The "concert economy" is becoming a new growth driver for Singapore's economy and international reputation.
From March 2 to 9, American singer Taylor Swift held a total of 6 concerts at the Singapore National Stadium. More than 300,000 tickets were sold out quickly when they were put on sale, and the concert was also packed.
Erica Tay, head of macro research at Maybank, estimated that Swift’s concert is expected to bring about S$350 million to S$500 million (approximately 1.89 billion yuan) to Singapore. to 2.7 billion yuan) in tourism revenue.
Hosting large-scale concerts is not just an economic expense for Singapore.
"The Singapore government has always wanted to break the stereotype of Singapore and create the image of a thriving fun city." Ms. Huang, who has lived in Singapore for a long time, told China Business News, "The international impression of Singapore is that it is neat and tidy. , the stereotypical 'garden city', so these concerts and musicals have been introduced to Singapore one after another. The Singapore government also provides great support through the Tourism Bureau, whether in terms of funds, facilities, venues, etc."
▲Singapore (Source: Xinhua News Agency Photo )
Concert Economics
HSBC's ASEAN economist Liu Yun (yun liu, transliteration) said in a recent report that business travel has always accounted for the majority of Singapore's exhibition industry. The increase in large-scale global music events is a boon to Singapore's tourism-related services industry, which accounts for 10% of Singapore's gross domestic product (GDP).
In addition to ticket revenue, Oxford Economics said in an analysis report that the economic impact of live music events is broad. For example, concert marketing costs, legal services, and professional services all require substantial payments, and outside audiences also generate revenue for local restaurants, hotels, bars, retailers, and small businesses.
Taking the Swift concert as an example, the travel website trip.com stated that compared with March 15-23, Singapore’s inbound flights increased by 186% during the Swift concert (March 1-9) , accommodation bookings increased by about 460%, and attractions and travel bookings soared by 2,373%. Singapore hotel occupancy rates in March are expected to reach their highest level in the first eight months of this year, according to hotel analytics firm Smith Travel Research (str).
Moody's Analytics economist Heron Lim analyzed that given Singapore's uniqueness in Southeast Asia and limited guest rooms, even considering that March is the off-season for leisure travel, it is expected that every room in the week of Swift's concert will Revenue per available room for sale (revpar) will be more than 50% higher than the March 2023 average.
Han Teng Chua (transliteration), an economist at DBS Bank, Singapore's largest commercial bank, believes that thanks to the increase in foreign tourists' consumption, Singapore's hotel, catering and retail industry revenue will increase. In the first The quarterly GDP growth was increased by 0.2 percentage points (approximately an increase of S$300 million to S$400 million).
Erica Zheng said entertainment-driven travel is reshaping the post-pandemic tourism industry as more people are willing to fly to attend concerts or sporting events.
Ms. Deng, who lives in Shanghai, flew to Singapore to watch a concert in January this year. She made an calculation to the China Business News reporter: "The round-trip air ticket is 2,000 yuan, the accommodation is 1,500 yuan, and the concert ticket is 1,500 yuan. This is the second or third price. Watching Mayday's concert in Singapore Yes, the difficulty of grabbing tickets is generally lower than that in China, and you can also enjoy other things on the way. Plus the distance is right, it’s not too much of a hassle to go there for two or three days.”
Is it easier to make money in a small economy?
In the Asia-Pacific region, in addition to Singapore, Swift's global tour is also held in Japan and Australia.
According to a report by the Japan Economic Impact Research Laboratory (eirl), Swift's four-day performance in Tokyo, Japan, will have a local economic impact of approximately 34.1 billion yen (approximately 1.67 billion yuan), of which ticket revenue is 5.4 billion yen. But in comparison, Australia feels "lost".KPMG chief economist Brendan Rynne said Swift's Australian tour had a net boost to the country's economy of only $10 million, but took away $100 million in profits from the country. This is because about 98% of ticket buyers during the Australian leg of the tour were locals.
Renn analyzed that any consumption related to these local audiences is diverted from consumption (or savings) that they may spend elsewhere and does not create new economic value. "Real economic growth comes from international tourists, and their consumption will be included in the national economic accounts as tourism exports." Wren said that pre-epidemic data showed that international tourists visiting Australia stayed for an average of 11 days and spent about 6,000 Australian dollars.
Toh Siying, Asia economist at Nomura Securities, said small economies like Singapore may get the biggest boost from Swift's tour.
The lure of this bonus has also caused some controversy within ASEAN countries. Thailand's Prime Minister Saitha recently revealed that the concert organizer AEG told him that the Singapore government provided Swift with a subsidy of US$2 million to US$3 million for each performance. In exchange, the Southeast Asian leg of the show could only be held in Singapore.
According to reports, local officials in Singapore revealed that the Singapore government also made requirements in the agreement that if there is sufficient ticket demand, the number of tours can be increased accordingly. Eventually, the number of performances increased from three to six.
Erica Zheng added that the benefits of holding such concerts go beyond direct income, because international superstars will also play a role in enhancing the reputation of the host country. Singapore can use this to promote its accessibility and Asia's best event hosting capabilities. Other international superstars are also more likely to bring their tours to Singapore.
Source: First Finance
