Estimated economic impact of Tokyo 2020 Olympics and Paralympics Japan 2019

As of July 2019, it was expected that the Tokyo 2020 Olympics and Paralympics would have a positive economic impact on Japan. It was estimated that the economic impact would be approximately 20 trillion Japanese yen in Tokyo Prefecture alone, and about 32 trillion yen nationwide. The Japanese government expected long-lasting social, economic, and cultural benefits from measures related to the 2020 Summer Olympics and Paralympics. The 2020 Summer Olympics were originally planned to be held from July 24 to August 9 in Japan but postponed for about a year due to the global coronavirus pandemic (COVID-19).

Increase in demand

In Tokyo Prefecture alone, the government expected an increase in general demand of around 14 trillion yen, both as an immediate and long term result of the 2020 Olympics and Paralympics. The direct increase in demand was estimated at around two trillion yen, generated by investment and expenditure directly connected to Olympic and Paralympic games. This investment included constructing permanent venues, developing energy infrastructure or security and managing public relations. The government also projected approximately a 12 trillion yen long-term demand through projects which would be carried out before and after the opening of the 2020 Olympics and Paralympics. These included use of permanent facilities and the Olympic village, urban development of the city, an expanding sports and culture industry, and stimulating the tourism industry.

Economic ripple effect

Along with this estimate of increase in demand, the government calculated the overall economic ripple effect of around 32 trillion yen as mentioned. Of the projection, roughly five trillion yen was as a result of the direct impact of the Olympic and Paralympic games, and the rest of around 27 trillion yen was from longer term effects. Furthermore, an increase in new employment of approximately 1.94 million people in the country was also anticipated.

Estimated economic impact of Tokyo 2020 Olympics and Paralympics from 2013 to 2030 in Japan as of July 2019*

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Sources

Release date

July 2019

Region

Japan

Survey time period

July 2019

Supplementary notes

*Based on Tokyo Metropolitan Government estimate in March 2017.
Estimate target period:
2013 (the year Tokyo's candidacy was declared) to 2030 (ten years after the Tokyo 2020 Games).

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Statistics on "Tokyo 2020 Olympics and Paralympics"

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