The International Olympic Committee selected Tokyo as the host city for the 2020 Summer Olympics on Saturday, according to Jere Longman of the New York Times.
Madrid and Istanbul were the other cities that entered Saturday's voting with high hopes, but Madrid was eliminated in the first round of voting, and Istanbul lost the stand-off with Tokyo in the final round.
The selection of Tokyo is likely aimed at helping Japan recover from the devastating earthquake and tsunami in 2011 that sent shock waves across the globe.
Adam Westlake of the Japan Daily Press noted in June that Japan would receive a $38 billion economic boost if Tokyo were to become the host city of the 2020 Olympics.
Last week, Ayai Tomisawa of Reuters noted Tokyo-listed shares had risen 17 percent since June 13, and that was before Tokyo was actually selected for the Summer Games.
Tokyo has also planned well for the event. Not only would Japan receive a great economic boost for hosting the Olympics, it also "only" bid $5 billion to $6 billion for the right to host the Summer Games, compared to a $19 billion bid from Istanbul, according to Ed Hula of Olympics news site Around the Rings, via Tom Watkins of CNN.
Hula also told CNN that Japan has already amassed a $4.9 billion budget for the Summer Games, and a $1 billion stadium that will be used for the Olympics is not considered an expenditure for the event because it will have already been constructed for the 2017 rugby World Cup.
Around the Rings' Ed Hula III reported that Tokyo's budget for the Olympics in 2020 is expected to be a little more than $3 billion.
So, not only will Japan see a generous hike in its economy due to the 2020 Olympics, it has also planned well enough (and cheaply enough) that it will be able to maximize profit.
That's not to mention the sense of national pride that comes with hosting the Olympics.
As relayed by Jere Longman of the New York Times, Japanese prime minister Shinzo Abe said, “When I heard the name Tokyo, I was so touched, overwhelmed. The joy was even greater than when I won my own election.”
Abe's emotions were mirrored by the celebrations taking place in Japan on Saturday.
A Japanese man was noticeably sobbing at the conference upon hearing the committee's decision, as noted by Jacob Steinberg of the Guardian. Pictures and video flooded in of Japanese citizens celebrating in the streets. The anxiety the country felt leading up to the IOC's decision essentially transmuted into sheer deliriousness.
That doesn't even mention the home-field advantage hosting the Olympics can do for a country.
When Beijing hosted the Summer Games in 2008, China won 51 gold medals (first) and 100 total medals (second). When London hosted the Summer Games in 2012, Great Britain captured 29 gold medals and 65 total medals, compared to 19 gold medals and 47 total medals in 2008.
Japan tabbed itself as the "safe" choice for the 2020 Summer Games, according to Longman, despite ongoing concerns with radiation from the damaged nuclear power plant in Fukushima. Given the way it set up its bid, you could also make the argument that it is the smart choice. Tokyo, Istanbul and Madrid all came into the voting on Saturday with problems, but Tokyo ultimately showed that it was more prepared for the Games and more equipped to host the 2020 Olympics.
Rewarded with hosting duties, Japan is now trending upward after the destructive earthquake and tsunami in 2011.