- Investors have been urged to “go for gold” after Tokyo secured the 2020 Olympics. After witnessing the success of the 2012 London Olympics, businesses from around the world will be looking to make the most of the 2020 Games in the Japanese capital, with experts already drawing comparisons between the two events.
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Japan has ample experience in putting on international sporting events and, like London, Tokyo boasts excellent infrastructure such as a transport system that can move hundreds of thousands of tourists around efficiently and a large hotel sector that can house them comfortably.
The well-developed city managed to secure the 2020 Olympics by beating off competition from Madrid and Istanbul. The news has already reaped positive economic gains, boosting stocks and giving a lift to consumer confidence which will play into Prime Minister Shinzo Abe’s plan to revive the world’s third-biggest economy.
A 2.3% surge in the Topix index was seen early on, extending its 2013 increase to 37%. Developers and construction companies led gains, and are likely to be a focal investment area in the run up to the international event. The government plans to put $10bn of spending behind hosting the Games, which is far lower than events in London and Beijing, but still a considerable amount.
Mr Abe will hope that the event will boost economic sentiment as a whole, rather than just create short-term gains on the stock markets. His reform efforts have thus far reaped little reward, although economic momentum certainly seems to be moving back in the right direction.
The Prime Minister used the announcement to stave off controversy surrounding a recent radioactive leak at the damaged Fukushima nuclear plant. He flew to Buenos Aires, Argentina, from St Petersburg to address the international community, saying the event will be in “safe hands”.
TMF Group has an office in Tokyo where our local staff can help global businesses capitalise on the improving economic sentiment and set up in time for the Games. With legal, HR and payroll and tax workforces, we can take the hassle out of international expansion, leaving you free to focus on your global ambitions.