[Global Times special correspondent in Hong Kong Ye Lan] Editor's note: The "concert economy" has exploded around the world after the epidemic, attracting tens of thousands of groupies from all over the world to gather and boost consumption. The Hong Kong SAR government also rega

[Global Times special correspondent in Hong Kong Ye Lan] Editor's note: The "concert economy" has exploded around the world after the epidemic, attracting tens of thousands of groupies from all over the world to gather and boost consumption. The Hong Kong SAR government also regards concerts as "major events" a large part of the economy. Hong Kong society has different views and discussions on what kind of superstars to attract and which markets to target.

On January 13, 2024, Hong Kong, Jacky Cheung held the Hong Kong stop of his 60+ tour concert. (Visual China)

An indispensable part of the "event economy"

An article published by Singapore's "Lianhe Zaobao" at the end of March stated that Hong Kong undoubtedly has many unique advantages in developing concert tourism, and enjoying concerts in Hong Kong is a matter of mass consumption. Affordable entertainment, although ticket prices vary due to different levels of singers and viewing positions, the ticket prices are generally not too high. "Concert ticket prices are relatively cheap, which is still a major selling point for the development of Hong Kong's concert economy."

In the past year, Hong Kong’s pop music concert market has been very hot. According to statistics, since 2023, an average of two singers have held large-scale concerts in Hong Kong every month, and most of them have held more than two concerts, attracting an average of more than 10,000 viewers per game. Hong Kong's Hung Hom Coliseum (Coliseum) has been used at a rate of nearly 100% in the past year. Venues such as the AsiaWorld-Expo and the Central Harbourfront Event Space have also hosted a number of large-scale concerts, with the number of spectators at each concert ranging from 10,000 to 20,000. The concert also accelerated the recovery of catering, hotel, retail and other industries. For example, Singaporean artist JJ Lin and Taiwanese singer Jay Chou held concerts at the Central Harbourfront last year, and nearly 20,000 tickets for each concert were sold out as soon as they went on sale. The venue was packed with seats, and a large number of citizens and tourists who had no chance to attend also gathered outside the venue.

On March 26, 2023, Hong Kong, the final show of Junjie Lin’s jj20 world tour concert in Hong Kong was held at the Central Waterfront Event Space. (Visual China)

Chief Executive Lee Ka-chiu said that promoting the "event economy" and leveraging Hong Kong's role as an international city are high value-added development directions that can drive the economy and increase income. Operators from all walks of life must consider how to turn "popularity into wealth." Yang Yunxiong, Secretary of the Hong Kong Culture, Sports and Tourism Bureau, recently stated that the number of large-scale pop music concerts currently held in Hong Kong has gradually returned to pre-epidemic levels.

Business operators suggest that the SAR government, together with the hotel and catering industry, provide discounted packages for food, drink and accommodation at concerts to extend the time tourists stay in Hong Kong, so that the superimposed benefits of the "concert economy" can continue to be released. The Federation for Democracy and Economic Cooperation stated that in the past, whenever Hong Kong experienced economic fluctuations, it relied on holding concerts and other major events to boost the economy. For example, after the outbreak of the SARS epidemic in 2003, Hong Kong held various cultural, artistic and sports events, including inviting international Superstars came to Hong Kong to hold concerts and successfully revitalized the economy. Therefore, “promoting the event economy cannot be without concerts.”

It is worth mentioning that Macau, which is close to Hong Kong, also relies on the "concert economy" to attract money. Sands China President Wang Yingwei said that since customs clearance resumed in early 2023, Macao has hosted the highest number of large-scale performing arts programs and cultural tourism projects in neighboring regions in terms of quantity and quality. The group has held 65 entertainment performances in 2023, attracting more than 460,000 foreign and local audiences. Some industry insiders believe that Macau’s current economic model has shifted from focusing on the gaming industry in the past to strengthening the promotion of culture, art and tourism. Concerts can increase the number of overnight visitors, and their consumption is four times that of day-trip tourists, driving an increase in consumption in all walks of life in Macau.

Lack of suitable venues

Over the past period of time, the "concert economy" has become a widely discussed topic in Hong Kong society. This was still due to the failure to attract American pop queen Taylor Swift ("Taylor Swift") to perform in Hong Kong. Hong Kong's "Sing Tao Daily" stated at the end of January that an organizer in Hong Kong had indeed contacted the "Taylor Swift" team and planned to hold a concert at the Hong Kong Government Stadium, which can accommodate 40,000 people. However, the relevant departments said that there was no schedule and the Hong Kong organizer Fang couldn't reach an agreement with the other party, and Singapore exempted venue rent and provided subsidies. Finally, "Taylor Swift" chose to perform in Singapore. According to Hong Kong media reports on March 10, "Taylor Swift" is estimated to have brought 500 million Singapore dollars in tourism revenue to the local area.At the same time, mainland people's attention to Singapore has increased significantly. Same-trip travel data shows that attention to Singapore hotels has increased by 486%, and attention to air tickets has increased by 13 times. The volume of travel orders to Singapore on the Ctrip platform from March 1 to March 10 nearly tripled month-on-month and increased 158% year-on-year. The "Taylor Swift" concert also significantly boosted the catering industry. The person in charge of Haidilao's Singapore City Square Mall store said that the number of customers in the store has increased significantly since March, especially the evening market business after the concert has nearly doubled. In addition, "Taylor Swift" performed 4 consecutive concerts in Tokyo from February 7th to 10th, bringing 34.1 billion yen in revenue to Japan; her two performances in Melbourne and Sydney, Australia, are expected to bring 136 million yen to Australia. Australian dollar income.

It can also be seen from the "Taylor Swift" incident that Hong Kong's development of "concert economy" has shortcomings in hardware-the lack of suitable venues. Hong Kong has not invested in the construction of new concert venues for many years. The existing venues cannot accommodate a large number of audiences. The AsiaWorld-Expo can accommodate up to 14,000 people. The most popular Coliseum requires reservations six months or even a year in advance before it can be used. In addition, as "Lianhe Zaobao" said, hotel prices in Hong Kong are much more expensive than in the mainland. As the transportation between the two places becomes more and more convenient, many mainland tourists would rather leave Hong Kong after watching the concert. The article said that the Hong Kong government's development of the "concert economy" is a right step, but how to optimize supporting facilities will also test Hong Kong's skills.

can focus on the Asian market

Recently, Hong Kong's various efforts in infrastructure construction are expected to bring about a turn for the "concert economy". The Kai Tak Sports Park, which can accommodate 50,000 spectators, will be completed in stages by the end of this year at the earliest. There are three venues in the sports park, of which the main venue can provide up to 50,000 seats and is used as a large-scale performance venue. The number of waterfront concert venues that are popular among fans has also increased. In addition to the waterfront event space in Central, the Wan Chai waterfront event space covering an area of ​​approximately 1.4 hectares can be rented through short-term leases. Some Hong Kong tourism industry operators estimate that after the completion of large-scale concert venues that can accommodate more than 35,000 people, direct ticket revenue alone will increase by an additional HK$1.4 billion per year, and bring benefits of up to HK$5.2 billion to the overall economy, creating more than 16,000 jobs.

Zeng Yuancang, a special professor at City University of Hong Kong, said that the ticket prices for "Taylor Swift" concerts are high and Singapore does not care about the cost. The purpose is to attract high-net-worth customers to spend locally and at the same time create an international reputation. He suggested that the Hong Kong government should consider cooperating with private enterprises when planning infrastructure for major events. Some Hong Kong media also mentioned policy support. According to a report from Toutiao Daily, it is rumored that Singapore paid a huge subsidy of US$2 million to US$3 million to obtain the exclusive right to host the Swift concert in Southeast Asia. Another example is Kaohsiung City, Taiwan, which provides singers with complete traffic diversion facilities and allows them to perform at the main stadium of the World Games, which can accommodate 45,000 people. Last year, it attracted bands such as blackpink and Coldplay, and held more than 117 concerts throughout the year. A total of 1.39 million viewers attended the event, bringing in more than NT$4.5 billion in revenue and prompting local stores to extend their operations until 4 a.m. Macau also spares no effort in inviting international superstars to hold concerts, such as providing generous conditions, including free venue rental, and the hotel team provides five-star services, including airport transfer to the hotel and even independent elevators.

However, some people believe that choosing a concert requires careful judgment. The convenor of the Executive Council and the chairperson of the New Democratic Party, Ip Lau Suk-yee, does not agree with the use of large sums of public funds to subsidize such activities. Firstly, the SAR government has a huge fiscal deficit, and secondly, the most popular entertainers in the world are not just "Taylor Swift". Fok Kai-kung, a member of the Legislative Council for Sports, Performing Arts, Culture and Publishing, said that after the completion of Kai Tak, there will be no shortage of performance venues, but the Nine Exhibitions are about to be rebuilt, and there are fewer and fewer performance venues in Hong Kong that can accommodate 3,000 to 5,000 people, which is very important for cultivating local singers. , it is disadvantageous to attract niche singers to perform in Hong Kong.

Hong Kong's Hong Kong Economic Journal proposed another path, which is to focus on the Asian market instead of blindly being led by international superstars. Lisa Yang, President of the Hong Kong Chamber of Commerce in China, said that popular culture has always been Hong Kong’s soft power, especially in the 1980s and 1990s, which can be called the golden age of Hong Kong’s popular culture.How to attract international superstars such as "Taylor Swift" to hold concerts in Hong Kong is certainly one direction. Now Hong Kong can join hands with singers from both sides of the Taiwan Strait to hold concerts to revitalize Hong Kong's reputation as a "vibrant city." Goldman Sachs analysts described attending specific events such as concerts as being of short duration and with controllable expenses, and are regarded as "affordable luxuries." The emotional satisfaction brought by the experience economy makes it worthwhile or even worth the money, and consumers, especially the younger generation, are more willing to invest in it.