As the Rio Summer Olympics 2016 closed, Tokyo as the next host for the games quickly stirred excitement for the next edition, with a superb performance in the closing ceremonies
Tokyo has less than four years left to drum up the “best Olympic games” – or so that’s what Japan’s Prime Minister Shinzo Abe boldly claims. As if to showcase his commitment to this goal, he dressed up as the beloved Nintendo game character, Super Mario, during the performance like it’s no big deal. But the flashy performance is only the tip of the iceberg.
The next host is about to deal with costs of preparations already reaching 2 trillion yen amid Japan’s lackluster economy.
Business still somehow appears promising. So far, the Tokyo 2020 Olympic Games already have a dozen worldwide brand partners, which includes Coca-Cola, McDonald's, Omega, Panasonic and Samsung, with 40 domestic brand partners as of press time.
According to Bank of Japan’s research, Economic Impact of the Tokyo 2020 Olympic Games, the country can likely reach 33 million foreign visitors by 2020, substantially higher than its initial target of 20 million given the ramped up marketing efforts of the tourism sector.
The booming tourism industry can likely offset the costs and provide lasting impact with the estimated expenditure—expected around 10 trillion yen— of both the private and public sector for infrastructure as the games loom in.
These finances and expected income will likely push Japan’s annual real GDP growth by about 0.2-0.3 percentage points in the period until 2018, but the government has to work doubly as it will likely wane down after the scheduled construction work.
Looks like Abe needs more than Super Mario’s pipes after all.