Coldplay and Taylor Swift concerts to contribute to the growth of Singapore

Coldplay, Ed Sheeran and now Taylor Swift. Singapore is looking to the gig economy as a new growth engine, which is set to add hundreds of millions of dollars in tourism revenue.

“The Lion City has traditionally been a magnet for business travel, but these large-scale global music events are a boon for Singapore’s travel-related services that can contribute up to 10% of its GDP,” he wrote Yun Liu, ASEAN Economist at HSBC. a recent note.

In January, British band Coldplay performed six shows at Singapore’s National Stadium. Fans purchased 200,000 tickets as the shows sold out within hours, breaking the city-state’s record for the most tickets sold by an artist in a single day. Singapore was the main Asian stop for Coldplay’s Music of the Spheres World Tour, boosting the country’s tourism industry.

Asia-Pacific travel platform Agoda has reported a “huge increase” in search traffic for accommodation in Singapore during Coldplay concert dates. The company said interest in those dates was 8.7 times higher after the band began selling tickets in June. According to Agoda, the increase was largely driven by neighboring countries Malaysia and Indonesia.

And starting this weekend, Singapore will host American pop star Taylor Swift, whose Eras Tour in the United States last year reportedly generated about $4.6 billion in consumer spending.

“Taylor Swift is also expected to generate a significant economic boost given her previous track record,” Liu added.

Shortly after the singer announced her concert dates in the city-state, hotel bookings in Singapore for March 2024 increased by 10%, data from hotel analytics firm Smith Travel Research shows. Swift is scheduled to perform six shows in early March, and the month is on track to reach the highest occupancy levels of the first eight months of 2024, according to STR data.

Demand for flights to Singapore has also soared. Swift’s blockbuster tour will only hit three Asia-Pacific countries: Japan, Australia and Singapore. Last week, the Singapore Tourism Board said it had provided a grant to bring Swift’s Eras Tour to the country.

Both are the country’s national airline Singapore Airlines and budget airline Scoot told CNBC that demand for flights to Singapore in March increased, particularly from Southeast Asia. Jetstar Asia also confirmed that it has seen an increase in demand of around 20% for routes connecting destinations such as Bangkok, Manila, Jakarta to Singapore.

Swift’s concerts are expected to generate around 350 to 500 million Singapore dollars ($260.3 to $371.9 million) in tourism revenue – assuming around 70% of concertgoers come from overseas – Erica said Tay, director of macro research at Maybank.

“If it hadn’t had Singapore as a stop, maybe I wouldn’t have bought the ticket,” said Singaporean student Mavis Mook, 22, who spent nearly 300 Singapore dollars ($223.38) on a ticket to the concert Taylor Swift.

“I want to experience it with friends who grew up with me. It would be so hard to fly together just for a concert,” she added. Mook told CNBC she spent another S$150 on a concert dress and beads for friendship bracelets, which concertgoers exchange at each stop on the tour. She also set aside funds to purchase tour merchandise.

Singapore has also attracted the likes of Ed Sheeran, Bruno Mars, Blackpink and other top artists. A star-studded concert program gives Singapore a new shine as a tourist destination.

“It has traditionally been a MICE sector – meetings, incentives, conferences and exhibitions – that has tended to attract wealthy business travellers,” said HSBC’s Liu.

Singapore has strong exposure to tech manufacturing and finance, but travel-related services account for 10% of the country’s GDP, he said.

Event tourism is reshaping the travel industry post-pandemic as more people are willing to fly to concerts or sporting events, Maybank’s Tay noted.

Beyond direct concert revenue, A-list artists could also make more lasting reputational improvements by supporting host countries.

“Scenes of enjoying yourself in Singapore, whether it’s trying iconic dishes or admiring the historic architecture, will contribute a lot,” Tay said.

“If he falls in love with chicken rice, he can put the dish, and Singapore, on the map for a new audience globally.”