Japan’s manufacturing hub Aichi bets on Asian Games to drive growth despite soaring costs

Aichi Prefecture in central Japan is counting on the 2026 Asian Games to provide an economic boost and enhance ties with Asia, despite the event's ballooning budget. The Games in Nagoya and the wider Aichi area officially commence on September 19, although football and basketball competitions have already started. The event will see 45 countries and regions compete in 43 sports, marking the 20th edition and the third time Japan will host the Games.

The budget for the Games has surged from an initial estimate of 100 billion yen to 370 billion yen (US$2.38 billion). Aichi governor Hideaki Ohmura attributes the cost increases to the COVID-19 pandemic, a depreciating yen, geopolitical instability, and rising resource prices. To manage costs, organizers have avoided building a new athletes' village and instead used a cruise ship for accommodation, as well as constructing new facilities like Mizuho stadium and Aichi Prefectural IG Arena.

Despite the financial challenges, Ohmura estimates the Games will generate an income of 3.7 trillion yen nationwide, with Aichi alone benefiting by 1.8 trillion yen. The event will host about 20,000 athletes and delegates, along with a large influx of fans and visitors. For Aichi, the Games are part of a broader strategy to strengthen economic connections with Asia and attract more investment.

As one of Japan's key manufacturing hubs and wealthiest regions, Aichi is home to major companies like Toyota Motor Corporation and has the country's second-largest per capita income, after Tokyo. Ohmura hopes the Games can also promote friendship and peace in the region.