Tokyo 2020 final cost of JP¥1.4tn more than double original estimate

• Tokyo 2020 originally projected to cost US$7.3bn at the time
• Organisers say Games’ final outlay was US$213m less than December 2021 prediction

The organising committee of the Tokyo 2020 Olympics has revealed the final cost of the Games came to JP¥1.4 trillion (US$13 billion at the time).

At today’s rates, with the yen at a 24-year low against the dollar, the hosting figure is US$10.4 billion.

The projected cost of Tokyo 2020 has varied since the Japanese capital was named as host in 2013. Organisers had initially projected total costs to be JP¥734 billion (US$7.3 billion at the time). A report from the Japanese government’s Board of Audit in 2018 stated the cost of Tokyo 2020 was likely to reach US$25 billion.

The arrival of Covid-19, and subsequent year-long delay of the Games, had a dramatic impact on costs. A study by the University of Oxford, released in September 2020, revealed Tokyo 2020 was already the most expensive Summer Olympics in history.

In December 2020, organisers confirmed the postponement of the Olympics and Paralympics would cost an additional JP¥294 billion (US$2.2 billion today).

The revised budget for Tokyo 2020 was later pegged at US$12.6 billion, although it had been reported that the actual cost of the event would be at least twice that much.

The organising committee said the event’s final cost was JP¥200 billion (US$1.47 billion) less than projected in its pre-Games budget in 2020 and JP¥29 billion (US$213 million) less than the final costs prediction in December 2021.

Japanese authorities, primarily the Tokyo Metropolitan Government, covered about 55 per cent of the total outlay, setting the taxpayer back about US$7.1 billion.

The privately funded organising committee budget covered about US$5.9 billion, while the International Olympic Committee (IOC) contributed US$1.3 billion. Local sponsors parted with US$3.4 billion and organisers also listed US$500 million in income from an unspecified ‘insurance payout’.

Despite the hefty bill, and the loss of ticket sales due to the pandemic, organisers were able to save money by simplifying events and not having to host millions of fans.

Further Games may soon be heading to Japan after the city of Sapporo confirmed in January 2020 it had bid to stage the 2030 Winter Olympics. According to a Business Insider investigation, the Beijing 2022 Winter Olympics could have cost hosts China more than US$38.5 billion, nearly ten times higher than the country’s estimate.