The Bank of Japan said that the 2020 Tokyo Olympic Games "will likely boost Japan's economy by 0.2-0.3 of a percentage point on average each year until 2018, offsetting some of the pain from another sales tax hike planned in 2017," according to Leika Kihara of REUTERS. The estimate by the central bank, made on request by PM Shinzo Abe's administration, "underscores the government's hope that the Olympics will draw fresh investment and more overseas tourists to jump-start a stagnant economy." In a report assessing the economic impact of the event, the BOJ said that "investment on new hotels, venues and infrastructure related to the games will reach a cumulative" 10T yen ($82.8B) by '20 (REUTERS, 12/28). KYODO reported the BOJ said that the Games "are expected to generate" from 25T yen to 30T yen ($208B-$249B) in sales and revenue for the economy from '14-20. The central bank said that the estimates "reflect an increase in infrastructure investment related to the sporting extravaganza and tourism." The BOJ said that tourism "has been surging," and visitors to Japan are expected to reach 33 million in '20 if the current trend continues, surpassing the government’s goal of 20 million by that year.
Koya Miyamae, an economist at SMBC Nikko Securities Inc., said, "This is a reasonable estimate. There is no doubt that the Olympic Games is good news for the BOJ." The BOJ said that in addition to those economic effects, further growth "can be expected from tweaking the government’s growth strategy to take advantage of the events."
It also said that "more than 700,000 workers will be needed altogether in sectors from construction to tourism for the event, raising the need to better utilize Japan’s women and elderly" (KYODO, 12/28).
