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Will Japan’s Osaka Expo become a ‘tax-eating hippopotamus’? Expected cost doubles

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Panoramic view of Yumeshima, an artificial island in Osaka, Japan, where the 2025 Osaka Expo will be held. The round construction site where the world’s largest wooden building, ‘Ring’, with a diameter of 615m, will be built can be seen at a glance. Osaka =

As the cost of Japan’s Osaka-Kansai Expo, which opens in April 2025, is increasing like a snowball, voices of criticism are growing in Japan. This is because the cost of constructing the expo has increased nearly twice as much as originally expected, showing signs of becoming a ‘tax-eating hippopotamus.’

According to Japanese media on the 22nd, the Japan International Expo Association (the organizing committee) reported the estimated cost of constructing the expo at 235 billion yen (about 2.1216 trillion won) at a meeting held the day before with the Japanese government and Osaka Prefecture. This is 1.9 times the original forecast of 125 billion yen.

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The association already increased the cost once to 185 billion yen in December 2020 due to design changes that reflected heat measures. This is the second adjustment. The association explained to the Japanese government and local governments that it was reexamining the cost of constructing the expo site as the cost of construction materials and labor rose due to rising prices.

The construction cost of Osaka Expo is shared one-third by the Japanese government, Osaka local government, and the business community. However, all entities that have to bear the cost of the repeated increase in construction costs are in an awkward mood.

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Expo Minister Yasutoshi Nishimura, Minister of Economy, Trade and Industry, said, “We will proceed with the review based on the general principle that each party will bear one-third.”

However, Osaka Governor Hirofumi Yoshimura showed a cautious attitude, saying, “We will closely check as we requested the government not to increase the amount further during the first increase.” The Osaka Prefectural Assembly adopted an opinion requesting that the government take responsibility and respond if costs increase further during the first increase in 2020. Even in the Japanese business community, which covers expo costs through donations, there is a strong opinion that “it is not easy to raise more donations.”

The Japanese public’s reaction was also negative. In a survey conducted by the Asahi Shimbun on the 14th and 15th, 71% of respondents responded that they “cannot understand” the increase in Expo construction costs. As an additional 20 billion yen is being spent on expo expenses, and plans for government support for this are being discussed, voices are growing over whether too much public tax money is being spent on the expo.

Tokyo =

Source: Donga

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