After a one-year delay that is projected to cost organizers $3 billion, the Tokyo Olympics will no longer host any spectators.
Following another COVID-19 outbreak and a fourth state-of-emergency declaration, the Japanese Olympics Committee said no fans, foreign or domestic, will be allowed to attend. The opening ceremony is July 23.
The news is another hurdle for Japan’s economy after foreign visitors dropped to 4.1 million last year. In 2019, the country brought in $44 billion in revenue from 31.9 million tourists.
Before fans were banned, the event was already a financial burden.
- Total costs for the Tokyo Olympics could reach $25 billion.
- Japan projected ticket revenue to reach $830 million.
Sponsors like camera maker Canon announced plans to pull their promotion booths from the event. Other sponsors have scaled back entertainment plans for clients.
Around $3 billion was spent by roughly 60 Japanese companies for original sponsorship rights, and another $200 million was spent for contract extensions after the games were delayed, per Reuters.
By 2032, NBCUniversal will have paid a total of $12.5 billion for U.S. broadcasting rights since 2014. The broadcaster still thinks this year could be the company’s most profitable Olympics ever.