How Tokyo Proposes to Fund the 2020 Olympic Games

Abstract

Tokyo has been chosen as the host city for the 2020 Summer Olympic and Paralympic Games ("2020 Tokyo Olympics"). In this report we see from the Tokyo Metropolitan Government's approach to fiscal management and its attitude to the Olympics thus far that the fiscal burden placed on it by the 2020 Tokyo Olympics has not only been less than that of the 1964 Olympics (as a result of the administrative and fiscal support provided partly by its long-term strategy for the capital, which it has pursued with disregard to the success or failure of its bid to host the 2020 Olympics, and partly by the Hosting Reserve Fund), but also that it is now in a strong position to cover the costs it is expected to incur as a result of the games. At the same time, however, it is clear that it still needs to keep a tight rein on its spending and raise any funds on favorable terms. We conclude that, as it raises funds in the run-up to the 2020 Olympics, it may be able to make good use of (1) resident-participatory-type publicly offered local government bonds ("Tokyo Olympic bonds"), (2) PFI projects and concessions, and (3) lotteries.

Keywords: Local Government Bond, Municipal Bond, Olympic, Local Public Finance

JEL Classification: H70, H74, N15, N25