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, "undated". "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," Review of Economic Studies, Oxford University Press, 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

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


    Cited by:

    1. 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.

    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.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.