with a negative test, you will still be essentially in a prison, watched by a personal minder 24/7, with no freedoms, and in a hotel room mostly. Not my opinion unfortunately.

On May 15th there was world cup triathlon in Yokohama. I watched the race but also followed the athletes social media for the week before as they arrived and prepped. The airport was a monster wait upon entry. Very slow. Many posts about that bottleneck. I think they were all required to come with negative tests too. Made no difference.

Straight from airport to their hotel room. Many posts from hotel rooms looking… Read more »

Ol' Longhorn
Reply to  Olympian
1 month ago

You do realize the “alarming paranoid reporters” are just regurgitating statements from leading Japanese doctors’ organizations and leading scientists, right? They’re not going Q on us. What are they supposed to do, just ignore statements from the pandemic advisor to the government and the Tokyo Medical Practitioners Association? Hopefully it still goes on without incident, but it’s ridiculous to blame it on a “feckless” or “paranoid” media.

Bobo Gigi
Reply to  Olympian
1 month ago

I feel bad for the olympians of this year. Yes it’s a competition but it’s normally a party too. The village, watching other sports…. What you all describe above looks more like a prison.

About Nicole Miller

Nicole Miller

Nicole has been with SwimSwam since April 2020, as both a reporter and social media contributor. Prior to joining the SwimSwam platform, Nicole also managed a successful Instagram platform, amassing over 20,000 followers. Currently, Nicole is pursuing her B.S. in Biomedical Engineering at Worcester Polytechnic Institute, where she is an active …

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