Tokyo - Tokyo
2020 Olympic organisers on Friday unveiled a "significant" cut in their budget for
hosting the games, as the city comes under pressure to keep a lid on
The overall games budget now stands at a total of 1.35 trillion yen ($12.6 billion), organisers said in a statement.
This represented a cut of $1.4 billion compared to the previous
version of the budget unveiled last December and $300 million compared
to an interim figure agreed in May.
"Going forward, Tokyo 2020 will continue to seek further cost
reductions, particularly in the areas of event operations, transport,
accommodation and security," organisers said in a statement.
They hailed a "significant reduction in costs" resulting from "sustained efforts ... to avoid recourse to public funds."
"This will not be the end of the cost reduction efforts," vowed
Hidemasa Nakamura, chief financial officer of the Tokyo 2020 organising
committee, at a press conference.
The IOC's Games coordination commission chairman John Coates said in
October Tokyo should aim to cut overall costs by $1 billion from the
"We hope to draft (budget) plans so that Coates will say 'good job' at the end," Nakamura said.
The Tokyo 2020
organising committee will cover $5.6 billion of the costs, with the
Tokyo city authorities and the Japanese government stumping up a further
$7 billion between them.
The $5.6 billion organising committee budget is covered by ticket
sales, licensing and sponsorship and the statement hailed an increase of
$900 million in sponsorship revenue.
However, Tokyo 2020 admitted it still needed to find $200 million in
"expected additional revenue" to balance the books and vowed it would
"continue to look at ways" to secure the extra funding.
Tokyo organisers are under pressure to keep costs down, with the
International Olympic Committee worried that ballooning price tags for
hosting the games will deter cities from bidding for the showcase event.
The rollout of the centrepiece Olympic stadium turned into a fiasco
when Prime Minister Shinzo Abe tore up the blueprints amid public anger
over its price tag.
In 2016, an expert panel warned the total costs could exceed an eye-watering $25 billion.
In its bid, Tokyo estimated the bill for the Games at a little over $7 billion.