Swiftonomics leaves Singapore with post-concert gains – WiT

After six spectacular nights of the highly anticipated Eras Tour in Singapore, pop icon Taylor Swift has left the Lion City for Los Angeles, where she’ll rest for a couple of months while preparing for the rest of her tour on the other side of the planet.

While many concertgoers experience something called ‘post-concert depression’ or ‘post-concert blues’, the hospitality industry – and Singaporean economy at large – has greatly benefitted from Swift’s presence, raking in half-a-billion dollars in the process.

“We could see that the hospitality industry in Singapore prepared for the surge in activities from the Eras Tour well in advance,” Dr. Guy Llewellyn, Assistant Professor at EHL Hospitality Business School, Singapore, told WiT. “Hotel bookings surged by 10% shortly after the star announced her tour in July. Marina Bay Sands introduced three specialised packages for concertgoers, which include amenities such as tailored dining experiences, shopping credits at local boutiques, and access to attractions. The Fullerton Hotels and Resorts rolled out packages named after Taylor Swift’s biggest hits, such as Shake it Off, Stay Stay Stay and “Wildest Dream.” These packages were sold out before the events.”

Llewellyn continued, “Other businesses also adopted similar strategies, introducing Taylor Swift-themed offers to attract and cater to the influx of fans. For example, Haidilao created a station where diners can make bracelets to exchange with friends at the concert afterwards. These initiatives demonstrate the industry’s proactive approach in leveraging popular events to attract tourists and maximize their spending, ensuring guests have a memorable experience while also addressing the anticipated high demand.”

Similar surges were observed in Australia, where Swift performed before flying over to Singapore. The hotel industries in both Sydney and Melbourne posted their highest average daily rate (ADR) for any month on record, according to February preliminary data from CoStar.

Key lessons for Singapore and the region

“First of all, the event demonstrated the potential for entertainment events to become a significant driver of travel, as fans are willing to travel internationally to attend performances by their favorite artists,” emphasised Llewellyn. 

“Secondly, the significant spending by over 300,00 fans on concert-related travel and accommodation points to the broader economic impact that such events can have on local economies,” he added. “Additionally, the influx of international visitors attending Taylor’s performances presented a great opportunity for Singapore to position itself as an entertainment hub in the region as well as promote its tourism industry.”

Dr. Llewellyn’s comments were echoed recently by a Bloomberg survey which said that Singapore’s gross domestic product (GDP) is projected to increase by 2.9% in the first three months of the year, which is the fastest growth Singapore has seen in six quarters. Economists also raised their annual growth expectation for Singapore from 2.3% to 2.5%, placing it on the optimistic end of the government’s forecast range of 1% to 3% for the year 2024.

For a more grounded perspective, a Malaysian bus operator earned RM30,000 (SGD 8,531) by sending customers across the causeway for Swift’s concert alone.

In fact, the effects of ‘Swiftonomics’ are so great that the Indonesian government recently announced a two-pronged approach to music tourism – a potential collaboration with Singapore to bring more economy-boosting gigs to the region and an Indonesia Tourism Fund to help local organizers bring in big concerts. 

As Llewellyn says, “The grant provided by the Singapore Tourism Board (STB) and the exclusivity deals for performances like The Eras Tour is a strategic investment in the local hospitality and tourism sector. By supporting such high-profile events, the board not only enhances Singapore’s appeal as a global entertainment hub but also significantly positively impacts the local hospitality industry.

“However, it is essential to balance such initiatives with community interests and sustainability concerns to ensure that the benefits are widespread and long-lasting. High demand could lead to inflated prices and make it difficult to find accommodation during the event period. Exclusivity deals might limit fan choice and potentially raise concerns about fairness compared to other regions.”

He continued, “Singapore’s hospitality is also facing a manpower crunch that will be under more stress during big events such as the Eras Tour or Coldplay’s concerts. By carefully navigating these considerations, STB can leverage major entertainment events to stimulate the local economy.”

To inflate or not to inflate

Of course, when it comes to price hikes in the hospitality industry, the question of ethical business needs to be front of mind, ideally. With so many concert goers coming in from neighbouring countries like Malaysia, Indonesia and Thailand, we asked Dr Llewellyn about the boundaries of price hikes within the hospitality scene.

“During events like Taylor Swift’s tour, hotels face a dilemma: maximize profits or ensure access for fans. While businesses have the freedom to set prices based on demand, exorbitant prices can shut out many fans, especially those with limited resources. This can be unfair and harm the industry’s image as exploitative.”

“Finding a balance is crucial,” said Llewellyn. “While regulations or industry guidelines could curb extreme price hikes, alternative options like hostels or flexible pricing models could also help. These models adjust prices based on factors beyond just demand, potentially offering discounts based on factors like booking duration or purpose of travel.

“Ultimately, the goal is to create a system that allows businesses to thrive while ensuring fans, regardless of budget, have the opportunity to enjoy the experience and contribute to the city’s vibrant atmosphere.”