The organising committee for the Tokyo 2020 summer Olympic and Paralympic Games has said it remains committed to cost-cutting efforts as it today (Friday) revealed unchanged budgets for the events through alterations within their constituent parts.
Tokyo 2020 has announced updated budgets for the Olympic and Paralympic Games with the Tokyo Metropolitan Government and the Government of Japan. These comprise the OCOG budget, which is the responsibility of Tokyo 2020, and the ‘Other Entities’ public budget of the Tokyo Metropolitan Government and the Government of Japan, which includes long-term investments for the city and country designed to serve future generations for decades after the Games.
As with the previous version released in December 2017, the OCOG budget remains balanced and privately financed by the International Olympic Committee (IOC), sponsors, licensing and ticket revenues at $5.6bn (€4.9bn) with no burden to taxpayers. This includes the costs of the Paralympic Games.
On the back of what it claims have been “sustained marketing” efforts, domestic sponsor revenues for Tokyo 2020 have increased by $100m to $3bn compared to the previous budget, with another $100m of revenue expected.
In terms of the shifting nature of the budget, Tokyo 2020 said transportation has risen by $100m to $300m, while Games operations costs have risen $100m year-on-year to $1bn. Tokyo 2020 said these costs are covered by a reduction in the existing contingency of $100m and savings achieved as a result of the IOC’s Olympic Agenda 2020 reform plan and its New Norm recommendations.
Tokyo 2020 said these recommendations have already produced savings in the Other Entities budget of $2.2bn relating to the permanent construction budget, as well as another $2.1bn savings in various operational areas benefiting both the OCOG and Other Entities budgets.
The Other Entities public budget has not increased and remains at $7bn. Out of this amount, $3.2bn is being invested in the nine new permanent venues, including the Olympic Stadium, which the Government of Japan will manage, as well as eight other venues which the Tokyo Metropolitan Government will manage, including the Tokyo Aquatics Centre.
Tokyo 2020 chief executive Toshirō Mutō said: “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 ¥600bn (€4.72bn/$5.39bn).”
Today’s news means the combined OCOG and Other Entities budget remains steady at $12.6bn. Tokyo 2020 last year revealed a Y150bn reduction in its budget to Y1.35tn. Tokyo 2020 has been engaged in continued efforts to cut costs, encouraged by the IOC to do so in order to attract future Olympic Games bidders.
When Tokyo won the hosting rights for the Olympics in September 2013, its bid outlined a proposed budget of ¥730bn.