“Swiftonomics”: The Taylor Swift Gold Rush
Author: Philip Hanan, Research Executive
Editor: Tavisha Jain, Research Director
From March 2 to 9, Taylor Swift had six sold-out shows in Singapore for over 300,000 fans. Significantly, over 70% of these fans came from overseas, most of them from nearby Indonesia, Malaysia, and the Philippines. Swift’s decision to come to Singapore has undoubtedly delighted Swifties across the region, especially with the country being the artist’s only stop in Southeast Asia. Nonetheless, her impact has been much larger than just her sold out shows. In what is now being dubbed “Swiftonomics,” Taylor Swift’s shows have brought about a sizable effect on economies worldwide.
Although still ongoing, Taylor Swift’s Era Tour is already the highest-grossing tour on record based on ticket sales. However, the money she brings in extends way beyond tickets, as the influx of concertgoers travelling to other cities or countries inadvertently boosts the local economy. Based on research by online booking platform Klook, tourists in Singapore spent about five times the face ticket value, or an additional $800 relative to their original ticket spending, whether on restaurants, accommodations, or other attractions. Further research indicates that Taylor Swift boosted Singapore’s GDP by up to 10%, offering credence to the country’s full-fledged support for international music acts. Specifically, British artists Coldplay and Ed Sheeran also recently had concerts in Singapore. Additionally, in the case of Taylor Swift, it really is no surprise why Singapore paid a reported S$3 million per show to secure exclusive rights for Era Tour concerts in Southeast Asia.
Taylor Swift’s economic influence on concert destinations and relevant industries is widespread. In the US, total spending from Eras Tour-related expenses reached US$5 billion. Delving into specific industries, the American leg of the Eras Tour produced the strongest growth rates for hotel bookings since the pandemic. For instance, Chicago set an all-time record for hotel occupancy records during Swift’s concerts in early June, 2023. The airline industry also saw significant boosts. Moving back to the Southeast Asia region, demand for flights to Singapore saw an uptick in early March (the dates of Swift’s concerts), with budget airline carrier Jetstar Asia reporting a roughly 20% demand surge in routes from neighbouring major cities like Jakarta and Bangkok to Singapore. An unexpected boost was seen in the arts and crafts industry. Swifties’ affinity towards ‘friendship bracelets’ that typically showcase Swift’s song titles or lyrics led to a 40% boost in jewellery sales at American craft store chain Michaels over August 2023.
Singapore’s economic successes have unsurprisingly elicited reactions from neighbouring countries, especially in light of the country’s move to pay Swift and secure exclusive rights for Era Tour concerts. Following some negative comments from government officials, such as those from Thailand and the Philippines, countries are nevertheless determined to jump on the event tourism trend in the region. This comes especially after the economic successes of the Eras Tour in Singapore which indicate consumer willingness to spend on such events. The Indonesian Minister of Tourism and Creative Economy has commented on the need for ‘Swiftonomics’ for Indonesian tourism. The country’s S$86 million tourism fund aims to develop critical infrastructure to attract foreign artists to visit. Similarly, Thailand has promised to relax alcohol regulations and pursue visa-free travel policies to lure “A-listers and world-class acts.”
As global connectivity and mobility will inevitably increase, Taylor Swift has created a brand identity that will only grow stronger and more lucrative with time. While Swifties hope that the pop superstar will never stop producing music and singing in concerts, your local cafe, hotel chain, tourism board, and even entire economies definitely feel the same way.
Further Readings
Economic Influence of Music: https://www.theguardian.com/business/2023/jun/15/money-singers-economies-abba-beatles-beyonce-bts-music-artists-pandemic
The Economic Potential of the Music Industry in Thailand: https://www.theguardian.com/business/2023/jun/15/money-singers-economies-abba-beatles-beyonce-bts-music-artists-pandemic
Music Tours and Inflation: https://www.economist.com/the-economist-explains/2023/07/25/can-superstars-like-beyonce-or-taylor-swift-spur-inflation
References
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