The Japanese government and the International Olympic Committee (IOC) have officially declared that the 2020 Olympics will take place from July 23rd, 2021 onward. The decision is very controversial around the world, especially in the host country, Japan, because of the COVID-19 situation. Should the Olympics really take place? Or should they be canceled? In this article, I will cover two different perspectives: the individual perspective and a business/economics perspective.
Individual Perspective: First of all, what do people in Japan think about the Olympics?
The above graph is the survey that asked more than 9000 Japanese citizens what they thought about the Olympics. The graph shows that Japanese citizens’ opinions about the opening of the Olympics are very spread. In August 2020, about 50% of the interviewees said that the Olympics could take place without any postponement. However, in June of 2021, only 36% of interviewees said so, and about 35% of the people interviewed thought that the Olympics should be canceled. As time goes by, it seems that more people are against the Olympics going ahead.
In the background of such a result of the survey, from an individual perspective, there is almost no merit in the Olympics taking place this summer because simply, allowing all Olympics players from abroad means we have to expect more covid cases will occur in Tokyo. In addition, the IOC and JOC (Japanese Olympic Committee) have made rules that all players do not need to be quarantined for 2 weeks even though other foreigners who do not relate to the Olympics do. And, they also set a rule that players are allowed to bring, buy alcohol whenever they want to even though the Japanese Government prohibits stores from serving alcohol after 9 pm in Tokyo. Such “special treatments” increase the dissatisfaction of Japanese citizens. In Japan, just like other countries in the world, people try to spend time in their home as much as they can even though most of them want to travel or hang out with friends. In such circumstances, making special rules just for Olympics players make people think that this is unfair and feel disrespected.
On the other hand, from a business perspective, the Olympics can benefit not only a country but also some companies. The organizing committee announced that the economic effect of the Olympics can be estimated as 16,365,000,000 dollars. It means that if the Olympics are canceled, the amount of money will be lost in some ways. For the Japanese government, they spent large amounts of money to maintain places such as Japan National Stadium and Olympic Village because they thought all budgets they spent could be taken back by taking place the Olympics so that they certainly want to take place the Olympics no matter what. The Olympics also affect domestic companies a lot. The below graph shows what 4,092 companies will think if the Olympics is canceled. It shows that about 41% of them think that it is better to cancel the Olympics in terms of companies’ profits prediction. However, about 59% of them think that they will get more profit if the Olympics takes place. It means that about 60% of companies in Japan think that the Olympics will somehow benefit them even though foreigners will not visit Japan. Companies think this way because even though people from foreign countries are not able to come to Japan, the Olympics itself has a large impact on companies, especially hotels, restaurants, and airline companies because people take planes to come to Tokyo, eat meals at the restaurants, and then stay at the hotels.
The Olympics should be a sports festival that everyone in the world enjoys. However, because of the spread of the pandemic, people argue who is responsible if the Olympics do not succeed, not how to make the Olympics better. In the background, many Japanese people disagree with the opening of the Olympics mainly for two reasons.
- They are concerned that the number of COVID cases will skyrocket once players around the world enter Japan.
- They feel they are treated unfairly by the government based on the special treatment that the government has made for Olympics players.
On the other hand, many companies in Japan think that they are able to take advantage of the Olympics as a chance to gain their profits while some of them don’t consider the Olympics as a big opportunity due to the prohibition of foreigners to enter Japan. It is interesting to see the different reactions toward the Olympics between citizens, and companies due to their consideration from different perspectives. Anyhow, the Olympics will begin in about 3 weeks from now. I hope the Olympics will succeed without any problems related to coronavirus and give hope to those who have suffered from the virus…