Postponed Tokyo Olympics 'to kickstart' Japan economy: IOC

The postponement of 2020 Tokyo Olympics will provide an economic boost to the coronavirus-hit Japan in the year 2021, a senior International Olympic Committee (IOC) official claimed on Thursday as he said that conducting the Games in 2021 could be a "very positive opportunity for an economic stimulus" that could "kickstart the economy again." for the world’s third-largest economy – Japan.

With the deadly COVID-19 taking almost the entire world under its dreaded wings, the IOC and Japan, in the month of March, took the historic decision to postpone the Olympics by one year with the opening ceremony now scheduled to be held on July 23, 2021.

The COVID-19 pandemic has made a huge body blow to the global economy with economists predicting a second Great Depression with around $9 trillion wiped out.

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"I think there will be a lot of countries and cities around the world wishing for a similar opportunity," IOC official John Coates said.

Some economists have predicted that postponing the quadrennial Games by a year would reduce Japan’s GP by around $6 billion and that could be only recouped if the Olympics take place.

Coates claimed Japanese Prime Minister Shinzo Abe "may well have had in mind that your country may be in a recession then and this would be an opportunity for a great economic stimulus".

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Organisers had earlier said that the postponement of the Games would come major ramifications and there will be “massive” additional cost from the $12.6 billion the Games were supposed to cost-shared between the Japanese government, Tokyo 2020 and the host city.

Coates said that they would use the time in hand to look at a different way of reducing the additional costs.

Postponing the Olympics is an unprecedented task that starts with managing the venues, hotel bookings, volunteers, etc. Given the situation surrounding COVID-19 pandemic improves in coming months, then the Tokyo Olympics would not only come as a welcome event in the world of sports but would also help in reviving the Japanese economy, which has not only taken a hit due to the pandemic but also for the postponement of the Games.