TOKYO: A postponement of the Tokyo Olympic and Paralympic Games is expected to deliver a huge blow to the Japanese economy, with one private-sector estimate showing that the country will lose more than 3 trillion yen if the events are delayed to next year or later.

The International Olympic Committee said Sunday it will consider the possibility of pushing back the Tokyo Olympics, which is slated to open in late July this year.

The sporting events were expected to bring economic growth to Japan through increased infrastructure investment for venues and a boost in inbound travel demand as people from around the world would flock to Tokyo to watch the games.

According to estimates by Toshihiro Nagahama, chief economist at the Dai-ichi Life Research Institute, the almost already completed infrastructure produced economic effects worth 13.8 trillion yen through last year.

However, Nagahama said that inbound tourism demand would be affected by the postponement of the Tokyo Games, with the Japanese economy seen losing 3.2 trillion yen this year.

A postponement is expected to bring disappointment and confusion to the Tokyo Olympics' corporate sponsors. Around 80 companies are sponsors to the event, including major Japanese companies such as Toyota Motor Corp. and Panasonic Corp.

As Olympic and Paralympic Games are one of the world's two biggest sporting events along with the FIFA World Cup soccer tournament, many companies have invested in related events and advertisements to promote their products and services to the world toward the Tokyo Games.

"The amount of additional expenses (such as advertising costs) depends on how long the games will be postponed," an official of one company said, adding that it will closely watch a decision to be made by the IOC.

Meanwhile, some in the business world are concerned about the possibility of the games being canceled right before the currently scheduled opening or being held without an audience.

"Postponements are a minus for the economy, but a one-year delay is better than hosting in front of an empty audience," an executive of a major financial institution said.

JIJI Press