There has been a backlash against the Olympics. Public support of hosting an Olympic Games has dropped as cities like Rome, Hamburg and Boston ceased their bids for the 2024 Games.
Sochi cost USD50 billion, Beijing USD40 billion. At USD15 billion, the cost of the Athens Olympics put significant pressure on the Greek economy, and likely contributed to that country’s government debt crisis. This is a public burden a lot of cities and countries are no longer willing to accept.
In late September, an expert panel established by the Tokyo Metropolitan government released their report re-examining the costs of the Tokyo 2020 Summer Olympics. Their estimate – the total cost of Tokyo 2020 could balloon to JPY3 trillion, or about USD30 billion. The original budget set at bid submission: about one fourth of that.
The new governor of Tokyo, Yuriko Koike, campaigned on the premise that she would rein in the costs of the Tokyo 2020 Olympics. A few weeks after becoming governor, she vowed to do what it took to bring down costs.
Before I became governor, there must have been certain procedures that went into the cost calculations and I would like to speak to 2020 organizers and the national government about that. I will not leave white elephants to the taxpayers. I will leave a good legacy. That is the direction I want to see the games take.
And already, Koike is looking at changes of venues of certain sports in order to whittle away at costs.
The first suggestion from Governor Koike is to use a different venue for canoeing and rowing. The current plan approved by the IOC is to develop the Sea Forest Water Sports Center, two land-fill islands located in Tokyo Bay, right next to the Tokyo Gate Bridge. One of the islands would be developed to host equestrian events. The other island would be used for the mountain bike course. The water way in between the two islands would be the raceways for rowing and canoeing.
But because cost estimates for the Sea Forest venues reported to have climbed significantly, Koike has been looking into moving the rowing and canoeing events to the Naganuma Boat Park in Tome, which is in Miyagi Prefecture. This move is being considered not only to decrease costs, but also highlight the reconstruction efforts in the area since the Tohoku earthquake and tsunami of March 11, 2011.
To the chagrin of Tokyo2020, the IOC, and the various rowing and canoeing federations, Tome is 400 kilometers from Tokyo.
International Olympic Committee (IOC) president, Thomas Bach, has been working with all parties to get to a mutually agreed state. According to this article, he is reluctant to agree to plans where athletes do not come first in the decision making process, which could mean he prefers not to move the canoeing and rowing events to the Northern part of Japan.
Bach instead recommended that a four-party panel, which includes the IOC, The Tokyo Games Organizing committee, Tokyo and Japanese government representatives. It is the IOC’s leaders hope that the four parties together can work to decrease costs to the satisfaction of all. The article explained that it is in the IOC’s best interests to defuse this internal conflict as soon as possible.
“The IOC is worried that news of this wrangling over the 2020 Olympics will spread through the world,” a Japanese government source said. “It probably decided it can no longer leave the issue in the hands of the Tokyo metropolitan government or the organizing committee alone.”
Rowing and canoeing are just the beginning. Next up for discussion? The venues for gymnastics and volleyball.
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