By Mari Yamaguchi and Stephen Wade

Fans will be banned from Tokyo-area stadiums and arenas when the Olympics begin in two weeks, the city’s governor said Thursday after meeting with organizers of the pandemic-postponed games.

That means the Olympics will be a largely TV-only event, after the Japanese government put the capital under a COVID-19 state of emergency because of rising new infections and the highly contagious delta variant.

The declaration was made by Prime Minister Yoshihide Suga, and the spectator ban was agreed to by Japanese Olympic organizers, the International Olympic Committee, the International Paralympic Committee, and the metropolitan government of Tokyo.

It was a serious blow for Japanese taxpayers and local organizers of the games, which already had been postponed from 2020 by the coronavirus. Hundreds of millions of dollars in ticket revenue will be lost, and that must be made up by the government. Fans also have endured months of uncertainty about whether the Olympics will go ahead.

“Many people were looking forward to watching the games at the venues, but I would like everyone to fully enjoy watching the games on TV at home,” Tokyo Gov. Yuriko Koike said after the meeting. “It's gut-wrenching because many people looked forward to watching at the venues.”

Fans from abroad were banned months ago, and the new measures will mean no spectators in stadiums and arenas around Tokyo — both indoor and outdoor venues.

The ban covers Tokyo and three surrounding prefectures — Kanagawa, Saitama and Chiba. A smattering of events in outlying areas, like baseball in the northeastern prefecture of Fukushima, will allow a limited number of fans.

The state of emergency begins July 12 and runs through Aug. 22. The Olympics, which open July 23 and run through Aug. 8, fall entirely under the emergency period, while the Paralympics open Aug. 24.

“Taking into consideration the impact of the delta strain, and in order to prevent the resurgence of infections from spreading across the country, we need to step up virus prevention measures,” Suga said.

In principle, the July 23 opening ceremony at the new $1.4 billion National Stadium will be without paying fans, although some dignitaries, sponsors, IOC officials and others will be allowed to attend.

“We will have to review the situation about the dignitaries and stakeholders," organizing committee President Seiko Hashimoto said of the opening ceremony.

“No fans was a very difficult decision," she added.

Hashimoto acknowledged some regrets, particularly about the decision coming so late.

“We had no choice but to arrive at the no-spectator decision," she said. “We postponed and postponed, one after another. I have done some soul-searching about that.”

The emergency declaration made for a rude arrival for IOC President Thomas Bach, who landed Thursday in Tokyo for the games. He attended the virtual meeting on fans from his five-star hotel for IOC officials where he was self-isolating for three days.

“What can I say? Finally we are here,” Bach said, sounding upbeat as he opened the late night meeting that ended close to midnight. “I have been longing for this day for more than one year.”

Toshiro Muto, the CEO of the organizing committee, said many sponsors, federation officials and others would be considered to be “organizers” and thus would be allowed to attend venues. He said some might occupy public seating, but he said he did not know “the numerical details.”

Organizers had expected to generate about $800 million in ticket sales. Any shortfall — and it could be almost the entire amount — will have to be made up by Japanese government entities.

Japan is officially spending $15.4 billion on the Olympics, and several government audits say it's much larger. All but $6.7 billion is public money.

Two weeks ago, organizers and the IOC allowed venues to be filled to 50% of capacity, with crowds not to exceed 10,000. The state of emergency forced the late turnaround, which was always an option if infections got worse.

On Thursday, Tokyo reported 896 new cases, up from 673 a week earlier. It’s the 19th straight day that cases have topped the mark set seven days prior. New cases on Wednesday hit 920, the highest total since 1,010 were reported on May 13.

The main focus of the emergency is a request for bars, restaurants and karaoke parlors serving alcohol to close. A ban on serving alcohol is a key step to tone down Olympics-related festivities and keep people from drinking and partying. Tokyo residents are expected to face requests to stay home and watch the games on TV.

“How to stop people enjoying the Olympics from going out for drinks is a main issue,” Health Minister Norihisa Tamura said.

The rise in infections also has forced the Tokyo city government to pull the Olympic torch relay off the streets, allowing it only on remote islands off the capital's coast.

“The infections are in their expansion phase and everyone in this country must firmly understand the seriousness of it,” said Dr. Shigeru Omi, a top government medical adviser.

He urged authorities to take tough measures quickly ahead of the Olympics, with summer vacations approaching.

Omi has repeatedly called for a spectator ban, calling it “abnormal” to stage an Olympics during a pandemic.

A government COVID-19 advisory panel on Wednesday expressed concerns about the resurgence of infections.

“Two-thirds of the infections in the capital region are from Tokyo, and our concern is the spread of the infections to neighboring areas,” said Ryuji Wakita, director-general of the National Institute of Infectious Diseases.

The Olympics are pushing ahead against most medical advice, partially because the postponement stalled the IOC’s income flow. It gets almost 75% from selling broadcast rights, and estimates suggest it would lose $3 billion to $4 billion if the Olympics were canceled altogether.

About 11,000 Olympians and 4,400 Paralympians are expected to enter Japan, along with tens of thousands of officials, judges, administrators, sponsors, broadcasters and media. The IOC says more than 80% of Olympic Village residents will be vaccinated.

Nationwide, Japan has had about 810,000 cases and nearly 14,900 deaths. Only 15% of Japanese are fully vaccinated, still low compared with 47.4% in the United States and almost 50% in Britain.

Updated on July 8, 2021, at 2:34 p.m. ET with the latest details.

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