(REUTERS) – The total budget for the 2020 Tokyo Olympic Games was revealed on Wednesday (December 21) as 15-16.8 billion U.S. dollars, but with further savings probably to come.
Organisers announced the figure at an open meeting that included the International Olympic Committee (IOC), the Tokyo city and Japanese national governments and other municipal authorities forming a fourth group.
The estimated overall cost of 1.6 to 1.8 trillion yen ($15-$16.8 billion) is the first official figure released by the organisers, who had said three weeks previously that the figure might run as high as two trillion yen, which the IOC said was too high.
Tokyo governor Yuriko Koike changed the plans in order to to cut costs at three venues: rowing and canoeing; swimming; and volleyball.
“By revising the three venues, we have managed to cut down our costs by 400 million yen. But this is not just about cutting budgets, it is about considering the aspect of sustainability and how we can leave a legacy; something that has been repeatedly emphasised,” Koike said.
She said Tokyo would discuss sharing some costs with neighbouring prefectures – the fourth party at the meeting.
IOC Vice-President John Coates, speaking from outside Japan by video, said he was pleased with the progress and especially delighted that the $4.7 billion portion for the organising committee’s budget would not come out of the public purse.
“The Games budget of 4.7 U.S. billion is revenue neutral, so it is a budget that is privately-funded through a significant IOC contribution, through sponsorship, through ticket sales and licensing revenues, meaning zero, zero cost to the public purse, and we are very pleased,” Coates said.
Tokyo won hosting rights largely on its reputation for efficiency, but organisers have been embarrassed as budget projections were seen soaring far beyond the 734 billion yen that was estimated during the bid process.
A Tokyo city government panel commissioned by Koike reported in September that expenses could balloon to as much three trillion yen. The IOC is worried such lofty figures could scare off future bidders, especially given that cities like Rome and Boston dropped out of the 2024 race.
Tokyo organisers said construction costs have jumped due to rebuilding after Japan’s earthquake and tsunami five years ago. They also said the projected cost of temporary facilities had more than doubled as the bid file had not accounted for items like design costs, surrounding greenery and temporary toilets.