With less than a month left until the opening ceremony of the Tokyo Olympic Games and Paralympic Games on July 23, organizers announced that only 10,000 local spectators will be allowed for each venue.
Seiko Hashimoto, president of the Tokyo 2020 organising panel, said attendance would be limited at up to half of a venue's capacity. However, he warned the coronavirus pandemic could force a change in plans.
"If there's an announcement of a state of emergency during the games, all options like no-spectator games will be examined,'' Hashimoto said.
Spectators will be required to wear face masks, refrain from shouting or cheering and travel directly to and from venues, Hashimoto said.
Spectators from overseas have already been banned, officials said.
Japan's public remains opposed to the hosting of the Games.
Some 65% of the public want the Games postponed or cancelled, a survey by broadcaster Asahi News Network found.
Almost 70% of the respondents said they thought the event would not be held safely and securely, according to the survey.
While Covid-19 cases have been down in Tokyo in recent weeks, the decrease has not been as pronounced as officials had hoped.
Health authorities reported 376 new cases on Monday, up from 304 from a week earlier.
Tokyo has recorded nearly 170,000 infections since the pandemic broke out, and more than 2,100 fatalities.
Prime Minister Yoshihide Suga said the Games may be held without spectators if a state of emergency is declared in Tokyo or anywhere a competition venue is situated, according to The Japan Times.
Limiting the number of spectators at the Games would minimize the expected positive economic effect from the Games by about 5%, Takahide Kiuchi of the Nomura Research Institute said.