POSTED: Saturday April 18th 2009
FOR IMMEDIATE RELEASE
Tokyo 2016 offers financial stability and major commercial opportunity to the Olympic Movement
The bid offers a highly-realistic financial plan, strong corporate interest in Olympic and Paralympic sport in Japan
18 April 2009 –Tokyo 2016 is offering the Olympic Movement both financial security and a major commercial opportunity in the fastest-growing region of the world. Japan’s Bid to host the Olympic and Paralympic Games at the very heart of its exciting capital today made the pledge on the foundation of a highly-realistic financial plan, strong corporate interest in Olympic and Paralympic sport in Japan and a potential prime-time television viewing audience of 3 billion people.
Tokyo 2016 Bid officials explained that Japan’s corporate community – made up of 3 million companies – are active supporters of sport and are financially strong, with 47 of the Fortune 500 companies based in Tokyo – more than other leading cities including London, New York, Paris, Beijing and Seoul. Many of Japan’s best-known companies have already expressed their support financially by becoming Official Partners of the Tokyo 2016 Bid or as part of a 1,600-strong national business federation that has pledged its support for Tokyo 2016. On Friday, the Japanese Olympic Committee announced six new Gold Partners for its new top sponsorship category.
Tokyo 2016’s highly-realistic financial plan starts with its fully sustainable Games concept, that makes maximum use of existing competition venues and infrastructure. Its ultra-compact plan sees 23 out of 34 venues existing, with the development planned for 5 permanent state-of-the-art new venues and 6 temporary, guaranteeing a sustainable legacy showcase for the Olympic Movement. Tokyo 2016 considers itself recession-proof because the Tokyo Metropolitan Government has already secured in the bank 400 billion Yen (USD 3.7 billion) for developing venues and Olympic infrastructure.
For its Organising Committee budget, Tokyo 2016 conservatively predicts to generate revenues of USD 2.89 billion through a combination of local sponsorship and official suppliers (USD 676 million), ticket sales (USD 719 million), licensing (USD 114 million), IOC contribution and TOP sponsorship (USD 1.01 billion), and other categories (USD 345 million) that include donations and commission revenue.
Tokyo is promising to maximise ticketing revenue through an effective sales strategy, while eliminating ambush marketing. To ensure full stadia, tickets will start at $9 at the Tokyo 2016 Games. Lower prices are offered for children to ensure youth is a key focus of the Games.
Dr. Ichiro Kono, Chair and CEO of Tokyo 2016 said:
“Tokyo 2016 is offering a stable financial base in a difficult economic time. The Tokyo Metropolitan Government has already secured the land and banked the money for all new venues, which is a responsible budget of USD 3.7 billion. We are talking about the richest metropolitan government in the world with a 2009 annual budget equivalent to USD 73 billion. If the Tokyo Metropolitan Government was a nation, it would have the 15th highest GDP in the world.
“But that is just the start. Our Organising Committee budget is fully guaranteed by our National Government and we have been both thorough and conservative in the estimated revenues Tokyo 2016 will generate. That is a foundation we offer to the Olympic Movement before we start looking at the incredible commercial opportunities for every single Olympic and Paralympic sport. With 34 million people in Tokyo alone waiting to fill every venue, and billions of people across Asia waiting to become long-term supporters of the Olympic Movement, our sporting and economic legacy is guaranteed.”
Full political support and no legal obstacles
The same day as presenting to the IOC Evaluation Commission on the themes of ‘Finance’ and ‘Marketing’, Tokyo 2016 also covered the themes of ‘Political and economic climate and structure’, ‘Legal aspects’ and ‘Customs and immigrations formalities’.
Tokyo 2016 enjoys strong political support at all levels in Japan. The National Government has given Tokyo 2016 its full and guaranteed backing, stating its commitment to provide ‘all-embracing support’ for the Games. On behalf of the Government, Japan’s Olympian Prime Minister, Taro Aso, addressed the IOC Evaluation Commission in person for the Official Welcome presentation and hosted the IOC delegation at the Geihinkan State Guest House for dinner on Saturday.
At each event he was joined by Japan’s Secretary of State and Olympian, Seiko Hashimoto; Minister for Foreign Affairs, Hirofumi Nakasone; Minister of Education, Culture, Sports, Science and Technology, Ryu Shionoya; and former Prime Minister and Chair of the Parliamentary Member Group for the Support of the Tokyo 2016 Games, Yoshiro Mori – who are typical of the unwavering support at the top of Japan’s political establishment for Tokyo 2016.
As a further demonstration of its commitment, the National Government has guaranteed to provide, at no cost to Tokyo 2016 full security, medical, customs, immigration, and other government-related services required for the 2016 Games. Both the upper and lower Houses of Parliament adopted a resolution providing full support for the Tokyo 2016 Bid.
A Parliamentary Member Group for the Support of the Tokyo 2016 Games was established in 2008, which today has 250 cross-party members and continues to grow.
On the subject of ‘Legal aspects’, Tokyo 2016 has no legal obstacles to planning or staging a successful Games. ‘Customs and immigrations formalities’ is equally straightforward: no visas will be needed for passport carriers who hold Olympic identity and accreditation cards, no work permits will be required and all items imported for Games-use will be free from customs duty.
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