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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 ** trillion Japanese yen in Tokyo Prefecture alone, and about ** trillion Japanese 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 were postponed by one 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 ** 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 *** trillion yen, generated by investment and expenditure directly connected to the 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 ** 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 the use of permanent facilities and the Olympic village, urban development of the city, an expanding sports and culture industry, and stimulating the tourism industry.
Along with this estimate of increase in demand, the government calculated the overall economic ripple effect to be at ** trillion Japanese yen. Of the projection, roughly **** trillion yen was as a result of the direct impact of the Olympic and Paralympic games, and the rest of around ** trillion yen was from longer term effects. Furthermore, an increase in new employment of approximately **** million people in the country was also anticipated.

Uncertainty

As of January 2021, the fate of the Tokyo 2020 Olympic Games seemed undecided. The host country, organizers such as the International Olympic Committee (IOC), and sponsors were intent on holding the Games, while the Japanese population lost its previous enthusiasm. With COVID-19 still out of control organizers face the challenge of creating a safe environment for the Olympics. To achieve this, extra expenses are necessary, and organizers planned to settle on a trimmed down version of the Games to avoid the risk of infection and to cut down on expenses. Whether the expectations from July 2019 will hold true under such circumstances remains to be seen.