• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      8 hrs

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      9 hrs

      Finance

      CBN issues guidelines for QR codes operation in Nigeria

      9 hrs

      Finance

      Global Equities: Positive sentiment buoys global markets’ performance on vaccine rollout, Biden confirmation

      January 13, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Frontpage

      Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

      8 hrs

      Commodities

      Metals make sluggish gains on LME, SHFE, as investors anticipate US stimulus

      8 hrs

      WORLD BUSINESS & ECONOMY

      Smart home market profits to reach $176bn in 2025, rising by 127%  

      8 hrs

      Technology

      Zoom to float $1.5bn in fresh capital issue, approaches SEC

      9 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      NNPC moves to rehabilitate downstream infrastructure, openscontract bids

      8 hrs

      Companies

      Ardova enters acquisition talks with Enyo as part of expansion drive  

      8 hrs

      Oil and Gas

      NNPC reaffirms commitment to OPEC+ agreement   

      9 hrs

      Imo

      FIRST E&P faces CSR headwinds in Bayelsacommunities, ahead OMLs 83, 85 production start

      9 hrs

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

      Analyst Insight

      Stocks set for more record highs

      January 11, 2021

      Analyst Insight

      2021: Time for Nigeria to move into higher gear?

      January 11, 2021

      Analyst Insight

      The trouble with commissions

      January 5, 2021

Asia

Tokyo Olympics cost twice the initial estimate: why?

June 4, 2017939 views0 comments

Taxpayers beware: The cost of hosting an Olympics is likely to be far more than advertised.

The price tag on the 2020 Tokyo Olympics has ballooned to nearly twice the initial estimate, even after a major cost-cutting effort.

A major reason is that cities exclude large amounts of associated costs when they submit a bid to host the Olympics.

“Those numbers in the bidding file are almost fiction,” said Shinichi Ueyama, a Japanese public policy expert who led a Tokyo government investigation into the Olympics’ cost.

The bid figures include only the core components such as the main facilities so that the bids are easier to compare. Building design, security measures, transportation and other costs are largely excluded.Image result for Tokyo Olympics

It is common practice, but taxpayers may not be aware that the bid figures are incomplete, and the actual cost will end up far higher.

Tokyo 2020 organizers said this week that the estimated cost is now 1.4 trillion yen ($12.6 billion). When Tokyo was awarded the Olympics in September 2013, the total was 730 billion yen ($6.6 billion).

The cost of the 2012 London Olympics tripled from a bid estimate of $6.5 billion to $19 billion.

“Many advanced nations are now increasingly aware of the pattern and staying away from the Olympics,” said Ueyama, a professor at Keio University in Tokyo. “If you take a survey in any democratic country, people would refuse to have their tax money spent on costly sports events.”

Rising construction costs in Japan also contributed to the increase in in costs for Tokyo, as well as the addition of five new sports after Tokyo won the bid. Much of the increase, though, was for non-construction costs.

The cost would likely be even higher if it were not for growing IOC concern about host city costs.

The $51 billion price tag for the 2014 Winter Games in Sochi, Russia, led numerous cities to drop out of bidding for the 2022 and 2024 Olympics.

Thomas Bach, who took over as IOC president in 2013, has driven a cost-cutting agenda to entice cities to bid for future Games and minimize damage to the Olympic brand.

The IOC is encouraging the use of existing and temporary facilities instead of building new ones. Tokyo organizers have moved several events outside the city to do that.

Tokyo Gov. Yuriko Koike launched a further cost-cutting push after taking office last summer as one estimate for the 2020 Games rose to more than 3 trillion yen ($27 billion).

The effort delayed for six months an agreement on how the various parties will share the costs.

Under a cost-allocation agreement announced Wednesday, the city of Tokyo and the Tokyo 2020 organizing committee will shoulder 600 billion yen ($5.4 billion) each. The central government will contribute 150 billion yen ($1.4 billion).

A remaining 35 billion yen ($315 million) still needs to be sorted out between Tokyo and neighboring municipalities that will host some of the competitions.

Bidders almost always present the lowest estimate to promote an image that they are taking a conservative approach, according to a report issued last fall by the Tokyo investigation panel.

The organizing committee will eventually disband, and under the terms of the host city agreement, Tokyo taxpayers will be on the hook for any shortfall left behind.


Courtesy Newsrep

Share on Facebook Tweet Email
TagsJapanese Olympics Tax Taxpayer Taxpayers Tokyo
PreviousHow McDonald’s Corp. makes most of its money
NextPhilip Green fashion empire hit by 16% fall in profits

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Nigeria’s railway e-ticketing platform launch set for next week
  • Stringent regulations, business environment forced Stanbic IBTC out of BDC business
  • Copper faces downturn in H2 of 2021, analysts predict
  • NNPC moves to rehabilitate downstream infrastructure, openscontract bids
  • Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Renewed buy interest in banking stocks lifts Nigeria equities market as index rises 0.2%

Frontpage July 19, 2017

1
2

Financial markets await Emefiele’s 2019 policy thrust

Frontpage January 14, 2019

3

Nigeria’s apex bank cancels interest rate meeting, says rate to be held at 14%

Frontpage January 22, 2018

4

Crude oil extends gains in nearly two weeks on Asian equity recovery

Frontpage February 19, 2018

5

Equities market in weak rally, gains 0.11%

Frontpage August 1, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.