For Japan PM Abe Olympic Games 2020 is the point of honor - he does not care if people will die. That's why Japan puts obstacles to coronavirus testing.
It is a long and convoluted story. 1964 Tokyo Olympics - organized by Abe's grandfather - then Japan PM (yes, Japan is democracy but political establishment is hereditary) - are seen as a start of Japan's economic miracle.
Although I am far from an Abe fan, I honestly don't think this is it. I think what he is doing is casting doubt on whether or not the Olympics will go ahead. This will slow down the rate at which cancellations in hotel accommodations will happen. I think the idea is probably to cushion the shock to the economy. He'll probably cast doubt as long as he feasibly can and then announce a postponement.
At the moment the IOC and Japan are at a stalemate because neither want to be responsible for paying for the result of a cancellation.
Canada stepping up to the plate is important because hopefully it encourages other countries to follow suit.