IDEAS home Printed from https://ideas.repec.org/p/boj/bojron/ron160121b.html
   My bibliography  Save this paper

Economic Impact of the Tokyo 2020 Olympic Games

Author

Listed:
  • Mitsuhiro Osada

    (Bank of Japan)

  • Mayumi Ojima

    (Bank of Japan)

  • Yoshiyuki Kurachi

    (Bank of Japan)

  • Ko Miura

    (Bank of Japan)

  • Takuji Kawamoto

    (Bank of Japan)

Abstract

The Tokyo Olympics, scheduled to be held in 2020, can be expected to have positive effects on the Japanese economy. Such effects will come mainly through the following two demand channels: (i) an increase in foreign tourism, and (ii) an increase in construction investment associated with this event. The number of foreign visitors to Japan has been growing steadily, mainly due to the easing of visa requirements and the depreciation of the yen. The government fs target of reaching 20 million foreign visitors by 2020 will likely be achieved. Nevertheless, taking other countries as a yardstick, there is still ample room for an increase in the number of foreign visitors, and it is certainly possible to further promote tourism in Japan, for example by reinforcing measures to attract foreign tourists in the run-up to the Tokyo Olympics. The experience of past host countries shows that the key is to achieve a lasting increase in tourism by promoting touristic resources nationwide. For Japan, this means, for example, establishing routes that allow tourists coming to Japan for the Olympic Games to make excursions to regional areas in addition to visiting the Tokyo metropolitan area. Construction investment associated with the Tokyo Olympics includes not only that directly related to the building of facilities for the Olympic Games, but also various types of indirectly related construction investment, such as the construction of new hotels and the refurbishment of existing hotels in the private sector, urban redevelopment, the construction of commercial facilities, and the enhancement of transportation infrastructures. Based on the experience of previous host countries, construction investment associated with the Tokyo Olympics is projected to increase substantially during 2017 and 2018 and then peak out toward around 2020. To avoid large business cycle fluctuations due to the boom-and-bust in construction investment, it is necessary to create new demand through various measures to help strengthen economic growth such as deregulation in addition to the measures to attract tourists mentioned above. At the same time, in order to meet such new demand, supply-side efforts should be taken to tackle the structural labor shortage facing Japan today by increasing labor productivity and further raising labor participation of women and the elderly.

Suggested Citation

  • Mitsuhiro Osada & Mayumi Ojima & Yoshiyuki Kurachi & Ko Miura & Takuji Kawamoto, 2016. "Economic Impact of the Tokyo 2020 Olympic Games," Bank of Japan Research Papers 16-01-21, Bank of Japan.
    • Handle: RePEc:boj:bojron:ron160121b
    as

    Download full text from publisher

    File URL: http://www.boj.or.jp/en/research/brp/ron_2016/data/ron160121b.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shawn Arita & Sumner La Croix & James Mak, 2012. "How China's Approved Destination Status Policy Spurs and Hinders Chinese Travel Abroad," Working Papers 201215, University of Hawaii at Manoa, Department of Economics.
    2. MORIKAWA Masayuki, 2015. "Foreign Tourists and Productivity of the Accommodation Industry (Japanese)," Discussion Papers (Japanese) 15049, Research Institute of Economy, Trade and Industry (RIETI).
    3. James A. Giesecke & John R. Madden, 2011. "Modelling the Economic Impacts of the Sydney Olympics in Retrospect – Game Over for the Bonanza Story?," Economic Papers, The Economic Society of Australia, vol. 30(2), pages 218-232, June.
    4. Richard Baldwin, 1989. "The Growth Effects of 1992," NBER Working Papers 3119, National Bureau of Economic Research, Inc.
    5. repec:hae:wpaper:2012-6 is not listed on IDEAS
    6. Yuka Mera & Yoshiyuki Kurachi & Naoko Ozaki, 2013. "Recent Increase in Foreign Visitors and Impact on Japan's Economy," Bank of Japan Review Series 13-E-4, Bank of Japan.
    7. Markus Brückner & Evi Pappa, 2015. "News Shocks in the Data: Olympic Games and Their Macroeconomic Effects," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(7), pages 1339-1367, October.
    8. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    9. John Madden & Matthew Crowe, 1998. "Estimating the economic impact of the Sydney Olympic Games," ERSA conference papers ersa98p498, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Logistical Hell of Postponing the Olympics for One Year
      by ? in Slate Blogs on 2020-04-14 21:04:57

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patrícia Crespo Sogas & Ivette Fuentes Molina & Àlex Araujo Batlle & Josep Maria Raya Vílchez, 2021. "Economic and Social Yield of Investing in a Sporting Event: Sustainable Value Creation in a Territory," Sustainability, MDPI, vol. 13(13), pages 1-15, June.
    2. Toshihide Yorozu & Ayana Shibasaki & Mitsuhiro Osada & Masato Higashi, 2017. "Real Exports and Real Imports: Methodology and Tips for Analysis," Bank of Japan Research Papers 17-04-20, Bank of Japan.
    3. Luša Đana, 2017. "Olympic Diplomacy and the Emerging States: Striving for Influence in the Multipolar World," Croatian International Relations Review, Sciendo, vol. 23(79), pages 73-102, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aghion, Philippe & Bacchetta, Philippe & Rancière, Romain & Rogoff, Kenneth, 2009. "Exchange rate volatility and productivity growth: The role of financial development," Journal of Monetary Economics, Elsevier, vol. 56(4), pages 494-513, May.
    2. Rosa Capolupo & Giuseppe Celi, 2008. "Openness And Economic Growth: A Comparative Study Of Alternative Trading Regimes," Economie Internationale, CEPII research center, issue 116, pages 5-36.
    3. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.
    4. Daniel Weimar & Markus Schauberger, 2018. "The impact of sporting success on student enrollment," Journal of Business Economics, Springer, vol. 88(6), pages 731-764, August.
    5. Victor Matheson & Robert Baade, 2016. "Going for the Gold: The Economics of the Olympics," Working Papers 1605, College of the Holy Cross, Department of Economics.
    6. Robert A. Baade & Victor A. Matheson, 2016. "Going for the Gold: The Economics of the Olympics," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 201-218, Spring.
    7. Massiani, Jérôme, 2018. "Assessing the economic impact of mega events using Computable General Equilibrium models: Promises and compromises," Economic Modelling, Elsevier, vol. 75(C), pages 1-9.
    8. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    9. Youngho Kang & Byung-Yeon Kim, 2018. "Immigration and economic growth: do origin and destination matter?," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4968-4984, October.
    10. Alcaraz, Carlo & Villalvazo, Sergio, 2017. "The effect of natural gas shortages on the Mexican economy," Energy Economics, Elsevier, vol. 66(C), pages 147-153.
    11. Khalil, Umair, 2017. "Do more guns lead to more crime? Understanding the role of illegal firearms," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 342-361.
    12. Thorsten Lehnert, 2019. "Asset pricing implications of good governance," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-14, April.
    13. Cho, Seo-young & Vadlamannati, Krishna Chaitanya, 2010. "Compliance for big brothers: An empirical analysis on the impact of the anti-trafficking protocol," University of Göttingen Working Papers in Economics 118, University of Goettingen, Department of Economics.
    14. Katsushi S. Imai & Raghav Gaiha & Ganesh Thapa & Samuel Kobina Annim, 2013. "Financial Crisis In Asia: Its Genesis, Severity And Impact On Poverty And Hunger," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(8), pages 1105-1116, November.
    15. Marco Botta & Luca Colombo, 2016. "Macroeconomic and Institutional Determinants of Capital Structure Decisions," DISCE - Working Papers del Dipartimento di Economia e Finanza def038, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    16. International Monetary Fund, 2016. "Republic of Poland: Selected Issues," IMF Staff Country Reports 2016/211, International Monetary Fund.
    17. Arturas Juodis, 2013. "Cointegration Testing in Panel VAR Models Under Partial Identification and Spatial Dependence," UvA-Econometrics Working Papers 13-08, Universiteit van Amsterdam, Dept. of Econometrics.
    18. Díez-Esteban, José María & Farinha, Jorge Bento & García-Gómez, Conrado Diego, 2016. "The role of institutional investors in propagating the 2007 financial crisis in Southern Europe," Research in International Business and Finance, Elsevier, vol. 38(C), pages 439-454.
    19. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    20. Nam, Changwoo, 2016. "Impact of Corporate Tax Cuts on Corporate Investment," KDI Policy Forum 264, Korea Development Institute (KDI).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boj:bojron:ron160121b. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bank of Japan (email available below). General contact details of provider: https://edirc.repec.org/data/bojgvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.