Japan’s economic losses would likely amount to about 1.81 trillion yen ($17 billion) in case of cancellation of this summer’s Tokyo Olympics and Paralympics, media reported on Tuesday, citing the Nomura Research Institute.

According to Kyodo news agency, the institute has warned of even bigger economic losses if the government declares a new state of emergency to combat yet another spike of COVID-19 in the country after holding the Tokyo Olympics and Paralympics as scheduled.

“Even if the games are cancelled, the economic loss will be smaller than (the damage done by) a state of emergency”, Takahide Kiuchi, an executive economist at the Nomura Research Institute, said as quoted by the media outlet.

According to the data, holding the Tokyo Olympics without spectators will result in 1.66 trillion yen ($15 billion) in revenues, which is some 146.8 billion yen ($135 million) less if domestic spectators attend arenas.

Last week, International Olympic Committee Vice President John Coates said that Tokyo would host the Summer Olympic Games even if a state of emergency was declared in the Japanese capital.

The Summer Olympics in Tokyo were initially scheduled for 2020 but were postponed in the spring of last year amid the coronavirus pandemic. The games are to take place this summer, from 23 July to 8 August. The event is supposed to feature the largest number of athletic disciplines, 33, as well as categories, 339.

The island nation is currently witnessing a spike in virus cases, triggered by mutated variants, as well as a shortage of hospital beds and medical staff in some areas under a state of emergency.