London (PRWEB UK) 25 September 2013
While the exact figure is something up for debate, it is certain that the UK benefitted financially from hosting the London Olympics 2012 (£9.9bn total revenue according to the government – BBC 19th July 2013).
Now that Tokyo has been named as the host for 2020, what are the chances they will see a return on what is likely to be an even greater level of expenditure and what will it mean for the Yen?
Vantage FX’s Tim Plummer comments:
“One of the most poignant effects of hosting global anticipated events, particularly the Olympics, is that it provides a noticeable improvement in consumer, as well as business, confidence, which will have both short and medium-term impacts on the host economy.
“In the UK the Olympics cost £8.77bn and in return a revenue of £9.9bn was expected to have been made. With regards to the Japanese economy there are no guarantees that a profit will be made, and so the currency may not be directly affected. Economists might say an external benefit will arise from the event, which will improve Japan as a whole, including benefitting the economy.”
This is indeed what is predicted to happen in the UK; it is expected that by 2020 the London Olympics may have improved the UK economy by as much as £40bn. So even though Tokyo could actually make a loss on the actual event, a few years down the line it may make a profit.
Sustained improvement in confidence in Japan and the Yen may not be visible yet, but chances are the successful appointment of the Olympics to Tokyo may already be changing their long term outlook.
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