Tokyo’s hosting of the 2020 Olympic Games will generate up to ¥20 trillion in spillover effects for the economy, according to a projection released Monday.
The Institute for Urban Strategies said in its report that hosting the Olympics could create roughly 1.21 million jobs nationwide if the government gets around to deregulation.
The figure combines the institute’s estimate with the Tokyo Metropolitan Government’s projection of ¥3 trillion in positive economic effects partly based on demand for infrastructure.
According to the institute, hosting the Olympics is expected to bring about ¥16.4 trillion in positive effects thanks in part to tourism, which means more facilities will be needed to accommodate foreigners, and a boost in consumption.
The institute also predicts that jobs will be generated as more foreign companies enter the Japanese market to take advantage of the much-assumed deregulation.
The institute, part of the Tokyo-based Mori Memorial Foundation, also forecasted that the Olympics will push up Japan’s gross domestic product by around 0.3 percent on an annualized basis.
Noting that some cities have faltered after hosting the Olympics, the institute called for regulatory reform to ensure that the growth achieved as a result of the Games is “sustainable.”
The institute’s chairman is Keio University professor Heizo Takenaka, the economic and fiscal policy minister who served under Prime Minister Junichiro Koizumi. Takenaka is set to join a government panel to promote deregulation and corporate tax cuts through the creation of special economic zones.