Taylor Swift effect: Singapore hotels, airlines see up to 30% spike in regional demand for 6 sell-out shows

SINGAPORE: American pop star Taylor Swift has yet to arrive but the knock-on effects of her upcoming stop in Singapore are already being felt and are likely to be wide-ranging.

Hotels and airlines told CNA that demand for flights and accommodation around the dates of Swift's concerts has increased up to 30 per cent.

Earlier this week, the Singapore Tourism Board (STB) said it provided a grant to help bring Swift's Eras tour to the country next month, her only stop in Southeast Asia.

"It is likely to generate significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel and dining, as has happened in other cities in which Taylor Swift has performed," said the tourism board and the Ministry of Community, Culture and Youth (MCCY) in a joint statement.

But what are these benefits to the local economy and does it make financial sense for the country to give a grant?

According to one expert, Swift's concerts in Singapore could generate revenue in the ballpark of and possibly exceed the estimated A$1.2 billion (US$787 million) in economic value from her time in Melbourne.

Singapore is one of two stops in Asia for Swift, having performed four shows in Tokyo earlier this month. The star has sold out all six of her shows here, which will be held starting from Mar 2.

More than 300,000 tickets have been sold, with a "significant" number of fans travelling from other countries, said MCCY and STB.

FLIGHT, HOTEL BOOKINGS UP

Demand for flights to Singapore on both Singapore Airlines and Scoot has increased in March, particularly from Southeast Asia, the airlines said. 

Jetstar Asia said demand has risen by 20 per cent for routes connecting destinations like Bangkok, Manila and Jakarta to Singapore, during the period when Swift is performing.

Hotels contacted by CNA said they also have seen an uptick in demand.

Cavaliere Giovanni Viterale, cluster general manager for Raffles Sentosa Singapore and Sofitel Singapore Sentosa Resort & Spa, said that when there are major concerts featuring internationally acclaimed performers such as Taylor Swift, their fans contribute "significantly" to hotel reservations.

"The demand from international visitors cum concertgoers continues to have a positive impact on our resort’s occupancy, which will be at peak levels from early March onwards," he said.

Mr Viterale added that the majority of the reservations originate from Southeast Asia.

M Hotel Singapore's general manager Edeline Tiong said that it had observed a spike in demand in local hotel bookings during the first two weeks of March in anticipation of the concerts. Ms Tiong added that the hotel is seeing a 30 per cent increase in demand from Southeast Asia.

Similarly, there also has been an increase of 20 to 30 per cent in demand from Southeast Asia at One Farrer Hotel, said its general manager Gilbert Madhavan.

"We have experienced a significant spike in demand during the period Taylor Swift is performing in Singapore, with a significant number of the bookings coming from our Marriott Bonvoy members in Southeast Asia and beyond," added Westin Singapore.

EXCLUSIVITY A POSSIBLE GAME-CHANGER

The provision of grants to bring in performers is nothing new, said Mr Christopher Khoo, managing director of tourism consultancy MasterConsult Services.

Such grants are given to encourage tourism development in a "specific direction", said Mr Khoo, who spent 15 years at STB.

Mr Joshua Loh, who is course chair for the Diploma in Tourism & Resort Management at Ngee Ann Polytechnic, said that it is "not uncommon" that destinations offer financial incentives to anchor major events.

This is both for direct reasons such as to boost tourism arrivals and spending as well as strategic reasons, including the branding of a place as a vibrant lifestyle destination.

Such incentives may include financial grants which are usually based on a percentage of qualifying costs such as event production, marketing, professional services, he said.

By lowering costs, grants can potentially allow for higher ticket prices or more shows, ultimately increasing the artist's earnings, added Dr Samer Elhajjar, a senior lecturer of marketing from the National University of Singapore's Business School.

"Additionally, grants can help cover the costs associated with venue rental, transportation, and accommodations, easing the financial burden on artists and their teams," he said.

"This financial flexibility can empower artists like Taylor Swift to optimise their touring strategies and expand their reach to new audiences."

Citing business confidentiality, STB declined to answer queries from CNA on whether the grant had been given out in the past and which acts it had been given to.

Historically, Swift's concerts have been big sources of revenue.

According to Mitsumasa Etou, a representative of research site Economic Effects NET, and a part-time lecturer at Tokyo City University, her four days of shows in Tokyo, Japan earlier this year are expected to generate up to 34.1 billion yen (US$226.8 million).

Swift's tour in Australia could generate A$1.2 billion in economic value in Melbourne alone where she had three shows earlier this month, according to the city's Lord Mayor Sally Capp.

Mr Khoo said that the amount of revenue generated in Singapore could be in the ballpark of Melbourne's figures or possibly more.

"I'm sure STB internally would measure this and be able to come up with a more accurate figure but I think this would be a good figure to work with," he added.

"Estimating the potential revenue from Taylor Swift concerts in Singapore would involve considering various factors such as venue capacity, ticket prices, merchandise sales, sponsorship deals, and other ancillary revenue streams," said Dr Elhajjar.

"Without specific details on these factors, it's challenging to provide an accurate estimate."

However, he added that given Swift's stature, her concerts in Singapore could generate "substantial revenue", potentially in the "millions of dollars".

About 96,000 fans packed the Melbourne Cricket Ground each night for three shows, while about 55,000 fans per show are expected at Singapore's National Stadium. 

There have also been questions surrounding a performance deal after Thai Prime Minister Srettha Thavisin said last week that the Singapore government offered US$2 million to US$3 million per show in exchange for exclusivity in Southeast Asia.

According to Mr Srettha, concert promoter AEG had informed him of the arrangement.

STB and MCCY stopped short of confirming if an exclusive deal was struck preventing the US pop sensation from holding her Eras world tour elsewhere in Southeast Asia.

Mr Kevin Wee, senior lecturer at Nanyang Polytechnic’s School of Business Management, said that exclusivity is critical from the branding perspective as it helps to cement Singapore as the true “events capital” in the region.

"Hosting exclusive events offers invaluable branding opportunities whose impact can persist long after the concerts are over, significantly boosting Singapore's image as a vibrant, culturally rich destination," he said.

"However, it's important to note that we don't have concrete information regarding claims about any exclusivity clause for Taylor Swift's concert."

Mr Januel Koh, a digital marketing and branding lecturer at Singapore Polytechnic's School of Business, said securing exclusivity for a global icon like Swift is "paramount" from the business perspective.

"It monopolises the market share within the region and compels billions of fans from across the globe to visit the exclusive host country for the concert," said Mr Koh.

"With over 300,000 tickets sold and a substantial number of fans travelling from other countries, the demand speaks volumes about the allure of exclusivity surrounding Taylor Swift's performances."