Tokyo 2020 unveils ‘significant’ cut in Games budget

Source:AFP Published: 2017/12/22 22:33:40

Tokyo 2020 organizers on Friday unveiled a "significant" cut in their budget for hosting the Games, as the city comes under pressure to keep a lid on spiralling costs.

The Games budget now stands at a total of 1.35 trillion yen ($12.6 billion), organizers said in a statement.

This represented a cut of $1.4 billion compared to the previous version of the budget unveiled in December 2016, and $0.3 billion 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 and security," organizers 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 organizing 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 interim figure.

"We hope to draft [budget] plans so that Coates will say 'good job' at the end," Nakamura said.

The Tokyo 2020 organizing committee will cover $5.6 billion of the costs, with the Tokyo city authorities and Japanese government stumping up a further $7.0 billion.

The $5.6 billion organizing committee budget is covered by ticket sales, licensing and sponsorship and the statement hailed an increase of $0.9 billion in sponsorship revenue.

However, Tokyo 2020 admitted it still needed to find $0.2 billion to balance the books.

Posted in: OLYMPICS

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