The Institute for Urban Strategies at the Mori Memorial Foundation released on October 16th a ranking of the world’s top 40 cities, where Tokyo ranked 4th for six consecutive years. Though it was not successful with advancing in the list this year, Tokyo has a chance to move up to the 3rd place in 2020, when Olympic Games take place. It is expected that it will gain more presence given opportunities by successful hosting bid.

According to Global Power City Index (GPCI), London has been on top of the list since 2012 followed by New York and the overall score difference among them has widened. Tokyo, despite shrunk gap with No.3 Paris, was outdistanced by the top two cities. Plus, Singapore that ranked 5th and other Asian cities are pressing hard on Tokyo.

Tokyo’s strength lies in economic vitality, market size, human capital, research and development, living facility, ecology etc. what it lacks is, on the other hand, market attractiveness, regulations and risks, cultural resources, cost of living, traffic convenience etc. Evaluation of Tokyo in general remains unchanged. The indicators that in particular declined are high corporation tax rate because of post-earthquake reconstruction tax increase and small numbers in World’s top 300 companies, top 200 universities, and high-end hotels.

Shingo Tsuji, President of Mori Building said that Japan’s mutual goal is set as year 2020 to host a successful Olympic Games under the government’s initiative of National Strategic Special Zones. This is the last and biggest chance for Tokyo’s revitalization when the time for urban development is ripe, Tsuji said.

In 2012 GPCI, London took over No.1 from New York, which resulted from its efforts toward Olympic Games in the same year, it’s been said. The authorities promoted development of accommodations and infrastructures and inbound of foreign tourists. Supposing the effects London experienced can also occur in Tokyo, the Institute provided the outlook for 2020 that Tokyo would overtake Paris in 3rd place.

The outlook suggests that the number of stadiums would increase from 14 in 2013 to 18 in 2020, high-end hotel rooms from 7560 to 8868, foreign tourists from 4.1 million to 10 million. Playing host could have a ripple effect on economy, GDP per capital increasing from $96,330 to $98,943 and unemployment rate dropping from 4.5% to 3.7%.

What needs to be done for Tokyo to move up in the list is to strengthen the power of the city through hard and soft development by public-private joint cooperation. Tokyo took the advantage of 1964 Olympic Games to become one of the world’s leading cities. Most importantly, Tokyo at this opportunity should grow to be a global center that attracts various resources such as human capital, investment and information. (2013/10/22)