About 1 million tickets are reported to have been sold to fans from outside Japan. Organisers have promised refunds, but this will be determined by so-called Authorized Ticket Resellers that handle sales outside Japan. These dealers charge fees of up to 20% above the ticket price. It is not clear if the fees will be refunded.
"We could wait until the very last moment to decide, except for the spectators," said Seiko Hashimoto, the president of the organising committee. "They have to secure accommodations and flights. So we have to decide early otherwise we will cause a lot of inconvenience from them. I know this is a very tough issue."
IOC President Thomas Bach called it a "difficult decision."
"We have to take decisions that may need sacrifice from everybody," he said.
The New Zealand Olympic Committee expressed its disappointment on behalf of the 1600 New Zealanders set to travel to Tokyo this July following the announcement.
NZOC CEO Kereyn Smith says although this situation is incredibly challenging for New Zealand fans and athletes, the NZOC understands the reasoning behind the decision.
"Our athletes thrive on knowing friends, whanau and fans are right behind them as they compete on the world stage. This time the support will be from back in New Zealand and not from the stands in Tokyo," Smith said in a statement.
"We understand this difficult decision was made to reduce public health risks in Japan and enable organisers to focus resources on delivering a safe and secure Olympic Games for athletes.
"While this situation is disappointing, we do know the best wishes of the New Zealand public will travel to Japan with the Team. Japanese fans are also known to be among the best crowds in the world and will be there to cheer on the New Zealand Team.
"We are now committed to working with partners at New Zealand Olympic Travel to work through the complex situation with the Tokyo 2020 organisers and will continue to advocate on behalf of supporters to find an equitable solution for New Zealanders."
The financial burden of lost ticket sales falls on Japan. The local organising committee budget called from $800 million income from ticket sales, the third largest income source in the privately finance budget. Any shortfall in the budget will have to be made up by Japanese government entities.
Overall, Japan is officially spending $15.4 billion to organize the Olympics. Several government audits say the actual cost may be twice that much. All but $6.7 billion is public money.
About 4.45 million tickets were sold to Japan residents. Organisers are expected next month to announce the capacity at venues, which will be filled by local residents.
The ban on fans from abroad comes just days before the Olympic torch relay starts Thursday from Fukushima prefecture in northeastern Japan. It will last for 121 days, crisscross Japan with 10,000 runners, and is to end on July 23 at the opening ceremony at the National Stadium in Tokyo.
The relay will be a test for the Olympics and Paralympics, which will involve 15,400 athletes entering Japan. They will be tested before leaving home, tested upon arrival in Japan, and tested frequently while they reside in a secure "bubble" in the Athletes Village alongside Tokyo Bay.
Athletes will not be required to be vaccinated to enter Japan, but many will be.
In the midst of Saturday's meeting, Bach and others were given a reminder about earthquake-prone northeastern Japan — and Japan in general.
A strong earthquake shook Tokyo and triggered a tsunami warning as Bach and others made introductory remarks before the virtual meeting. The strength was put a 7.0 by the US Geological Survey and the location was in northeastern Japan, an area hit by a huge earthquake and tsunami in 2011.
"I think the screen is shaking. Have you noticed the screen is shaking," Tamayo Marukawa, Japan's Olympic minister, said as she made her presentation from Tokyo talking remotely to Bach visible on a screen in Switzerland. "We're actually in the midst of an earthquake right now."
-AP